callivert - 11:20 pm on Dec 1, 2007 (gmt 0)

The OP was about *UK* prices.

True, but rising property prices have been a trend in many Western nations - not just the UK - for well over a decade. Understanding the UK market involves, in part, looking at the global market.

There are lots of 'just so' stories about why individual local property markets have been booming in various countries. For example, in Australia there are complaints that the government hasn't been releasing enough land for new housing. However the truth is that international finance is at least partly responsible for many of these booms.

So, here's the same question for the OP from another angle. Do you think property is currently overvalued or undervalued?