Is the UK housing market heading for a crash? – podcast

Ever since Margaret Thatcher’s ‘proper to purchase’ revolution within the Eighties, the UK housing market has been an obsession for thousands and thousands of individuals. For a lot of, shopping for a house has been like a lottery win, with properties rising in worth yr after yr, typically by excess of the typical wage. It has spawned an trade of life-style programmes pushing folks to get on to the property ladder and revamp their houses.

Just lately, nonetheless, issues have began to go bitter. Costs in October fell by 0.9% month on month, in line with the mortgage lender Nationwide, available in the market’s first decline in 15 months. One of many causes was a slowdown in demand for properties because of spiralling borrowing prices, with a spate of rate of interest rises resulting in hovering month-to-month funds.

The Guardian’s performing cash editor, Rupert Jones, tells Nosheen Iqbal that for a lot of households, mortgage prices have gotten more and more unaffordable. And the rise will probably be significantly harshly felt by those that will probably be trying to remortgage after a fixed-rate deal ends. However he says we must be cautious learn how to body a market ‘crash’, as falls of even 20% in home costs would solely return them to pre-pandemic ranges.

{Photograph}: Yui Mok/PA

Assist The Guardian

The Guardian is editorially impartial.
And we need to preserve our journalism open and accessible to all.
However we more and more want our readers to fund our work.


Assist The Guardian

Leave a Reply

Your email address will not be published. Required fields are marked *