"Panic begins to grip UK Housing Market"

As this blog has long and repeatedly pointed out the real disaster in the UK economy is the coming house price collapse. Arabian Money, linked here, has also now spotted the reality, this quote comes from the linked article, headlined the same as this posting:

"..... 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."

(Blog editor's added emphasis)