According to the Bank of England stress-test, this decline is based on an economic upheaval that was caused by the coronavirus disease.

This reduction responds residential property price fall during the financial crisis period, nonetheless, the Central Bank states that this situation will not affect bank system with significant money loss in case of default, due to sustainable balance.

The country’s housing market was frozen during the pandemic time, due to the fact that government restrictive measures prevented viewings and transactions. Lenders involved higher mortgage products at the cost of credit to protect themselves in case significant prices fall as far as the economy contractions and unemployment growth.

The Bank of England assumes that after the price fall, it will gradually rise during economic activity recovery period in the UK and reducing the unemployment rate.