UK House Prices Finally Start Falling: What Next?

UK house prices defied rate hikes but are now falling rapidly, raising concerns. This video delves into the reasons and future prospects.

Housing Crisis Explainer:
Further Reading:

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[mzo.]

Our society has become obsessed with everything increasing in value as opposed to staying stable... and in the last 60 years we've seen how our economic system is crumbling and needs to be propped up artificially

[gingerkilkus]

The fact that there is already an excessive amount of demand awaiting its absorption, despite how everyone is frightened and calling the crash, is another reason why it is less likely to occur that way. 2008 saw no one, at least not the broad public, making this forecast, as I'll explain below. The ownership rate was noted to have peaked in 2004 in the other comment. Having previously peaked in the second quarter of 2020, we are currently at the median level. Between 2008 and 2012, it dropped by 3%, and by the second quarter of 2020, it had dropped from 68 to 65.

[rake]

Oh no, an estimated 10% drop in prices after a 207% increase in the last 20 years. These poor poor home owners!

[TheTwinn]

You know it's bad when under 35's are hoping for a housing crash so they can finally get on the ladder themselves

[Duncan]

My parents paid £65, 000 for a 3 bed semi detached, that same house is now worth £250, 000. There is absolutely zero chance of me ever owning property.

[tanyapavlova]

It will be interesting to find out how the fall is spread between the different types of housing, like say entry level homes vs semi-detached

[beaversforlife]

I don't live in the UK but I face a similar problem in Malta. Me and my brother will face a big challenge in finding a house or even a home. Prices for a house average at about 450k. One may opt to rent an appartment but thats not cheap either. My father tells me just 20 years ago, houses were 200k cheaper than they are today and about 10-12 years before that, houses costed about the same as a car.

[HessionDrasha]

If the 30% crash mostly comes off the most expensive housing, that's not good enough. We need 200k houses to go down to 160, to give back the missing bottom rungs of the ladder. To destroy the captive rental market and force it to be competetive, instead of extortive.

[EpicGamingDwarf]

wait so, prices are falling but interest rates are rising, meaning loans are less affordable for lower income people?
wouldnt this actually cause a shrinking of middle class home owners, with a lack of increase in lower class home owners, leaving only upper class people being able to afford the upfront costs or interest rates?

[davidmcintyre]

The housing bubble has to burst simply because those sitting on properties at the moment planning to use the capital raised from the sales to pay for their old age care bills will not be able to sell these properties to the younger generation because the vast bulk of the younger generation through reasons of rent and rent hikes and wage stagnation cannot afford to save for a deposit. Therefore a lot of these houses being sat on by boomers will either not raise the hoped for sum or will prove unsaleable

[MrLittlecat]

For the future of next generation... it has to burst!

[KaitlynFedrick]

I'm beginning to think treating housing as a commodity was a mistake

[DorathyJoy]

The effects of the downturn are beginning to sink in. People are being impacted by the long-term decline in property prices and the housing market. I recently sold my house in the Sacramento area, and I want to invest my lump-sum profit in the stock market before prices start to rise again. Is now the right moment to buy or not?

[Yutappy]

The decline in house prices isn't because of more affordable housing coming to the market. It's because of the high interest rates forcing owners to sell because they can't afford the mortgage anymore. Landlords are also selling because rent is too high for people to pay and the cost is too high for landlords to just sit on an empty property. I tell you, good news will only come when more affordable housing is put on the market. That is the only time when prices will actually fall. As long as the Conservative is in government then there will never be any good news.

[wisey]

*Home owners* " I bloody hope it doesn't crash "

*Renters* " Pleaaase crash it needs to happen*

Arguably it'll end up being somewhere in the middle and both sides won't be happy.

[jim-esqk]

Help to buy schemes, stamp duty holidays, or even a new round of quantative easing. Every time you think the housing market is finished they manage to find a new way of keeping it artificially propped up. Often with 100s of billions of pounds of tax payers money.

[elindred]

If people are downsizing homes they're not increasing the overall supply of housing; they're shifting the supply to bigger expensive homes which new homeowners can't afford anyway.
Lowering house prices by raising interest rates doesn't make them more affordable; it just makes banks wealthier.
Brits upset at housing affordability ought to consider what pressures are raising housing demand so high despite low birth rates among the English.

[jmiller]

House prices might drop back to 2018 levels before continuing up again.

Some first time buyers with no debt and enough cash saved will benefit from this but it's hardly the gamechanger people in the comments are acting like.

[KEYUNTISER]

"The money goes to landlords as opposed to productive companies" what nonsense. Letting agents, NICEIC electrical certificates, gas certificates, inventories, builders, boiler engineers, roofers, plumbers, carpet cleaners, window cleaners, gardeners, mortgage brokers, solicitors. During construction there are party wall surveyors, all tradesmen, architects, structural engineers, building control surveyors and utilities companies. Landlords employ huge numbers of people and now thanks to the Consocialists we can't put mortgage payments against our tax unlike a "productive company".

[stephanguitar]

Lots of fixed mortgages have not rolled over yet, ie most of them.
Looks like we live in a Tories sweet dream. Housing for their kids, rents collected from everyone else. Same with education, jobs, dental and medical treatment. Run everything that the tories do through this filter and you will understand them. The last Labour government failed to undo these aspects of the Thatcher years. Lets hope starmers future government gets its act together.