Panic begins to grip UK housing market as one of the largest house price inflation bubbles pops.
House prices have lost touch with the first time buyer market and are out of reach for those crucial first timers. In short, the house price to income multiple is far too high.
Indeed, the house price to income ratio is twice its long term average. For it to revert to this long term level requires either a doubling of salaries or a halving of house prices. It is not hard to see which option is the more likely in the current age of austerity.
But this is going to be a major shock to the UK national psyche. The bubble has been forming so long it has become accepted as a new reality. Few younger property owners remember the 1990-3 house price crash. Corrections can and do happen even in a market where supply is as tight as in the UK housing market.