November 25, 2022 1:18 pm

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James Nicholson

Here’s what’s going on in the UK Housing Property Market Crash: Following the plunge of the pound against the dollar, lenders including Virgin Money, Halifax, and Skipton Building Society withdrew several of their mortgage deals.

There are increasing concerns that the UK is on the road to another housing market crash. In response to the British pound hitting a historic low versus the US dollar, the Bank of England increased interest rates by 0.5 percentage points to 2.25%. Due to the unstable market and rising rates, numerous mortgage lenders have withdrawn their deals.


Is a UK Property Market Crash Possible?

In this market downturn, if you’re unsure whether to buy or sell a house right now, keep an eye on what’s going on. The UK real estate market experienced the so-called mid-cycle wobble in 2020. There comes a point where some people start to worry that a real estate crash is imminent.

The UK real estate market was then, very literally, stuck in time as we endured the biggest epidemic the modern world has ever known.


Will the housing market crash in 2022?

More and more people are speculating that the housing market may collapse in 2022. Households are struggling as they attempt to pay for rising electricity and gasoline prices as well as mortgage payments due to high-interest rates and the cost of living problem. By the end of 2022, the Bank of England expects UK inflation to reach 13%.

Concerns have been raised that buyers will be turned off by rising interest rates and rising inflation. Homeowners with fixed-rate mortgages will also find it difficult to get similar cheap rates when their contracts expire. In the UK, there are 1.8 million families with fixed-rate mortgages.


How to make money in a housing market crash:


In certain regions, the value of homes is decreasing instead of rising like it used to. However, you may still make money in a declining housing market if you take extra precautions, do your research, and go your own way. Here are strategies to achieve it:


1. Property Auctions 

The advantages of purchasing at an auction include having more options and perhaps getting a better deal. In comparison to buying traditionally, there may be less competition to buy an auction house, but you will also be dealing with a different group of possible buyers—often, seasoned investors.

There are many stories of homes being purchased at auction for far less than market value, and such deals do happen. However, purchasing property at an auction usually carries a higher level of risk than doing so the conventional way. Due to this reality, it is crucial that you are knowledgeable about the operation of real estate auctions and cautious when choosing the properties you want to bid on.


2. Direct to vendor property deals 

Approaching the seller directly – is it a good idea? 


  • Avoid paying auction or estate agent fees to save money.
  • Deal directly with the home seller to expedite the deal.
  • If the home seller is in a hurry to sell the house, negotiate a better price (and if the seller avoids commission fees, they may reflect in the agreed sale price)
  • Avoid competing bids or purchasers by avoiding third parties.



  • Some home sellers might not feel comfortable marketing their house themselves.
  • Requires the purchasers to put in additional effort, such as reaching out to them, making offers, scheduling inspections, etc.
  • If the home seller thinks it’s unethical or a bad idea to bypass their agent or auction business, contacting them directly may alienate them.
  • To ensure a fair purchase, the buyer must have some real estate knowledge and strong negotiating abilities.


3. House Flipping

With the proper planning and execution, flipping a house can still be a profitable business even when housing prices are stagnant or declining. It is also necessary to consider whether or not home prices are declining. This indicates that you will require expert guidance from contractors, real estate agents, and home inspectors.

There is still money to be made, even though not everyone is in a position to invest in a downturn in the real estate market. And just like with any investment, it’s critical to conduct thorough research and seek guidance from industry experts. Any economic downturn has a bright side.



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