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The Masked Tulip

Oversupply Has Been Common Factor In House Price Crashes

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Letter in the FT today regarding house prices:


The letter is in response to this article of last week;

UK house prices: falls to come


True, near-zero interest rates have seduced those with good credit and a deposit into the market. That has created an artificial floor which looks wobbly. The Bank of England came close to raising interest rates last month. If the economy holds up, increases this year appear certain. (If recession returns, housing demand would be damaged anyway). The effect of higher rates on housing could be significant. The 75 basis point increase expected by the market will raise average mortgage payments 8 per cent to £722 per month, estimates Capital Economics – enough to reduce offering prices.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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