"This seems to be the type of headline that is seen when a house price peak is not far away." Stephen, Cambridge,

Stephen its the type of headline that; a) new Govornment Agencies have to come out with to justify the tax-payers money that goes into them and b) Newspaper with declining sales have to publish to scare the living daylights out of the average house buyer.

HBOS have today released their house price index for May which, for the fourth month running, shows a declining monthly house price growth.

Rod Munch, Northampton, UK

Tell us, why is the problem that house prices are too high? Why is not the problem that salaries are too low?

Produce a credit bubble, and you will automatically produce a disparity between asset prices and incomes. You will also produce a rising inequality of incomes. The result will be that some people cannot afford to buy housing - or any other assets.

From then on, everything you do to make housing 'affordable' to buy will make house prices rise more.

What should you do? Don't create a credit bubble in the first place. But having done that, accept that until it bursts, it is financially better to rent than to buy.

That's right. When purchase prices are 10 times income, what are rental? They are very affordable. So rent. This is a sure sign of the top of the credit bubble. You'll be able to buy soon. But then, you will not want to.

George Johnson, London,

"...putting home ownership out of reach for the majority of young people, a new government agency says today."
This statement sounds in conflict with the title "The future of house prices: 10 times pay"
How can prices go up so much that noone can afford? Who buys them?
This must be government spin to put pressure on local authorities to give planning permits. In that case it is a welcome initiative... spin, spin, build, build, and prices will crash.

Michele, Richmond,

Last week, on the same day, the Daily Mail's headline asked, 'have house prices peaked?', and the Daily Express headline yelled, 'house prices reach new record high.' The truth is that no one's got a clue whether a crash is coming or not. But a rising market is built on consumer confidence, and that confidence appears to be wobbling. The average house price is now close to £200k - well beyond the reach of most first time buyers. New mortgage applications have markedly dropped in recent months, and interest rates will probably reach 6% by the end of the year. When the Japanese property bubble burst in 1989, house prices fell for 13 years straight. No one wants to buy at the top of the market and then suffer that kind of disaster. It could happen here. I think that buying a house at the moment is a bit nuts.

Thomas Martin , London,

The bare numbers hide the fact that we have built too many one and two bed flats and not enough 2 and 3 bed semi's with a garage and a garden.
That is what a family needs and it is the planners duty to provide sufficient to let the price at least stagnate to make them affordable.

Nick tucker brown, Cheltenham, UK

As houseprices slip even further from the grasp of people who are yet to get onto the property ladder it appears this country is sliding rapidly towards economic disaster.

Buy to let is drying up (i've been flat hunting recently in bristol and there has been a glut of flats for rent - and not enough tenants to fill them), In addition the rents have not gone up significantly which must make me question the profitability and sustainability of buy to let.

Secondly, mere mortal potential first time buyers like myself are being priced out completely.

So if buy to letters can't find tenants and first time buyers can't afford a house then the price has to come down - sooner or later. Personally I take a mid term view - with a bit more growth this year and next then a correction in 3-4 years time.

I'm just buying a property in Poland (for financial and personal reasons). With what would be half a deposit on a flat here, we've got ourself a beautiful farmhouse...go figure.

Chris , Bristol, UK

The biggest problem is all the anti-social housing (by to let property). The goverment needs to start heavly taxing these greedy individuals on their second homes. Then problem would no dought sought it self out without the need for a massive building program. Personaly I would not whant to live in a new house anyway given the appauling design of modern housing( all the money goes into the price of the land).

Neal, York,

Property prices, supply, demand and affordability, a simple equation.
Nothing will change unless one of the three elements of the equation changes.
What did John Maynard Keynes say "when the facts change, I change my mind".

Running on Empty, Gerrards Cross, Leafy Bucks

Obsession with house prices is certainly taking away from other things in life....!

Conor Finegan, London,

10 Times? For an average earning couple - let's say 35-50K a year between two, who have two kids. Can they really afford the average house in Britian anymore?

I can't even imagine what the life of newly qualified key workers would be like by 2026 if the property is 10 times their salary. If most people have to spend too much money in accommodation - then they cannot afford to spend - then the economy is not going to be as good - will property prices crash then?

I think the government should have carefully controlled the supply and demand of houses so that the prices maintain a steady growth - not what we saw in the past 10 years.

Ben, manchester,

What about providing affordable local rented housing; we could call it "council housing" ....and then elect someone who would sell it all off at a knock down price.

stephen gell, Buxton, UK derbyshire

It is simply amazing how the crucial reason for the huge increases in "prices" is never touched upon: The role of The Monelylenders. If The Moneylenders were not permitted to blackmail borrowers into a lifetime of misery paying 10+ x salaries [which in many parts of the UK is at least what is needed even for a modest home], then the "money" [actually pretend money in effect produced out of thin air by The Moneyleners] would not be available to pay for the ever rising "prices". It is the World's Biggest Ever Pyramid Selling scam - financed by totally irresponsible lending by Moneylenders. They are falling over themselves laughing all the way to - the bank. Much of lending is fraudulent. Moneylenders actively encourage their borrowers to lie about their income: This is endemic, and has played a large part in driving up prices by 300% + over the last decade. This is one of the greatest scandals of our times - and it's about time perpetrators - Moneylenders and their friends - were jailed.

