UK House Price Decline Resumes as Headwinds Increase

The video discusses the ongoing economic downturn in the UK, driven by rising interest rates and repeated inflation shocks. It highlights the impact on mortgage borrowers, with a significant portion of rate hikes yet to affect the market. The Bank of England's monetary policy and its lagging effects are examined, alongside political challenges faced by Prime Minister Rishi Sunak. The video also covers market reactions, including the withdrawal of mortgage deals and unexpected changes in house prices.

What is the predicted peak interest rate that could lead to mortgage distress in the UK?

• 5.5%

• 5.0%

• 4.5%

• 6.0%

Why is the impact of interest rate hikes on the housing market expected to be delayed?

• The majority of borrowers are on fixed rates

• Interest rates are expected to decrease soon

• The Bank of England has not implemented the hikes

• Most borrowers have variable rates

What is Prime Minister Rishi Sunak's top priority regarding the economy?

• Increasing home ownership

• Halving inflation by year end

• Reducing interest rates

• Boosting consumer spending

What unexpected trend was observed in the Bank of England's mortgage approvals data?

• A drop in mortgage approvals

• A rise in mortgage approvals

• Stable mortgage approval rates

• A surge in new mortgage applications

What is the predicted trend for house prices according to Bloomberg Economics?

• A significant rise

• A double-digit drop

• Stable prices

• A slight increase