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The UK Housing Crisis is Even Worse Than You Think

The UK Housing Crisis is Even Worse Than You Think

UK property ownership has become a luxury reserved for the affluent, squeezing the middle classes and low-income households out of the market. With the cost of a median house at nearly double the median income, affordability issues plague the UK housing market. Recent data indicates a steep decline in house prices due to rising interest rates impacting mortgage affordability. Despite occasional reductions in rates by banks, and the highest level of home loan approvals since October 2022, the housing situation remains dire. Even with a considerable deposit, average earners find themselves committing a significant portion of their income to mortgage payments. Analysts predict further declines in house prices, while builders report falling revenues, reflecting the housing market slowdown. The ramifications extend to increasing numbers of adults living with their parents and a doubling of rented households since 2001. However, the rental market too is becoming unaffordable in many regions.

Credit to : UK Corner

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