Why A Real Estate Death Spiral Could Be Good News For Generation Rent

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This note is about the invisible hand that props up the UK housing market, making it unaffordable for young people to get on the housing ladder.

We question why retail mortgages are more profitable than other credit that carries significantly higher risk weightings. And we estimate the earnings impact on banks should regulatory change arrive and residential real estate be treated like any other asset class.

Now policymakers are running out of runway, their toolbox exhausted by years of dovish monetary policy, could the solution to Generation Rent's woes be the one thing everyone dreads - the mother of all property crashes?

Edward Rhys