Why the British housing market will not recover

UNITED KINGDOM: According to data released this week by Nationwide, house prices have now dropped for five consecutive months, the longest streak since 2009. (Reported by news source)

Values have decreased by 5.6 percent from their August peak, making the typical home worth £15,454 less today than it did then.

Analysts predict that while the current housing market decline won't be as severe as the one experienced during the financial crisis, it will endure considerably longer.

According to Nationwide, housing values declined for 16 straight months during the credit crunch. This time, Oxford Economics researchers predict that the downturn will run for 24 months.

"We believe the considerably bigger number of fixed rate mortgages currently will restrict the decline in prices and make it less steep, but more extended," says Andrew Goodwin of Oxford Economics.

However, homeowners are not always protected by fixed rate agreements. In 2023, an estimated 1.8 million homeowners would have to refinance at substantially higher rates as their contracts expire.