Urquhart Stewart: Is the UK heading for a property crash?

Anna Fedorova
clock

The UK may be about to experience its first real property crash, according to Justin Urquhart Stewart, founder of Seven Investment Management (7IM).

If the Bank of England opts to raise interest rates, long-term tracker mortgages may be affected more than property investors realise, he said. "We as yet have not seen a real property crash in the UK, but if affordability continues to move away from buyers, then at some stage there will be a painful reaction," he said. Urquhart Stewart (pictured) pointed to the Bank of Ireland raising its mortgage rates from 2.99% to 4.99% last week, which will increase monthly repayments on £100,000 mortgages by as much as £160. "Many on fixed term mortgage arrangements [in the UK] will have alre...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

Trustpilot