Who Would a Housing Crash Hurt? | | Matteo Tiratelli: Nothing says "crisis" to our political elite like a house price crash. Margaret Thatcher's right to buy scheme, introduced in 1980, promised private property and asset ownership to millions. And since then, rising prices have been the motor for economic growth and personal enrichment in Britain. But the storm clouds are gathering.
Around the world, housing markets are starting to creak. In Canada and Sweden, prices are down 8% since February. In New Zealand, they've fallen by 12% since their peak in 2021. In the US, transactions have started to slow and the pressure on prices in big cities is growing.
Britain's not at that stage just yet. But Halifax and Nationwide are reporting that monthly house price growth has started to turn negative, and low-deposit mortgages are being rapidly withdrawn from the market. Spooked by these global headwinds, many experts are now predicting steep falls over the next year.
Experts are predicting large falls in house prices over the next 12 months: Knight Frank -5%; Rightmove -7%; HSBC -7.5%; Bloomberg -10%; John Charcol Ltd -10%; Fox Davidson -10%; Panmure Gordon -14%; Credit Suisse -15%; Capital Economics -15%.
The story behind this downturn is simple. Coronavirus-related supply chain issues and the spike in energy prices have driven double-digit inflation, provoking a cost of living crisis for millions. Central banks then responded by raising interest rates, which had sat at rock bottom since the 2007 financial crisis. And, as interest rates have gone up, so too have mortgages. This huge jump in monthly mortgage payments will mean even people who have managed to save up for a deposit won't be able to afford a home, driving demand and prices down. | |  | ANALYSIS Austerity 2.0 is Another Con Job. Don't Fall for It by James Meadway
The government is laying the groundwork for another round of cuts to keep big finance happy. Read more... |  | REPORT A Union in Lebanon is Supporting Armed Bank Holdups
by Habib Battah
A union in Lebanon is representing people who are marching into banks with real or toy weapons to demand their money. Habib Battah reports. Read more... | | Back independent journalism from £1 per month. | | | It's been a conscious editorial decision to publish reporting and analysis that considers what it takes to build a society that works for the everyone. You won't find articles like this in the mainstream media at large. Billionaire funders and advertising partnerships define what is, and is not covered - and they certainly aren't interested in building a fairer society.
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