According to the telegraph, analysts have warned that UK house prices will experience a severe price drop in 2016.
Asset prices around the world soared as central bankers embarked on the greatest money printing experiment in history. While much of that money flowed into the stock market, a great deal also found its way into house prices. What we are now witnessing on trading screens around the world is the unwinding of the era of monetary excess, and house prices will not escape the fallout.
With The UK buy to let sector especially undergoing a big and drastic change.
A large portion of the demand for UK housing will fall away as the benefits of buy-to-let have effectively been killed off in recent budgets.
George Osborne slapped a huge tax increase on buy-to-let in the summer Budget, which will take effect from 2017 onwards. The removal of mortgage interest relief was the first stage and was followed by hiking stamp duty four months later in the November review.
image from telegraph.co.uk/Peter Macdiarmid/Getty Images