Is the UK Housing Market About to Crash?

The video discusses the UK's housing crisis, highlighting that house prices have risen faster than wages, leading to affordability issues. Factors such as wage stagnation, planning system complexities, and low interest rates have contributed to the crisis. Recent interest rate hikes and inflation have cooled demand, causing house prices to fall. Predictions suggest further declines due to persistent inflation and global energy price impacts. The video explores these dynamics and their implications for the housing market.

What was the average house price compared to the average salary in London last year?

• 10 times the average salary

• 13 times the average salary

• 9 times the average salary

• 12 times the average salary

Which of the following is NOT a factor contributing to the UK's housing crisis?

• The Greenbelt

• Thatcher's right to buy schemes

• Wage stagnation

• High unemployment rates

How do rising interest rates affect the housing market?

• They increase demand for housing

• They make mortgages cheaper

• They have no effect on the housing market

• They reduce demand and increase supply

What is the expected percentage drop in house prices according to the OBR for 2024?

• 12%

• 10%

• 8%

• 5%

How do high energy prices influence inflation?

• They stabilize inflation

• They increase inflation

• They have no effect on inflation

• They decrease inflation

What was the impact of OPEC's recent production cuts on oil prices?

• Oil prices fell to $70 a barrel

• Oil prices decreased

• Oil prices remained stable

• Oil prices jumped to $86 a barrel

What is one potential consequence of high energy prices on the UK's housing market?

• Higher interest rates

• Increased house prices

• More affordable mortgages

• Decreased inflation