'House price threat to UK Economy' warns OECD.

Downgrading its growth forecast for the UK from 2.5% to 1.7% for next year the OECD, as reported in The Independent, linked here, reports as follows:

The housing market is identified as a weak point: "Renewed decline in house prices in the UK would have a negative effect on household balance sheets , and have become a more acute risk in the UK.

"Several recent signs point to renewed weaknesses in the housing market. UK residential property is perhaps 40 per cent overvalued on historic norms, the OECD suggests, though no immediate correction is foreseen.

The Government, like its predecessor, pretends this problem does not exist, indeed endeavours to sustain the ludicrous situation with its low interest rate policy, comments on which are not tolerated as discovered by Lord Young, read here. Afternoon update following Lord Young's resignation - for the truth on the matter read the Daily Mash comment, linked here.