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UK House Prices are CRASHING and it's TOO LATE for anyone to STOP IT! The housing market crash is already well underway and the second half of 2023 is going to see even bigger FALLS in the UK property market.
House prices in the UK have been in a BUBBLE for the past 15 years and this is finally POPPING! The record low interest rates that underpinned the housing bubble have disappeared and may not ever return.
At the start of the year, if you had asked "will house prices go down in 2023?" some people would have said "NO!".
They argued against the chance of a house price crash and claimed the house price drops we have seen so far were just a temporary blip.
They were predicting inflation would come down quickly so the Bank of England could reduce the base rate and help make mortgages more affordable again.
Over the past few weeks, it has become very clear that this is not the case. Inflation has remained sticky and core inflation has actually increased, as a result, the Bank of England has increased the base rate to 5% and more hikes are expected later this year.
The average 2 year fixed rate mortgage has recently exceeded 6%, for anyone remortgaging from a 2% mortgage this will mean an increase to monthly mortgage payments of over 50%!
This increase in costs is causing a mortgage crisis and instead of asking will house prices drop in 2023, people are instead now wondering how much will house prices drop in 2023.
The government has already ruled out a bailout for mortgage homeowners and instead put the onus on banks and other lenders to offer more flexibility.
Unfortunately, this won't be enough to save the housing market and UK house price predictions are now looking extremely negative.
Do you think the UK housing market can be saved, or is it too late? Let us know in the comments below!
Did you miss our previous article...
https://trendinginbusiness.business/trending-videos/stamping-within-the-us-investment-talk-my-top-3-etfs
