Merryn Talks Money UK Housing Jitters, Market Moves, and "Psychic Wealth"
Nov 14, 2025
The hosts dive into the precarious state of the UK housing market, highlighting how falling mortgage rates may not ignite property prices amid uncertainty. They explore why political factors deter high-end buyers while mid-market movers keep pushing through. A discussion on how sluggish GDP is oddly paralleled by the FTSE’s rally raises eyebrows. Lastly, they delve into the concept of 'psychic wealth' during market bubbles, drawing comparisons between today’s AI enthusiasm and past financial frenzies.
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Mortgage Cost Still Drives UK Prices
- UK house prices depend heavily on the price of mortgage money and recent falling mortgage rates may steady prices.
- But uncertainty around taxes and the budget keeps buyers cautious, limiting big gains.
Uncertainty Offsets Lower Rates
- Economic and tax uncertainty reduces willingness to pay premiums for property even as rates fall.
- Modest nominal growth still leaves house prices flat or lower in inflation-adjusted terms.
Landlord Regrets Versus Equities
- A landlord who bought a London flat in 2016 found rental income and taxes left him worse off than working minimum-wage hours.
- He concluded he should have sold and invested in equities instead of being an amateur landlord.
