Omicron + Interest Rate Rise = 2022 UK House Price Crash?

The Bank of England just became the first major central bank to officially raise interest rates since the start of the pandemic, with an increase in the base rate to 0.25%.

This is a direct response to inflation hitting 5.1% - the highest its been for more than a decade.

The double whammy of the inflation and the hike in the interest rate are going to have ramifications for the UK Property market, and in this video I am going to break them down, talk about what it could mean in the short and long term, and give you some options for what you can do about it.

The raise came as a surprise - there was a widespread opinion that interest rates would stay low because of the huge Omicron wave that we are seeing here in the UK, with cases potentially hitting 1 million per day by the end of December.

The Bank is effectively saying Omicron doesn’t matter, the softening housing and stock market doesn’t matter, the idea that inflation is transitory is wrong, right now inflation is about to get away from us and we need to address it now before its too late.

So what impact is this going to have on property in the short and long term? The main areas we need to look at to answer this are property prices, and mortgages.

Finally, there is a counter argument which states that the Bank of England have been a bit premature. If the omicron variant and other variants lead to another full lockdown, then England could go back into recession and the Bank of England will have to reverse this again even though the change is relatively small. Time will tell.

Видео Omicron + Interest Rate Rise = 2022 UK House Price Crash? канала James Chajet Property