Interest rates in the UK are 0.5% and have been for 7 years now. These low interest rates, while necessary for the real economy with inflation near zero, suppor

Interest rates in the UK are 0.5% and have been for 7 years now. These low interest rates, while necessary for the real economy with inflation near zero, support extremely high house prices. Mortgage interest payments substitute for rent so low rates imply high prices. As a renter without much in the way of assets a high inflation high interest rate regime is really beneficial. Higher rates would mean lower prices (thus lower required deposits) and high inflation would mean quickly building equity.