Paul, Bath, UK

The real reason there is an issue with supply in housing is the so called boom in "Buy to Let". In Brighton thousands of flats lie empty all year round that have been bought by so called property investors and the same thing is repeated around the UK in cities such as Manchester, Nottingham, Birmingham, Exeter, Bristol etc.
As soon as prices start to drop and interest rates rise to 6% the majority of these amatuer "investors" will ditch their properties en masse. The so called experts discussing housing shortages now will have egg on their face as the market suddenly becomes over supplied with unwanted second homes and BTL Properties.
The crash is here and some are unwilling to face facts. The supply/demand argument is not true and the only counter argument used to why we won't follow Spain, Ireland and the US into a housing crisis.
This one in my opinion will be big and could lead to a correction of as much as 40% - 60%.

Adrian Brown, Brighton, East Sussex

What Professor Nickell has done is to extrapolate from the past. Usually, this is a good way to forecast.

However, there is an elephant in the room that he has not seen - oil.

Yes, we are close to the maximum that the world will ever produce and from now on there is only one way it can go - down.

This means that in 20 years time people will not be able to live in an almost unbroken suburbia across the UK. People will have to live much nearer their jobs, schools and shops. We will have to start walking and cycling again. Clearly, the Polish plumbers and their ilk will return home - since it is better organized for that lifestyle than the UK is.

Obviously, people will have to live in more crowded conditions and the current system where a lot of people have a big house standing almost empty will be swept away. We will have to revert to a new-Edwardian lifestyle.

Alfred, Ryde, Isle of Wight, UK

When are we going to wake up and realise that the UK is a small country, hugely overpopulated. Government is allowing more and more people to live in Britain from Europe and elsewhere, and I would guess that most of them go to live with family or friends in overcrowded conditions.

Britain cannot produce enough food or energy to sustain itself, and there is the never ending pressure on the population to find somwhere affordable to live. Welcome to the brave new world of socialist life. Why are the academics who advise government so silent on the population problems that Britain faces? is it political correctness overcoming common sense?

Malcolm Cottrell, Edmonton, Canada

Figures from Migration Watch UK, a new group led by a former diplomat and an Oxford University demographer, predicts that more than two million people will arrive in the UK every 10 years for the foreseeable future. So, as they will not all be living in tents or caravans we can assume that they will be taking up housing stock.

This is a small island and it is already overcrowded in many parts. Those who can escape that overcrowding and live in the countryside are helping to put up prices to a level with which locals cannot compete.

There has to be a time, and now seems opportune, for consideration to be given to restricting immigration to a level that matches emigration. If this fails to be done then the prospective figures on house costs will prove to be true.

A Challoner, Llanerchymedd, Anglesey

Does this report take into account the effect of higher interest rates on house prices? Do the highly paid new members of the National Housing and Planning Advice Unit, another government quango, believe that interest rates will remain at historically low levels forever? If the Bank of England had been ahead of the curve they would already have raised interest rates by at least a further half a per cent, causing the buy-to let brigade a lot of pain. Let's see what happens to house prices when savings accounts start offering 6.5 - 7% interest rates. Not long now!

Sally , Brentwood, Essex

One wonders whether these "experts" have worked out that 10x salary means the mortgage payments would be greater than the monthly income before tax, let alone after tax and NHI. Britain and its government have gone completely stark raving mad. The answer is to control prices somehow via tax, regulation, whatever, but it is completely barking mad to seriously suggest that an economy can continue to function on 10x salary mortgages without calamitious consequences, financially and socially.

Derrick, Guildford,

To predict house prices, or anything else for that matter,20 years ahead is sheer nonsense.
It seems to be a current fad to prophesy and claim scientific evidence for its accuracy. We might as well consult Nostradamus as evidently many people do.

George Herbert, Bournemouth, Dorset

Perhaps the shortage of homes would be less acute if some people did not have more homes than they need.

PR, Cornwall,

Is this a Labour government or what? There should be rules: banks shouldn't be allowed to lend money if it takes a person over the poverty threshold. Problem solved.

starling, Lancaster,

Sadly this is a situation that has been created by the market itself. With increasingly limited opportunities for the younger generation, this may lead to emigration on scales not seen for decades, The housing situation in the old colonies seems to be much better, with already record numbers of health professionals leaving after qualifying and the shambles of today's health service. Key worker housing is difficult to access and expensive (two bed flat in South London) over 200, 000. However the government and councils must act with the income they obtained selling council housing stock and create better opportunities for all.

Christian Holst, London ,

Totally agree, sensationalist nonsensical headline which no justification to back it up. This is designed to justify planners able to push through what they want, and to reinforce the position of those who are already feeling overextended. Classic bubble.

Wilbur, London,

The irrational exuberance of the housing market continues, I see. This article has renewed my faith in the possibilty of a crash, so much so that I'm now convinced I should invest some money in going short on some property funds.

