In the OECD’s Economic Outlook, Issue No 81, the OECD has revealed house prices in the UK are 65% too high. The report compares the price of the average house with annual rental incomes which are now 65% greater than the historic average since 1970. Another measure is the house price vs average annual incomes ratio which is 45% higher than the average.
The Paris-based OECD said it was worried about the valuations of homes in a range of countries following a world-wide boom. It said a slowdown is long overdue and that a property crash cannot be ruled out.
» Houses ‘are priced 65 per cent too high’ – Daily Mail, 25th May 2007.