The UK housing markets long-term growth story seems to hit a wall. Since early-2000s prices jumped from £85k to £291k (a huge 342% rise)‚ but now the real-estate party looks done
In southern England more than half of full-time workers cant buy even basic 2-3 bedroom homes. Richard Donnell from Zoopla points out: “buyers need 50% above-average income to get property here“
The mortgage situation looks tough – rates jumped from 2.34% (back in 2021) to 5.5% today. A £500k loan that used to cost £2‚204 monthly now needs £3‚070 (which makes family-sized homes hard-to-get without help from parents)
Housing has been in a bubble to a massive extent in some parts of the country
Property listings show clear signs of market cool-down:
- 24% of sales had price cuts in 2022
- 36% needed price drops in 2023
- 38% faced reductions in 2024
The markets future doesnt look bright: wage growth will hit zero by 2026-27 (as per govt forecasts); stamp duty costs might double by 2030‚ and owner-occupier costs keep rising at 7.4%. Charlie Lamdin from BestAgent says: “perfect time to sell was 2 years ago – now larger homes owners are confused why they cant sell even with 20% price cuts“