Alarm Bells Ring for UK Housing as Signs Point to Falling Prices

By Neil Callahan
BNN Bloomberg
August 26, 2022
Category: Finance & Economics
Region: International

UNITED KINGDOM — The end of cheap money. Soaring energy prices and crippling inflation. A recession on the horizon. For the UK housing market, that toxic mix is fueling concern that a sharp correction is on its way. Cracks are already appearing amid the mounting pressures. Home values in London are flat or falling in almost half of the city’s boroughs. …Money managers have already signaled their worries, with shares in some homebuilders down more than 35% this year, lagging the broader stock market. That echoes a selloff at the end of 2006 and into 2007 that preceded the decline in house prices that accompanied the financial crisis. “The outlook for both rates and real incomes is as bad as I can recall since 1960, as are consumer confidence indicators,” said Paul Cheshire at London School of Economics. 

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