How To Invest

The Collapse of the UK Housing Market May Be Coming

A perfect storm is brewing that could send British home prices down 40%.

Residential houses in Frome, UK. — Residential houses in Frome, UK.
Photographer: Jason Alden/Bloomberg

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By Sommer Saadi and Merryn Somerset Webb

February 17, 2023 at 5:00 AM UTC

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The UK housing market is not in a good place. Mortgage rates are up, buyers are disappearing and so are sellers. The former don’t want to dump money in a falling market, and they can’t afford mortgages at current prices anyway. The latter don’t want to accept that prices are falling in the first place.