A house price crash as large as that seen during the financial crisis would not make homes cheaper to buy
House prices would need to fall by a third to cancel out the cost of soaring mortgage rates, new research shows.
Mortgage rates have rocketed so fast in the last few months that even a house price crash as large as that seen during the financial crisis, when values fell by nearly a fifth, would not make homes cheaper to buy if a purchaser needed a mortgage.
Home values would have to fall by 33pc before monthly payments for an average buyer fall back to the level when rates were 2pc, according to exclusive analysis by Hamptons estate agents.
If house prices did not fall, the buyer would have to fund an extra 21pc of the property in cash to keep their mortgage payments the same. On a typical £300,000 home, this would mean an extra £63,000 upfront.