Keyboard worrier

Monday, February 01, 2010

UK housing still heavily overpriced?

Mike Shedlock discusses a recent international survey of housing affordability, and where the UK is concerned he notes:

Housing in the United Kingdom remains severely unaffordable, with a Median Multiple of 5.1, well above the historic maximum norm of 3.0.

This suggests that if prices returned to their long-term relationship with income, houses would lose 40%-plus of their current valuation. Yes, the housing market varies around the country, but "The United Kingdom had no affordable markets and no moderately unaffordable markets."

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