House prices were going to fall anyway - the Bank of England is just helping them along

The Bank of England is making it clear that the era of cheap credit is well and truly over While it’s unlikely that there will be a housing market crash like the one seen after the 2008 global financial crisis, a downturn is likely 🏠 Victoria_Spratt

And, if they do, it will be in no small part because of rising interest rates.

And, while 0.25% might not sound like a lot, the upward trajectory of interest rates will have an impact on the housing market where anyone with a mortgage is watching the cost of homeownership increase beyond any point since the 2008 global financial crisis. The long-term impact of making homeownership more expensive, at a time when house prices have hit historic highs while wages have not, is being overlooked in the Bank’s quest to control inflation – currently at 10.1% – through interest rate rises.

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