| The U.K.'s housing bubble put the U.S.'s in the shade. At their peak, U.K. house prices were at around 5.8 times average earnings, against a normal ratio outside of bubbles of around 3.4 times. They're currently around 4.4 times.
By contrast, the U.S.'s ratio of house prices to median income peaked at around 4.8 times, against a trend rate, like the U.K.'s, of around 3.4 times. Indeed, the U.K. property bubble was more akin to that seen in Japan in the late 1980s..............................................Full Article: Source
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