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Of course they can. They appreciate so long as economies and incomes grow in real terms (as they have done over past 30 years). It's a pure reflection of that and I can't believe you can't see it. Over time house prices will reflect growth in wealth and not pure inflation. Over time you would expect the former to be greater than the latter.

Another factor is that cheaper prices for other costs in real terms will also lead to greater spending on housing. If that continues then away we go again

i would agree with warbler that there should certainly have been more building ( a real failure of recent governments)and that would clearly increase supply and that would suppress prices a little over time but I suspect not by much

[QUOTE="clivex, post: 2518822, member: 65326"] Of course they can. They appreciate so long as economies and incomes grow in real terms (as they have done over past 30 years). It's a pure reflection of that and I can't believe you can't see it. Over time house prices will reflect growth in wealth and not pure inflation. Over time you would expect the former to be greater than the latter. Another factor is that cheaper prices for other costs in real terms will also lead to greater spending on housing. If that continues then away we go again i would agree with warbler that there should certainly have been more building ( a real failure of recent governments)and that would clearly increase supply and that would suppress prices a little over time but I suspect not by much [/QUOTE]

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