Times: Unaffordable house prices and the credit crunch
Times: Unaffordable house prices and the credit crunch Contrary to popular belief, it was only in the second half of last year that house prices in Britain became unaffordable.
Even then, according to the Lombard Street Research index, which looks at prices in terms of mortgage rates as well as household income, the problem was not as great as a decade and a half ago.
A correction of about 10% over two years should be enough to make them affordable again.
It should not take too long before the banks regain the willingness and ability to lend. Despite the credit crunch, mortgage rates here are far from the double-digit levels of the early 1990s.
Another crucial difference concerns the labour market, which has been fairly resilient so far.
House Price Bookmark
These icons link to social bookmarking sites where readers can share and discover new web pages.
Original post by little professor
This entry was posted on Sunday, April 13th, 2008 at 2:58 pm and is filed under Housing. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback