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| Gfycat |
Several reports, like this one for instance, lift the lid off the UK’s potential housing crisis amidst what is clearly a red hot housing market.
Quick recap: After lockdown restrictions were lifted, housing demand in the UK has been increasing like crazy, as mortgage approvals touch pre-pandemic figures and sky-high home pricing is a natural outcome, with a 10% annual growth rate.
Context Please...
🔥 Average UK home prices went up by more than £28,000 in the last year. This is equal to the average UK worker’s earnings in the same duration.
🔥 Demand already exceeds supply considerably.
🔥 Prices have also gone up faster than salaries.
🔥 In the meantime, global residential property values have doubled to USD350 trillion.
Is there a collapse coming?
Per some experts, with housing prices at record levels, a minor slump in demand could lead to UK’s housing market going bust, while others highlight inflationary pressures on central banks and moderating growth worldwide.
Though higher demand and sales figures are good news, one hopes that unreasonable price growth does not derail the market in the long run.