Earlier quoted context omitted.
No, price increase is mostly due to inflation trends. When there is an inflation trend the house market follows, for example in London, after the start of the war in Ukraine things like gas and gasoline price went up which created a legit price increase for products that depends on those. But we've also seen an increase in rent. And that's because estate agents knew that since there was an inflation trend people were…
You’re wrong and you don’t know what you’re talking about, I don’t mean to be rude but it’s more than just inflation. There is a mismatch between number of people and number of housing starts, it’s been this way for 20 years. Estate agents charge more because people will pay it because anyone who can’t afford it goes homeless or moves somewhere else. In London, where housing delivery has long trailed short of need, t…
When you think about it, even in areas like London the housing market is not liquid nor uniform enough for the offer vs demand model to apply. You don't rent/buy home like you buy strawberries.
In about 1 year there was no significant increase in demand and the supply stayed the same but everybody saw its rent increase.
Edit: Also we should not mix-things up, the housing market is very different in outliers like London compared to the more global market. Here we're in the context of those outliers (Paris, London, etc.)