... another big crash prediction from MoneyWeek.

House prices could fall another 40% from here.

The argument is both compelling and an old-chestnut. It's about affordability.

Today, the ratio, based on an assumed average household income of £31,200 and an average HBOS house price of £160,869 is still a very high 5.16 times. To give you an idea of just how high that is, it's still above the 1989 peak ratio of 5.02 times.

Remember, though, that homeownership is a relatively recent trend... comparatively rare until the post-war period. There's no reason to assume our current view of affordability - taken by averaging this limited data - will prove to be the long-term one. It's a good read, though, and recommended.

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