The UK housing market is facing its biggest test in 70 years

Low-cost mortgages have inflated house prices and the housing market, but this trend is set to go into reverse as the cost of borrowing rises says Dominic Frisby.

house and piggy bank on balance
(Image credit: Getty Images)

Despite being built of bricks, a house is, in many ways, a financial asset. This is because, for the most part, we use finance - debt - to buy real estate. And debt has been propping up the UK housing market since the 1950s. 

The influence of mortgages on the housing market

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Dominic Frisby

Dominic Frisby (“mercurially witty” – the Spectator) is as far as we know the world’s only financial writer and comedian. He is the author of the popular newsletter the Flying Frisby and is MoneyWeek’s main commentator on gold, commodities, currencies and cryptocurrencies. He has also taken several of his shows to the Edinburgh Festival Fringe.

His books are Daylight Robbery - How Tax Changed our Past and Will Shape our Future; Bitcoin: the Future of Money? and Life After the State - Why We Don't Need Government

Dominic was educated at St Paul's School, Manchester University and the Webber-Douglas Academy Of Dramatic Art. You can follow him on X @dominicfrisby