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The UK Housing Market: A Place of Your Own?

Is the housing market about to crash?

As usual in cases of market uncertainty, opinions vary quite widely. Some observers believe that a combination of five interest rate rises in the past 12 months and warnings from the Bank of England are having the desired effect. House price inflation has declined. But this doesn't equate to a crash; it simply means that people's expectations of inexorable price rises have changed.

Image: Estate agents are already seeing a cooling of the housing market.

Sellers have become reluctant to ask top prices for their properties. A market that seemed to rise by 20% every year has turned, and buyers have seen houses already on the market become more affordable, as sellers sense that they must moderate their asking price, especially if they want to move quickly. House market professionals such as the Council of Mortgage Lenders and the Building Societies Association believe that a cooling of the market is the most likely outcome of current uncertainty.

See the BBC new article, UK interest rates remain at 4.75%, for more detail.

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