Friday, February 6, 2009
Has the Crash REALLY been Cancelled?
There has been a lot of press commentary in recent days about the UK residential property market possibly ‘bottoming out’ early in 2009. Unfortunately, much as many participants would like to see some stability return, the answer to the question: ‘are we there yet?’ remains: ‘probably not’! Over the long‐term, our research suggests that the most important relationship in UK residential prices is that between average house prices and average earnings. It is a ratio rooted in common sense, and equates what people are prepared to pay for a property with how long they take to earn the money to pay for it.