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:
- Top temples to visit in India you must visit atleast once in a lifetime
- Top 10 adventure sports across India: Where to experience them in 2024
- Market recap: Valuation of 6 of top 10 firms declines by Rs 68,417 cr; Airtel biggest laggard
- West Bengal Elections: Rift among INDIA bloc partners triggers three-cornered intense contests
- Angel Investing Opportunities
- Nothing Phone (2a) blue edition launched
- 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