Is the UK property market heading for a crash? – podcasting | New

Estate agents for sale signs outside terraced houses in Islington, North London.  Photo: Yui Mok/PA Wire
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Since Margaret Thatcher’s “right to buy” revolution in the 1980s, the UK property market has been an obsession for millions. For many, buying a home has been like winning a lottery, with property values ​​increasing year after year, often by far more than the average salary. It spawned an industry of lifestyle programs pushing people to get on the property ladder and renovate their homes.

Recently, however, things have started to go downhill. Prices in October fell 0.9% month-on-month, according to mortgage lender Nationwide, in the market’s first decline in 15 months. One of the reasons was a slowdown in demand for properties due to skyrocketing borrowing costs, with a wave of interest rate hikes leading to soaring monthly payments.

The Guardian’s acting financial editor, Rupert Jones, recount Nosheen Iqbal that for many households, mortgage costs are becoming increasingly unaffordable. And the rise will be particularly hard hit by those looking to remortgage after a fixed rate deal ends. But he says we need to be careful about how to frame a market “crash”, because drops of even 20% in house prices would only bring them back to pre-pandemic levels.

Photography: Yui Mok/PA

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