The Office for Budget Responsibility’s house price forecasts seem to imply a structural shift in the sustainable house price to earnings ratio and a return to peak of the market mortgage servicing costs. We would not rule out some rise in the equilibrium level of house prices relative to earnings over the past decade, but remain sceptical that the current gap can be sustained.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services