A UK House Price Crash is looking more and more likely, but, could these 7 important factors be enough to save the UK housing market?

Almost everyone is expecting a UK property crash (including myself), however, there are a number of things supporting house prices in the UK which may end up proving many of us wrong.

We have been waiting for a housing bubble burst for over a decade and it now looks more likely than ever, yet nothing is certain and the UK property market has defied logic and reason many times before.

Will the housing market crash in 2022 is currently one of the most searched questions on YouTube, so here are my 7 reasons why a UK house price fall may not materialise into a full UK house price collapse:

1) The UK is not building enough new homes to keep up with its growing population and as we head into recession property developers are likely to build even fewer new properties
2) The UK government is likely to support the housing market, they have already announced stamp duty cuts and mortgage support for low income borrowers on universal credit. This may be expanded to a full blown mortgage bailout as UK house prices drop.
3) Immigration is at an all time high with net immigration of over half a million in the past year, this growing demand for homes will help to prop up the housing market.
4) The weak pound makes UK assets attractive to foreign investors, they may be tempted to snap up property after small falls which may prevent a full blown housing crash.
5) High inflation is also driving an increase in wages, if wage growth outperforms house price growth (or decline) then current house prices may become more sustainable.
6) Swap rates and mortgage rates are already coming down after peaking, if they come down further it may help to stabilise the property market.
7) With rental prices at record highs, first-time buyers will be more driven than ever to buy their first home.

Despite these supporting factors, I still think the lethal combination of inflation, the energy crisis, interest rate rises, and increased mortgage payments, will be enough to crash house prices.

Is the house market going to crash in 2023? Let us know what you think in the comments below.

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