UK House Prices Suffer Sharp Declines on Mortgage Costs

The video discusses the recent decline in UK house prices, highlighting a 1.4% drop as reported by Nationwide Building Society. It explores factors such as the pandemic, mortgage rates, and economic policies affecting the market. The Office for Budget Responsibility forecasts a 9% drop over two years, but factors like a strong banking sector and fixed-rate mortgages may mitigate this. Historical trends suggest house prices fall quickly but recover slowly, taking about eight years to correct.

What is the current trend in the UK housing market according to the Nationwide Building Society?

• The gap between asking and agreed prices is narrowing.

• Mortgage approvals are increasing.

• House prices are experiencing a correction.

• House prices are rising rapidly.

Which of the following factors is contributing to the 'perfect storm' in the UK housing market?

• Decrease in mortgage rates

• Increase in global interest rates

• Reduction in taxes

• Decrease in cost of living

What is the forecasted drop in house prices over the next two years according to the Office for Budget Responsibility?

• 5%

• 9%

• 15%

• 20%

Which factor is NOT mentioned as a potential mitigator against the predicted drop in house prices?

• Low mortgage debt among the poorest households

• More fixed-rate mortgages

• Increase in unemployment

• Well-capitalized banking sector

According to historical data, how long does it typically take for house prices to correct themselves?

• Ten years

• Eight years

• Four years

• Two years