Economic recovery is dangerously lopsided, warns TUC

Commenting on the latest figures on inflation and house prices published today (Tuesday) by the Office for National Statistics, TUC General Secretary Frances O’Grady said:

“With London house prices sky-rocketing, while real incomes continue to fall, this recovery looks dangerously lopsided.

“Until real wages start growing again households will have to take on more and more debt just to get by, which is exactly the kind of recovery the UK needs to avoid.

“The fact that house prices for first-time buyers are now rising 50 per cent faster than for existing owners should sound further warning bells, particularly as the Help to Buy scheme is only starting to take effect.

“The government should look again at lowering the limit on Help to Buy to £300,000 to prevent the London property market getting even more overheated. It’s no good promising people help with a deposit if a housing bubble then means they have no chance of affording a home.”

NOTES TO EDITORS:

- The latest inflation figures are available at www.ons.gov.uk/ons/rel/cpi/consumer-price-indices/september-2013/index.html

- The latest house price figures are available at www.ons.gov.uk/ons/dcp171778_329930.pdf

- The TUC’s campaign plan can be downloaded from www.tuc.org.uk/campaignplan

- All TUC press releases can be found at www.tuc.org.uk

- Follow the TUC on Twitter: @tucnews

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