You know what they say about statistics! It is true that the cost of purchase has increased by this approx. amount over a long period of time but :- the volatility has increased dramatically to about 40% meaning so that buying at the wrong time of the volatility cycle will mean that you are buying at a figure far above or below the natural increase. Also when calculating natural increases the government charges and taxes should be excluded as they do not follow any natuaral cycle but increase at will when the government wants more income. So what does this mean. the historic figures cannot be relied upon any more as a natural cycle because the figures are now manipulated by industry bodies and the government. Objects are no longer sold for what they cost but for what the market will allow at a given time with those prices being extremly fluid So surprise, surprise house are valued in the same way as shares with popular sentiment the main mover of prices and the actual book value way in the background
