How UK House Prices Could Fall By 30%

Leaders with Francine Lacqua

Bloomberg

Management, Business, Careers, Entrepreneurship

4.6 • 64 Ratings

🗓️ 29 December 2022

⏱️ 26 minutes

🔗️ Recording | iTunes | RSS

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Summary

In a conversation earlier this month, senior reporter John Stepek made a prediction: House prices in the UK will continue to fall—and fall. On this week’s episode of In the City, he joins David Merritt to give his reasoning. Stepek explains that rising interest rates and stubbornly high inflation are combining to push home prices ever downward. But that’s not the worst of it. When it comes to the most critical factor underlying the health of the UK economy, there’s a bigger threat than falling house prices, said senior reporter Philip Aldrick. It’s unemployment. The reporters also discuss their expectations for consumer spending, real wages, and the Tory government’s chance of dodging a general election in 2023.

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0:54.9	now on Apple, Spotify, or anywhere you listen. Well, I, if you say, if you, put this way,
1:01.7	if we've gone back to 2020, March 2020, and they say, we're going to put interest rates up from
1:06.8	1.5% to 4.5% and you said prices were only going to fall by 10% in the next year.
1:12.9	People would think you were optimistic.
1:14.5	So actually, 30 does not sound, it's not crazy.
1:18.0	Put it that way by any means.
1:20.5	Okay, so effectively, John, just for the record here, everybody,
1:23.5	John is predicting a half price fall of significantly more than 30%. Not significantly more than 30%.
1:30.4	That's a hostess to fortune.
1:34.4	But certainly, I mean, definitely reporter and author of the Money Distilled Newsletter, John Steppeck, in a Twitter space, one of our best ever performing Twitter space.
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