Fool News: IMF Highlights Risk To UK Housing Market

Mortgages and Home

Updated on 16 December 2008 | 0 Comments

Britain could be at risk of a fall in the housing market similar to that in the US, according to the IMF.

Britain could be at risk of a fall in the housing market similar to that in the US, the International Monetary Fund (IMF) has warned.

The IMF has added more fuel to the housing market debate by suggesting that house prices globally could potentially follow downward housing market trends in the US. Housing markets in many other countries have also enjoyed boom conditions in recent years, with some markets now showing signs of softening.

The IMF stated: 'there remains the concern that the US experience might presage steep housing downturns in other countries that have also experienced a rapid rise in house prices, with associated risks for output growth.'

The report also highlights that UK house prices have escalated far higher than incomes over the past few years. Here in Britain they now stand at about nine times annual average earnings - up from about five times in 2001.

This report certainly provides further fodder for housing market bears.

More: House Price Figures Are Surprisingly Strong

Comments

Be the first to comment

Do you want to comment on this article? You need to be signed in for this feature

Copyright © lovemoney.com All rights reserved.

 

loveMONEY.com Financial Services Limited is authorised and regulated by the Financial Conduct Authority (FCA) with Firm Reference Number (FRN): 479153.

loveMONEY.com is a company registered in England & Wales (Company Number: 7406028) with its registered address at First Floor Ridgeland House, 15 Carfax, Horsham, West Sussex, RH12 1DY, United Kingdom. loveMONEY.com Limited operates under the trading name of loveMONEY.com Financial Services Limited. We operate as a credit broker for consumer credit and do not lend directly. Our company maintains relationships with various affiliates and lenders, which we may promote within our editorial content in emails and on featured partner pages through affiliate links. Please note, that we may receive commission payments from some of the product and service providers featured on our website. In line with Consumer Duty regulations, we assess our partners to ensure they offer fair value, are transparent, and cater to the needs of all customers, including vulnerable groups. We continuously review our practices to ensure compliance with these standards. While we make every effort to ensure the accuracy and currency of our editorial content, users should independently verify information with their chosen product or service provider. This can be done by reviewing the product landing page information and the terms and conditions associated with the product. If you are uncertain whether a product is suitable, we strongly recommend seeking advice from a regulated independent financial advisor before applying for the products.