Urquhart Stewart: Is the UK heading for a property crash?

The UK may be about to experience its first real property crash, according to Justin Urquhart Stewart, founder of Seven Investment Management (7IM).

If the Bank of England opts to raise interest rates, long-term tracker mortgages may be affected more than property investors realise, he said. "We as yet have not seen a real property crash in the UK, but if affordability continues to move away from buyers, then at some stage there will be a painful reaction," he said. Urquhart Stewart (pictured) pointed to the Bank of Ireland raising its mortgage rates from 2.99% to 4.99% last week, which will increase monthly repayments on £100,000 mortgages by as much as £160. "Many on fixed term mortgage arrangements [in the UK] will have alre...