House Price Crash, can it happen?

Cassandras keep shtum on property risks

The funny thing about the housing market is not that prices are starting to accelerate again, but that policymakers, regulators and lenders are so relaxed about it this time around, and so confident that it won’t lead to a painful reversal.

Prices rose 10.5 per cent this year, 3½ times faster than in 2005, according to Nationwide Building Society. Valuation measures are deteriorating. Affordability is again plunging, especially for first-time buyers. Average earnings rose less than half as fast as house prices. Borrowing costs are on the up. Even with rents rising, buy-to-letters are struggling to make the sums add up.

.....................the article goes on to point out that the first rule of rubber bands still holds!