Fears for UK property market collapse as US houses crash in value sparking fears:
Property sales in USA plummeted but experts predicted that the UK will be hit harder. Affordability levels are the worst since 1985, in the US. Mortgage rates have hit a 20-year high of 7 per cent, much higher than in the UK. Moreover, transaction in the UK are fairly stable and price declines are still to show up in the official index. Conversely, in the UK a drop of 12% is expected. At the current time, in USA the prices for properties are flat year-on-year. Even though the mortgage rates are lower in UK, the impact will be greater. The problem is the house prices have grown considerably more than wages.
Will this work simultaneously with the cost of living crisis?