I particularly enjoyed the fact that the report seems not to have taken into account possible interest rate fluctuations or the end of the current demographic bulge in its projections for housing values into 2026.

MB, Edinburgh,

Just what the housing industry needs - a collection of academics, bureaucrats and people who have never set foot on a building site dictating policy to another bunch of local government bureaucrats. With luck and expenses it should cost the taxpayer millions.

chris kempton, northwich, cheshire

Where is your 3-4 times income for purchasing a house Mr Smith of the Times? Another mistake brushed under the carpet whilst wearing rose coloured spectacles.

Paul, London, Ontario

Why don't we invite a few more foreigners to come and live here then? That should sort out the housing problem eh! Oh and it'll solve the overcrowded roads and hospitals too won't it.

Rob, Sheffield,

We need to change the mentality towards housing construction. Limitless vistas of suburban housing covering the country is not practical- and younger people generally want to live in the cities. Brand new projects are required. The average new build apartment complex in the world's large developing cities, such as Beijing, are more than thirty stories high. Demolishing much existing housing stock to make way for much larger condiminiums will probably be necessary. Not across the whole of British cities, but certainly on a scale big enough to make better use of available space. 200 grand plus already for a bedroom 'studio' in half a 19 century workers cottage? We have to get real. Unfortunately this will be unprecedented in the UK and require real leadership. some hope anytime soon.

Thomas Calvert, London, UK

All we need now is a story about a broom cupboard in Chelsea breaking the £million mark, and I'm selling up.

Tim Morris, London,

Reduce the population.

David Thijm, Stourbridge, UK

I believe as a first time buyer that the current situation with housing is already at the stage of crisis and young buyers in our great country won't obtain the right as we did to experience, the buying of their first property. I have major concern for those individuals who choose to discard education and become a waster just depending on their benifits. These people won' t even be able to afford rented accomidation. The only benifit from this is that the hard working interlectual citizens of our country will raise above those who once mocked upon!!

D.T. Talliss, Birmingham, England

They are nearly at these levels today.
Average price around here for a basic 3 bed.house is £200K.Average wages are between £20/ 25 K.You don't need to be good at maths.to work out that we are virtually there now.The laws of supply and demand will intervene and a fall in prices is not far away,because I can't see wages and salaries increasing.

Mike, Dunstable, England

Affording a property due to high prices is very difficult now, I can’t imagine who it would be in 2026 – may be just impossible for young people.

D Haria, London, Uk

This report is rubbish. It ignores the fact that house prices are driven by a market. If no one can afford a house it won't get sold.

Malcolm, London,

In other words, if you don't get on the property ladder now, you never will. Isn't this what people said before the last crash?

D Ryan, London, UK

The new taxpayer funded National Housing and Planning Advice Unit (NHPAU) really ought to open its eyes. Houses that real people would actually want to live in are already far above 10 times average annual income in most parts of the country. Prices long ago pasted into the realm of comedy and cartoon. When reality bites back the fallout will be dramatic and no amount of spin will shield the over-borrowed from the consequences. There is a great deal of fear in the 'market' and with good reason. The way that the crash develops will fill textbooks for decades.

Steve, Salisbury, UK

The future of house prices: 10 times pay
With the problem on the Great 8 summit I find this a piece of cake. The reason is simple. There they are fighting for the countries. Here you are looking at the houses.
No country safe or if Bush and Putin carry on struggling over the Nuke shield, the while in the price is very little issue to the British.
What we have to look at “Do good to the world, World will in turn will do good to others”
Mr. Tony Blaire has indeed left the country for Mr. Brown in a terrible state.

Firozali A.Mulla MBA PhD, Dar-Es-Salaam, Tanzania

i went to an auction yesterday in london and it was totally out of controll - some one said it was the "WILDEST" auction he had ever been too with crazy prices for the smallest and awful accomodation ever. If people continue to pay mad prices for crap accomodation i am sure the mental health of our city's population will start declining - wiht the stress of mortgage coupled with too tight living space...it is bound to start some kind of new mental health condition...

xanadu, london, uk

The homes that are being built appear to be only for people who are earning city wages. Luxury apartments seem to dominate my area of south london. If you do find a property in areas other than London, you have to commute back in, catch 22

Diane, London,

It is clear social housing is going to be a necessity from the data provided and if the councils and the govt. ignore this situation today, i think we are looking at what is currently prevailing in East European countries where families live together in a over crowded condition.

N N Kini, London,

This seems to be the type of headline that is seen when a house price peak is not far away.

Stephen, Cambridge,

No, these are the consequences of Prescott's (in)actions. Had he been less concerned with maintaining warm relationships with his civil servants, and more concerned with the impact of low housebuilding rates since this government took office, we might not now be facing this situation.

Had this government not encouraged immigration in order to boost the Labour voter count, the existing housing stock might have coped more adequately. Our children's inability to buy their own home is another of Blair's legacies ignored in his recent "carbon footprint" tour of the world.

Tony G, Harrogate, UK