Property News · August 8, 2022

Are slowing house prices good news for Britain's generation rent? Don’t hold your breath | Laurie Macfarlane


It’s tempting to think buying a home will become easier, but economic turmoil will make would-be owners worse offAmid the gloomy economic data released last week, one statistic caught many analysts by surprise. Halifax, the country’s largest mortgage lender, reported that UK house price growth has not only slowed down but turned negative. Just one month ago, the same bank had announced that prices had soared to a record high. Could this dramatic shift mark the beginning of the end for the great British housing boom?After years of watching homeownership slip further out of reach, it might be tempting for generation rent to greet the news of a house price slowdown with open arms. But it would be premature to reach for the champagne. Even if house prices continue to fall, any potential benefits will almost certainly be offset by other economic forces. There are also good reasons to treat this data with caution. The average price fell by just £365 in July – or 0.1% month on month – and still remains more than £30,000 higher than the same time last year. The figure also only reflects data from one lender, and represents an average of prices across the UK.Laurie Macfarlane is an economist and writer. He is co-author of Rethinking the Economics of Land and Housing Continue reading…

Source : theguardian.com
Read more…Are slowing house prices good news for Britain’s generation rent? Don’t hold your breath | Laurie Macfarlane

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