Britain's property market is about to combust because
house prices are far too high and people are not earning enough to keep up. The
house price to income ratio is completely screwed up and people need to take on
more debt in order to get on the housing ladder. And it is for this reason that
Britain's property market is in serious trouble, because the schism between
earnings and rising house prices cannot be sustained. In fact, there is one
line in a new report sums up why Britain's housing market is set for a major
crash:
·
Property prices would need to fall by up to 40%,
or household income grow at ten times its current pace for the next five years,
in order to bring the ratio back to balance.
Read more on Business Insider.
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