The UK Housing Market CRASH has STARTED and now the BIG QUESTION that everyone is asking is HOW MUCH will House Prices DROP in 2023?
House prices can go UP and DOWN for a wide variety of reasons, however, the most important factor is AFFORDABILITY. It doesn't matter how many people want to buy a house if they can't borrow enough money from the bank.
Compared to the low 2% interest rates we have seen over the past decade, the average First Time Buyer has recently seen their buying power reduced by between 20% (at 4% mortgage rates) and 35% (at 6% mortgage rates).
With the Bank of England expected to hike interest rates again later this year, it is going to be a long time before mortgage interest rates start to come back down.
The current UK property market peaked in September 2022 and is now expected to experience a substantial house price correction.
At the time of recording this video, the average fixed rate 2 year and 5 year mortgages were above 6%. If mortgage interest rates stay at this level we could see a house price crash of up to 35%!
Let us know what you think in the comments below, how much will house prices drop in 2023?
