The Housing Crisis Will Leave Thousands of Britons Homeless This Winter

The Housing Crisis Will Leave Thousands of Britons Homeless This Winter

There was a time when it was a British dream to own a home, but that dream has now become a nightmare for many. Thousands of Britons will see the value of their homes plummet as a result of the looming housing crisis. According to a Bloomberg report, the average British household is struggling to keep up with mortgage rates approaching 8%, and many have already lost their homes to mortgage defaults.

On top of that, with buyers priced out and more sellers undercutting their prices to sell properties before the end of 2023, many major cities are already seeing double-digit quarterly falls, such as London, where house prices fell by as much as 15% in the third quarter, as well as Birmingham, and Manchester, which reported a respective 12% and 11% fall over the same period.

The warning signs of a housing crisis are becoming increasingly evident.

In recent weeks, the UK housing market has shown clear signs of crisis, leaving experts worried about its direction. Bloomberg said the market was beginning to “collapse”, while its economists predicted a housing market recession due to rising mortgage rates.

In short: many Britons simply cannot afford to buy a new home because of high housing costs and rising interest payments. As a result, sellers are lowering their list prices. The latest housing market update shows that around one in 10 homes in the UK market fell in price last quarter. This rate is worryingly high compared to the same period last year.

The Worst is Yet to Come

Worse still, more than one in ten homes bought in the last year are worth less than the balance of their mortgage. That is precisely what new reports by real estate information companies show. Since the beginning of 2023, approximately 11% of people who borrowed money to buy homes in 2022 now owe more than the properties are worth.

What’s more, more than one in four purchasers who bought a home in the 11 months of 2023 have properties that are not exactly worth the credits on them, implying that they are as of now underwater on their mortgage loans and in danger of being dispossessed. This is an exceptionally stressful improvement. Since a mortgage payment becomes imminent when it is more than 90 days overdue, rising default rates are an indication that conditions will become even more chaotic. It is feared that a large number of Britons could be affected by dispossession in December.

There Will Be No More Credits

The credit crunch may also play an important role, as higher acquisition costs may also reduce housing affordability. As access to credit becomes more limited, it may influence the number of likely buyers and reduce housing supply. In addition, global financial events, such as continuing international wars, China’s currency meltdown and global food shortages, can impact local real estate markets and influence investor sentiment and certainty.

And finally, the coming property crash will destroy the wealth that many working families have accumulated over decades. This is the saddest part of this crisis, because we can already see the train wreck in slow motion before our eyes. But the Prime Minister and the government will allow it anyway. Only by seizing the bottom 90% of Britain’s wealth will they be able to stop the haemorrhaging caused by the injection of trillions of pounds of aid into the economy from 2020.

Make no mistake. This is a man-made disaster. Their aim is to exhaust all their hard-earned efforts, with the aim of reducing inflation once again.

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