Such tosh. "A higher-rates world would also improve housing affordability, helping young, would-be homeowners. Based on current interest rates, the house-price

Such tosh. "A higher-rates world would also improve housing affordability, helping young, would-be homeowners. Based on current interest rates, the house-price-to-earnings ratio could fall to around 5.6 – the lowest level seen since 2000" The cost of a mortgage for such people has increased even higher. Maybe in time the cost of mortgage payment will return to the same number of weeks. If you wanted to buy an average £300k house in August 2022 on a 2% 90% 30 year ltv mortgage, you'd need a £30k deposit and £998 a month. AWE was £618 then, so that's 48.5 weeks deposit and 1.6 week a month payment If you wanted to buy a house today with 49 weeks deposit (£30,300) and a 1.6 weeks a month payment (£1051) at 6% you'd be able to borrow £170k, so afford a house of £200k. Houses haven't come down by 33%, nor will they - the supply isn't there. Most Landlords for example do not have a mortgage, but are seeing even higher rental income. If the average £300k house from last year was up for sale for £200k today, it would be snapped up by cash buyers and rented out to a captive market. All high interest rates do is reduce spending of people with variable loans (typically mortgages). They do nothing to slow pensioners with massive savings (from downsizing) spending their savings. I guess it might mean landlords will spend the money on expanding their portfolio as deals come up. If you want to solve the housing problem, you need to build more. If you want to redistribute household wealth, stop taxing strivers more than havers, merge NI into income tax for example. It's crazy that a house owner with 30k a year in dividends keeps £2200 a month post tax post housing, more than someone working for 70k a year in the city paying 2k a month in rent