, Columnist
Are the Days of UK Property Booms and Busts Over?
Tougher mortgage regulation in 2014 sought to contain overstretched buyers. Its effectiveness is about to be put to the test.
This article is for subscribers only.
Has the UK property market moved beyond cycles of boom and bust? London house prices soared in the aftermath of the financial crisis but have since largely flatlined. Now real estate throughout the UK is facing stiff headwinds, and the red flags are popping up.
Interest rates are rising and economists expect more increases. Buyer inquiries fell in May after gaining for eight consecutive months, according to the Royal Institution of Chartered Surveyors’s latest survey. An index of housebuilders’ shares has fallen more than one-third since April 2021, though both London and UK house prices hit records this year.