The UK’s high house prices may only correct in the event of a market crash, according to research by economists at the University of Reading, who note also that increased supply would have only a limited effect.
There would need to be permanent increases in construction that have never been seen before, the economists said.
Price-to-income ratios will likely stabilise even without majorly higher supply, but the adjustment could be in the form of an undesirable market collapse, they say.
