The effects of the Global Financial Crisis, which began in 2007, are still being felt a decade later, and will continue to influence the housing market in the years ahead.
The first of March this year marked the 10th anniversary of my career switch to a housing market analyst. Back then, the housing market was roaring, but within six months of my arrival it had been turned on its head as prices and transactions went into reverse. Fortunately, these two things were not connected. There were much bigger forces at play, forces which continue to shape the market today.
For many, the first-hand experience of the once-in-ageneration events of 2007 and 2008 will be etched into their memory. For twenty-somethings – who’ll be more reliant on the 2015 film The Big Short to understand the cause and impact of subprime lending – the legacy of these events will nonetheless be all too real.
As we discuss in our lead article (p4), what has since been named the Global Financial Crisis (GFC) has fundamentally changed the nature of the UK housing market. It’s made getting on the housing ladder heavily dependent on the Bank of Mum and Dad or Help to Buy, has meant homeowners trade up the housing market less often and has placed much greater demands on the private rented sector.
Source : Savills