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"... At some stage, interest rates will have to return to normal. Admittedly, I think that is likely to be far distant. Nevertheless, it will come. At that point, unless something else has intervened to make houses more reasonably priced, there is going to be mayhem.
"You may think this unduly alarmist. After all, hasn’t the US housing market rebounded strongly? It has. But there is a vital difference. In America, property prices fell so far, that the ratio of house prices to earnings actually dropped well below its long-run average. That is precisely what has not happened in the UK.
"So if a new period of rising prices now gets under way here, this would be from a starting point where property already looks priced at bubble levels."
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