UK House Prices have been FALLING for 5 MONTHS and are already DOWN 5% from their peak! The big question is where do we go from here and who is going to see the BIGGEST house price crash overall? A UK house price crash will impact millions of people, but some will see larger house price falls than others. In previous housing market crashes, the size of the fall largely depended on the geographical location of the property. While this is likely to be true if house prices continue to fall in 2023, I think new build properties are going to experience larger price drops than comparable existing properties. This is largely due to the fact they were overpriced when they were sold. For more than a decade, new build properties have been sold at a premium (often in the region of 20%) largely due to the government backed Help to Buy equity loan scheme. In 2021, Help to Buy was used in over 60,000 new build purchases - that is over 25% of all new build sales in that year. This scheme closed to new applicants in October 2022 and any outstanding loans must complete on a new build property by the end of March 2023. When you combine the end of Help to Buy with increased mortgage costs, high inflation and house prices already falling, it is very very difficult to see where any new build demand is going to come from. Large homebuilders such as Taylor Wimpey, Persimmon and Redrow are already reporting lower demand, more cancellations, and price reductions. What do you think? How much will house prices drop in 2023 and will new builds / large property developers be hardest hit by this housing market crash? Let us know in the comments below....(read more)
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The UK housing market has been booming for the past few years, with prices reaching record highs in many areas. However, the recent economic downturn has caused many experts to predict a major house price crash in 2023. This could have a devastating impact on homeowners, investors, and the economy as a whole. The most vulnerable group in the event of a house price crash are likely to be first-time buyers. Many of these individuals have taken out large mortgages in order to purchase their first property, often stretching their finances to the limit. If house prices fall, they may find themselves in negative equity, owing more on their mortgage than the value of their property. This could lead to difficulties in finding a buyer for their property, or even in meeting their mortgage repayments. Investors are also likely to be hit hard by a house price crash. Many investors have taken out large loans in order to purchase multiple properties, with the expectation that house prices will continue to rise. If prices fall, they may find themselves unable to repay their loans, and could be forced to sell their properties at a loss. The wider economy could also suffer if house prices crash. A fall in house prices could lead to a decrease in consumer spending, as people become less willing to take out loans and mortgages. This could have a knock-on effect on businesses, leading to job losses and a decrease in economic activity. It is impossible to predict the future of the UK housing market, but it is clear that a house price crash in 2023 could have a devastating impact on homeowners, investors, and the wider economy. It is therefore essential that the government takes steps to ensure that the housing market remains stable, and that those affected by a crash are protected. https://inflationprotection.org/who-will-be-hit-the-hardest-uk-house-price-crash-2023/?feed_id=72276&_unique_id=63f3abbdaa3fa #Inflation #Retirement #GoldIRA #Wealth #Investing #housepricecrashuk #housepricesuk #housingmarket #housingmarketcrash #howmuchwillhousepricesdropin2023 #inflationhedgeinvestments #inflationprotectionstrategies #isthehousemarketgoingtocrash #protectionagainstinflation #ukhousepricecrash #ukhousepricepredictions #ukhouseprices #ukhouseprices2023 #ukhousepricesforecast #ukhousingmarket #ukpropertymarket2023 #wealthprotection #willhousepricescrash #willhousepricesdropin2023 #willhousepricesdropuk #willhousepricesgodownin2023 #willthehousingmarketcrashin2023 #InflationHedge #housepricecrashuk #housepricesuk #housingmarket #housingmarketcrash #howmuchwillhousepricesdropin2023 #inflationhedgeinvestments #inflationprotectionstrategies #isthehousemarketgoingtocrash #protectionagainstinflation #ukhousepricecrash #ukhousepricepredictions #ukhouseprices #ukhouseprices2023 #ukhousepricesforecast #ukhousingmarket #ukpropertymarket2023 #wealthprotection #willhousepricescrash #willhousepricesdropin2023 #willhousepricesdropuk #willhousepricesgodownin2023 #willthehousingmarketcrashin2023
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