Britain's housing market is one interest rate hike away from a crash
Inception
This is because housing across the UK is becoming increasingly unaffordable and the higher interest rates go, the higher it costs to service debt.
HSBC recently released its "UK Housing Market Chartbook (July)" which had nearly 50 charts that summarised the state of Britain's property sector.
Nestled within it are some pretty startling charts that show how unaffordable housing has become in Britain.
Now, the naysayers that believe property prices will remain high no matter what say that the fundamental supply and demand balance will always keep prices propped up. After all, if there are too many people looking for a house, but not enough to go round, prices will always be buoyant.
Plus, interest rates have remained at a record low of 0.5% since March 2009 and it looks like rates will either stay the same or be cut further, thanks to the economic uncertainty surrounding Brexit.
However, unless households have heaps of savings tucked away, or a wage rise, a hike in interest rates could tip a lot of people over the edge.
Here are the charts that show the dangerous situation Britain's housing market is in:
- Global stocks rally even as Sensex, Nifty fall sharply on Friday
- In second consecutive week of decline, forex kitty drops $2.28 bn to $640.33 bn
- SBI Life Q4 profit rises 4% to ₹811 crore
- IMD predicts severe heatwave conditions over East, South Peninsular India for next five days
- COVID lockdown-related school disruptions will continue to worsen students’ exam results into the 2030s: study
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market