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

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