Will worsening affordability halt the housing market recovery?

Even with our above-consensus views on house price growth and interest rate hikes, a rise in earnings growth will help keep mortgage payments as a share of income below their long-run average over the next three years. While tight mortgage lending standards will prevent a surge of housing demand, the risk of worsening affordability bringing the housing market recovery to a halt looks low.


Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.