Many Happy Returns Britain's Slow-Motion House Price Crash
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Apr 29, 2026 A deep dive into the UK’s slow-motion housing correction and why nominal prices hide real-term falls. They explore regional splits with London diverging from the rest of the country. Mortgage refinancing risks and the wave of short-term fixes get close scrutiny. Builders, leasehold and flat-specific problems are examined alongside shifting landlord behaviour and construction pullbacks.
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Seller Refuses To Drop £850k Asking Price
- An i newspaper story described a 70-year-old refusing to cut the asking price on an £850,000 home out of pride and grievance with government policy.
- Michael Pugh uses this anecdote to illustrate UK householders' price-anchoring and denial of market signals.
South East Re Rated More Than Rest Of UK
- The house price to earnings ratio peaked around 8x and has only modestly fallen to ~7x, with the biggest downward re-rating in the most expensive regions.
- Ramin and Michael draw a geographic divide: London/southeast re-rate most while rest of UK holds up or rises slightly.
Real Terms Correction Hidden By Nominal Stability
- UK nominal house prices are near their 2022 peak but have fallen 15–18% in real terms after adjusting for inflation.
- Ramin Nakisa contrasts nominal recovery with real-term correction using different house price indices and inflation adjustments.