Nickell warns on UK house prices

In a speech on 'Household debt, house prices and consumption growth' given on 14 September, Stephen Nickell of the Bank of England said there is a significant probability that house prices in the UK will fall at some stage though it is hard to say how much by. Nickell said there are good reasons to believe that the equilibrium level of house prices to earnings is currently "well above" its long-run average.

"It is obvious there is a significant probability that house prices will fall at some

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