Learn 50+ Years of Economics in Only 7 Weeks, by applying here: https://www.stevekeen.com (Plus get Ravel — the economic visualization software used in this video — as a bonus if you’re accepted and join.) 📢 This is a reupload of the original video with improved visuals and audio for a better viewing experience. Top Economist Steve Keen breaks down why the UK’s housing market has gone from “crisis” to “ticking time bomb.” With long-run data and Ravel demos, Steve shows how deregulated mortgage lending not mere shortage pushed the price-to-income ratio from ~4.5× in the post-war era to ~9× today, and lays out two concrete, workable policies to restore affordability: PILL (Property Income Limited Leverage) and an Affordable Housing Authority offering zero-interest mortgages for median and below-median earners. In this video, you’ll discover: ✅ Why today’s 9× price-to-income rivals 1876 — and what changed after the 1980s ✅ Building societies vs banks: why one didn’t create money and the other does ✅ How bank-created mortgage credit inflates prices far faster than wages ✅ The post-Thatcher break: household debt explodes, real house prices double faster ✅ PILL: cap mortgages to a multiple of rental income and phase it down toward ~10× ✅ AHA: zero-interest public lending that turns “housing stress” into manageable payments ✅ Why both must run together (one cools leverage, the other preserves access) ✅ Bonus history: Ford and Edison’s case for interest-free public finance — and why it matters now Key insights: • Price without leverage is fiction: new mortgage credit is the main source of housing demand. • Deregulation shifted lending from building societies to banks — expanding money and bidding up existing homes. • At 7% interest, over half of lifetime payments are interest; at 0%, typical payments drop near the 30% “stress” threshold. • Pairing PILL with AHA bends prices down while keeping doors open for average earners. • Private debt — not public debt — is the core macro risk behind UK housing volatility. Subscribe for reality-based economics Like if this clarified why UK homes keep outrunning wages Share to help others see what actually drives prices --- Who is Dr. Steve Keen? Dr. Steve Keen is an economist known for accounting-consistent, data-driven models showing how bank money and private debt drive booms, busts, and asset bubbles. Creator of the Minsky and Ravel tools, he replaces classroom myths with operational mechanics — essential for engineers, finance professionals, and anyone who wants clarity over ideology. Learn 50+ Years of Economics in Only 7 Weeks, by applying here: [https://www.stevekeen.com](https://www.stevekeen.com) (Plus get Ravel — the software used in this video — as a bonus if you’re accepted and join.) #UKDebt #MoneyCreation #ukeconomy #BOMD #SteveKeen #Ravel #Macroeconomics #FiscalPolicy #BankingSystem
