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Europe Weekly

UK House Price Dynamics; EZ Q4 GDP; Fiscal Tipping Point in Hungary

UK: Understanding the House Price Dynamics

By Parul Walia

UK house prices have declined since the end of 2009. Despite a slight uptick in Q4, RGE believes that house prices will follow a downward trend for most of 2011.

Figure 1: House Price Indexes and Price-to-Earnings Ratio

Source: Lloyds Banking Group, Nationwide

We believe that the job losses[...]

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