JLL has issued its latest UK house price forecast, predicting that the housing market is set for a correction, rather than a crash, as mortgage borrowing costs rise.
The company highlights that in the last 15 years, the UK has seen property prices reach new highs on the back of a period of record low borrowing costs. Never prior to 2008 had the UK base interest rate dipped below 2%. But in the period since the Global Financial Crisis (GFC) it has averaged 0.5% and hit a low of 0.1% during Covid.
However, JLL says that events of the past year, and more so the past six weeks, have led to a growing set of predictions that a UK house price crash is now imminent.
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