Increasing Mortgage Rates, a Cost-of-Living Crisis and Stamp Duty Cut: What’s Next for the UK Housing Market?

Activity in the UK housing market and house prices have remained robust in 2022. Several factors both on the demand and supply sides have kept house prices buoyant (Patel, 2022a), although the growth in house prices has eased this year in part due to the economic turmoil created by the cost-of-living crisis. This Box will evaluate the main data and themes in the UK housing market and explain why we don't think the housing market will collapse, as has been suggested might happen by some.