Amid the anticipated rise in interest rates, Jonathan Rolande, from House Buy Fast warned of a crash in the market within the next decade. While wages have stagnated for a prolonged period of time, house prices have continued to rise with Halifax reporting the average cost of a home standing at £262,954 this year. However, the National Association of Property Buyers commissioned a survey which found that property prices could rise to £290,700 next year.
Amid these staggering prices, Mr Rolane told Express.co.uk that a house market crash in the next decade has now become “likely”.
He said: “I would say, yes, it is likely.
“But it might be for some reason that we haven’t seen yet such as you know, we didn’t see for see Covid or the credit crunch of 2008.
“Or, you know, huge interest rates in 1991.
“I think it was under John Major when the interest rates went up 15 percent overnight.
“So yes, it will be for a reason that we can’t foresee.
“If it wasn’t affected by external events, some terrible catastrophe, the prices would just continue to go up and up.”
Away from a housing market crash, the sector also faces the impending threat of a sharp rise in interest rates.
A jump that size has not been seen since before the housing market crash in 2008.
Due to this, some lenders have already increased mortgage repayments.
Barclays increased its two-year fixed rate from 1.17 percent to 1.52 percent, increasing the cost on a typical £200,000 mortgage by almost £400 a year.
These high rates will hit those on variable rates going forward.
Laura Suter, of AJ Bell, said: “Mortgage providers don’t hang around when it comes to passing on rate rises, so anyone on a tracker deal will see their costs go up immediately.