This week sees the launch of my new video series, Bonkers Economics. First up, I'm asking why we're all so addicted to rising house prices. I say addicted because rising house prices really are that harmful, even for homeowners, as the video explains. The video lasts nine minutes and can be found here . For those who prefer reading or would like a quick synopsis or recap, the key points are as follows: Rents follow house prices: If you own a house but other people in your family - for example your children - are paying rent, then watching the value of your house increase is an expensive entertainment when you consider your family as a whole. Because an increase in value that you're not likely to cash in any time soon is costing your family collectively real money, right now, because rents are so high. For those just clambering on to the housing ladder, the rising price of their first home is going to cost them real money going forward. That's because first-time-buyers g
The headlines for home owners in today's budget are an extension to the stamp duty "holiday" and guarantees for 95% mortgages. Neither step will contribute to what should be the overriding policy objective, which is to make homes more affordable.