Is The Housing Bubble About to Burst?
The turn of a brand-new year hasn’t necessarily spelt great news for everyone, but for those who are thinking of buying or selling a home, there’s nothing but the tension in the air. After a frustrating end to 2022, many have wondered if an even bigger UK house price crash is coming. Is the housing market going to crash, leaving millions of buyers and sellers alike in a mess?
You Should Expect Prices To Go Down
Whether or not there is a UK housing market crash is one thing, but the simple reality is that you should absolutely expect to see a decrease in prices according to many market experts. Most have said that prices will continue to fall over the course of the year, and some have said that prices might fall as much as 25%. Some have warned, though, that the price fall along with the increase in interest rates may lead to a property crash in the UK. In fact, many experts are currently looking for signs the housing market will crash.
Will the Housing Market Crash in the UK? It’s Unlikely
Despite the overwhelming number of concerns about house prices in the UK and a crash, the reality is quite different when it comes to an actual housing crash UK buyers and sellers experience. While a UK property market crash would be devastating to everyone and the economy as a whole, a housing market disaster like that one is fairly unlikely. Instead of a UK property crash, most experts have suggested that UK buyers and sellers will likely see prices begin to steadily level out while incomes are likely to go up, and that spells anything but a house market crash in the UK.
Higher Rent Costs Could Actually Make House Price Crash Predictions Come True
There is, though, one way that the question “Will the housing market crash in 2023 in the UK” may actually come true, though, and it has everything to do not with the housing bubble itself, but with rent costs instead. Over the past few years, rent costs have increased significantly, reaching new highs, which leaves many people who should be on the property ladder paying 50 – 60% of their overall income, and that translates to a real problem that could spell a UK housing crash – not enough money saved for deposits.
Those high rent costs aren’t just going to create a UK house crash because they’re expensive, though. They may also do so because landlords can then create a UK house bubble, which means there aren’t really enough houses for people to buy anyway. In that scenario, a market crash coming would be primarily caused by landlords who can get cheaper mortgages for properties that they intend to let.
Where Real Estate In London Fits into the Housing Bubble in the UK
Another often overlooked factor in the question of “Is the housing market going to crash in the UK” in London. The UK housing bubble often starts and ends with prices in London, and a London house price crash probably isn’t going to happen. The reality is that the housing market in the UK could crash, but London house prices might remain the same just because there are so many wealthy investors who currently have a property in London, and they continue to prop up the prices given the perfect location of their current investments. If you’re asking yourself “When will the housing market crash UK-wide?” the answer is one thing. If you’re asking yourself “Will there be a housing crash in London,” though, the answer is quite another. A house market crash in London is quite unlikely in the near future, so don’t get your hopes up that scrimping and saving may spell a bargain property in that market area.
The Bottom Line
Is the housing market going to crash? Probably not. What will happen, though, is that prices in areas outside London will likely to go down a bit more before they finally begin to stabilise and people can start thinking about saving for a home once again.
Even if the housing market does crash, however, if you need to sell your home fast, there are still a number of different options available to you.