Why are house prices sky high? It’s the banks, stupid

I came across the campaign group Positive Money’s website this morning whilst reading  letters readers of The Observer had written in response to its coverage last week of the rise in private rented housing in Britain, aka Generation Rent.

The website puts across a stark argument about the role banks have played in fueling runaway house price inflation by pumping billions of pounds into the property sector during the decade before the economic crash.

The result, it says, is that property values doubled in this time and we are not poorer, not richer, as an ever-increasing share of our incomes is spent on keeping roofs over our heads.

Check out the website, which sets out what the public can do to support the campaign. The two-minute video below sets out the argument about the role banks have played in creating this issue.