Britain’s property market is going to implode as housing nears peak affordability
Property prices in Britain may be surging due to a horrendous imbalance of supply and demand — but the market is poised to implode.
Why? Because Britons are not earning enough money to either get on the housing ladder or are spending such a large portion of their wages on mortgages that may not be sustainable.
Well, not unless everyone suddenly gets a huge pay rise over the next year or so.
That's the assumption in the latest figures from think tank Resolution Foundation, which show that lower- and middle-income households are spending 26% of their salaries on housing, compared to 18% back in 1995. In London, households spend 28% of their income on housing.
The think tank said this is the equivalent to adding 10 percentage points onto income tax.
Only the rich are not feel...
