Property may slump next year

House prices could tumble sharply in 2008, experts warned last night. They claimed rising prices have left the housing market at its most overvalued for 15 years, meaning a growing number of people are unable to get a foot on the property ladder.

The report by Lombard Street Research for The Daily Telegraph showed that house prices across the country are rising much faster than wages.

This means that affordability - a comparison of house prices and mortgage costs with incomes - has dropped by 7%over the past year.

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