IDEAS home Printed from https://ideas.repec.org/p/fip/fedgif/954.html
   My bibliography  Save this paper

Housing market risks in the United Kingdom

Author

Listed:
  • Robert F. Martin

Abstract

House prices in the United Kingdom rose rapidly in recent years. The run-up, larger than any other in U.K. history, leveled off early last year. House prices are currently declining at rates faster than those seen in the early 1990's downturn. The housing downturn, however, is far from complete. Using the price-rent ratio as a guide, house prices are likely to fall at least a further 30 percent before leveling off. Given the historic links between housing and real activity, the downturn is likely to be associated with very slow growth. Going forward, we recommend the price-rent ratio as the appropriate measure of housing valuation.

Suggested Citation

  • Robert F. Martin, 2008. "Housing market risks in the United Kingdom," International Finance Discussion Papers 954, Board of Governors of the Federal Reserve System (U.S.).
  • Handle: RePEc:fip:fedgif:954
    as

    Download full text from publisher

    File URL: http://www.federalreserve.gov/pubs/ifdp/2008/954/default.htm
    Download Restriction: no

    File URL: http://www.federalreserve.gov/pubs/ifdp/2008/954/ifdp954.pdf
    Download Restriction: no

    More about this item

    Keywords

    Housing - Prices;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedgif:954. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Franz Osorio). General contact details of provider: http://edirc.repec.org/data/frbgvus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.