Crisis in the real estate market threatens financial stability

London The crisis in the UK property market is deepening – the latest emergency call comes from the Financial Conduct Authority (FCA). The UK’s main financial regulator warned in a letter to a parliamentary committee this week that more than 750,000 mortgage borrowers could default on payments in the next two years. By mid-2022, 200,000 borrowers were already in arrears.

This is just one sign of the downward spiral that the UK property market is in. House prices, which have been falling for four months, could fall by at least 8 percent overall this year, according to Halifax, the island’s largest provider of mortgages. Other experts such as Chris Rhodes from the Nationwide building society fear a slump of up to 30 percent.