The UK economy is lethargic and slowing. One of the primary reasons is how much young workers devote to soaring rental costs – leaving their discretionary spending battered, and life fulfilment difficult. The lack of housing security is leading many of them to question why bother? Solve that problem, and the economy could thrive.

At the core of the UK’s many economic problems the new government must address is the unaffordability of housing for the bulk of UK workers. Yet the government’s new plan to make it easier to build new executive rabbit hutches on greenfield sites does not address the crying need for 2 bedroom flats in inner cities to boost growth and prosperity.

The UK housing market is at its’ highest income multiple since the 1850s, at a time when real incomes have flatlined for 2 decades, and mortgage borrowers are levered higher than ever – its set for a wobble, sustained only by supply shortages. If it crashes.. all bets on the UK will need re-examined.

The UK housing market is red-hot, up 13.4% over the last year. But its fuelled on stamp-duty holidays and ultra-low rates. Will it hurt? If so… how much?