UK house market at lower risk than US

However, the UK housing market is likely to stagnate, with prices falling in real terms but not significantly enough to cause a major crash. Feri’s head of real estate, Wolfgang Kubatzki, says while arrears and possession data is showing an upward trend, levels are still historically low, meaning there will be far fewer distressed sales putting downward pressure on house prices. Kubatzki also points out UK interest rates have risen from 3.5% to 5.75% over the past few years, compared with a rise from 1% to 5.5% in the US, meaning UK borrowers will be less affected by payment shocks. Feri...