The UK government's clear ambition is to trigger a mini house-price boom (bubble) in the south-east of England in the run-up to the general election in 2015 appears well on course, with average house prices up a startling 8.1% year on year in London in June.
Unfortunately, there's still little sign of an accompanying rise in housing construction. The ever widening regional disparity in the UK housing market between south-east England and the rest appears unsustainable. And whereas an inflation-busting rise in the price of housing is celebrated by ministers and media, a more modest above-inflation rise in the price of rail fares (up 4.1% from next year) is met with a rather less enthusiastic reception.
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