Monday, February 18, 2008

Housing affordability - we still have a long way to go

(click on the chart for a larger image)

The UK house price to earnings ratio has actually fallen marginally in the last months of 2007. House prices are now crashing; they are already down almost 5 percent since July 2007. However, prices will need to fall much further before the price to earnings ratio reaches its long term equilibrium level.

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