Houses Not Special in UK Too

I asked here whether real property is still a special category of property and my answer tended towards saying that in the US, it appears that those days are long gone. The same fixation on the part of the public and their governments seems to have afflicted the United Kingdom where taxation policy tended to tilt in favour of home ownership. In spite of the fact that the slump in the UK appears to have been corrected and home values have not fallen precipitously, Larry Elliot of the Guardian argues convincingly that house prices will fall for a while yet.

Indicators of the underlying difficulties in real property markets are seen in the fact that first time buyers are unable to afford property and there is a big generational difference in the ability to acquire home. iIn essence, the ownership of homes favours the elderly citizens together with wealthier individuals. In a sense, that house prices in the UK and the US have faced difficulties and are bound to remain low for a while is a good case study for students of economics. One wishes that the laity understands that the problem was the belief pushed by interested lenders and brokers that home ownership is special.