Comments: The peculiar problems of the UK housing market

Interesting comments and discussions on the UK housing market.
My recent analysis on the Swedish market for private homes
indicates similiar type of tendencies. House prices continue to rise.
The debt income ratio has risen by 6%-9% in Sweden due to the
low level of interst rates. But lets assume that interest rates start
rising both in the UK and Sweden. What will happen then?
This will lead to an increase in the usercost of housing. Lets
assume that unemplyment rises. If both interest rates and the
unemplyment rate would rise simultaneously this would result into a fall in the house prices. Is not the house price bubble on its way to bust. House price increases are not sustainable. What goes up comes down. It is just a matter of time.
See www.nier.se for my Working paper on the UK and Sweden.

Posted by Bharat Barot at July 15, 2004 04:29 PM

Is there any published material available re: earlier house price bubbles and crashes?
How far back does such information go?
If you know - or could point me in the right direction - I would be very grateful.

Posted by Kathy Watson at June 2, 2005 05:48 PM