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4 Jun 2014
UK housing market in focus - RBS
FXStreet (Guatemala) - Analysts at RBS explained that there is no 'UK' housing market bubble. . . yet.
Key Quotes
“The UK housing market is staging a spritely recovery but it is hard to make the case that there is a nation-wide 'bubble' here and now”.
“Nationally, house prices are around 6% below their pre-crisis peak in real-terms (deflated by CPI), while house prices relative to incomes are on their long-run (up) trend”.
“There is certainly no 'UK' house price boom – London and SE England are the only two regions where price rises are above the UK average since recovery began in 2009”.
“Still, current trends suggest stretched valuations and rising financial stress will be much more prominent by 2017”.
“The issue is not so much house prices per se, but the risks of an excessive build-up of household debt in response to rising house prices”.
Key Quotes
“The UK housing market is staging a spritely recovery but it is hard to make the case that there is a nation-wide 'bubble' here and now”.
“Nationally, house prices are around 6% below their pre-crisis peak in real-terms (deflated by CPI), while house prices relative to incomes are on their long-run (up) trend”.
“There is certainly no 'UK' house price boom – London and SE England are the only two regions where price rises are above the UK average since recovery began in 2009”.
“Still, current trends suggest stretched valuations and rising financial stress will be much more prominent by 2017”.
“The issue is not so much house prices per se, but the risks of an excessive build-up of household debt in response to rising house prices”.