Sir: Hamish McRae's article (17 June) suggesting that we should regard house price inflation to be as undesirable as general inflation is very timely. If house prices are rising by 20 per cent in the Southeast, some people will make untaxed windfall gains. This ought to be a key issue for the social exclusion debate. House price inflation over the last two years seems to have been one of the main reasons for increased inflation generally, higher interest rates and the high exchange rate.
Principal Research Officer
Sheffield City Council