House prices – the alarm bells are ringing

House prices are currently rising by between 14% and 16% a year, giving rise to fears of a looming crash. A key indicator of whether or not house prices are sustainable is their relationship to earnings, as given by the ratio of average house prices to average earnings (the HPE ratio).

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.