The cost of living generally has increased over the last decade with the biggest increase being house prices. However, the cost of life insurance has fallen, as has the cost of clothing, household appliances and cars.
A big increase was also noted in the price of package holidays. Although the cost of living has increased, so have our earnings over the same period of time.
Our view
It goes with out saying that we are living in a World where property has been the stable investment over the last ten years. As well as it contributing to an increased cost of livining it has also contributed to peoples wealth.
The danger is people buying property as second homes, holiday homes or 'buy to lets'. These are all solid investments until you sell and potentially have to pay up to 40% in Capital Gains tax to Mr Brown.