This one sentence sums up why Britain’s housing market is going to crash
Lianna Brinded
BusinessInsider.com
May 29, 2016
Britain’s property market is about to combust because house prices are far too high and people are not earning enough to keep up.
Basically 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, entitled “The UK’s housing bubble: ready to pop?” sent to Business Insider by macro-research firm Fathom Consulting that 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.
The Rest…HERE
