Meanwhile, property prices roughly trebled between 1963 and 1979, while consumer prices rose by a factor of just 2.5. But there was a sting in the tail. The same governments that avowed their faith in the 'property-owning democracy' also turned out to believe in price stability, or at least lower inflation. Achieving that meant higher interest rates.
Between 1963 and 1979, property prices saw a significant increase, nearly tripling, while consumer prices only grew 2.5 times. This drastic rise in real estate values highlighted a booming property market during that period. However, the enthusiasm for home ownership came with unforeseen consequences.
Governments that promoted the idea of a 'property-owning democracy' were also focused on maintaining price stability and keeping inflation low. To achieve these goals, they had to raise interest rates, which ultimately created challenges for homeowners. Higher borrowing costs could offset the benefits of rising property values, illustrating the tensions between encouraging property ownership and maintaining economic stability.
