For those who already own their home or who are buying one with a mortgage it is a boost.
House values have nearly doubled in the last eight years. In Exeter the increase has been even more dramatic. In some cases people will have made more money on their homes than they have earned at work.
Higher home values enable people to release equity from their houses while maintaining the value of their nest egg. This is particularly welcome to pensioners who wish to boost their income. It is often forgotten in the debate over council tax that increases of two or three hundred pounds in bills have been accompanied by increases of tens of thousands of pounds in property values.
But higher house prices are a blow to those who are unable to get onto the property ladder.
This is a particular problem in the South West where the gap between house prices and wages is biggest.
Pay levels have been rising thanks to the minimum wage, tax credits and the general health of the economy. But it is still hard, even for a two wage household, to buy their first home without savings or family support.
More money is now being spent providing affordable housing. Part rent part buy schemes are part of the solution. Local authorities also need to drive a hard bargain with developers to ensure projects contain at least 25% affordable homes.
Councils must also ensure that the considerable sums coming from the abolition of the 50% council tax discount on second homes are spent on affordable housing for local people.
Finally, we need more homes. Not �concreting over the countryside� as some would have you believe. But a modest increase in provision as part of a mix of policies to ensure local people can afford a decent home of their own.
