How will a recession hit the UK housing market?

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The UK economy is forecast to shrink this year but what will it mean for first-time home buyers?

The Bank of England has warned that Britain will lurch into recession later this year, but how will that affect the housing market?That actually boosted property prices as working from home encouraged both house movers and buyers in a race for space.

"While we shouldn't read too much into any single month, especially as the fall is only fractional, a slowdown in annual house price growth has been expected for some time," said Halifax managing director Russell Galley.But getting to the point where there are plenty of home available to buy at lower prices might not be pleasant.

If they're forced into cutting back on non-essentials then their monthly savings towards a deposit may have to be curtailed.The Bank of England's rate hike leaves borrowers on tracker mortgages or standard variable rates needing to find extra cash to meet their monthly mortgage repayments.Based on a typical 25-year £200,000 mortgage those on an SVR will end up paying an extra £59, according to August figures published by rates analysts Moneyfacts.co.uk.

Thankfully lenders aren't keen to do that so anyone finding themselves in that position does have options. To ease your short-term financial worries you may be able to move to an interest-only loan, for instance, or take a mortgage payment holiday.While any of these will help take some of the pressure off you while you're living on a reduced income, it's important to put your mortgage plans back on track when you find work.

 

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Mean don't fucking buy atm !

Like everything else: the poor will get hit, the rich won't give a shit.

Brexit.

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