| Bloomberg today is mostly troubled by the UK housing market. "Nationwide said the average cost of a home fell 1.4% in November — more than triple the estimated pace (economists expected a 0.4% drop) and the fastest since the height of the first Covid lockdown."
As reporter Liza Tetley puts it in a real marmalade dropper (or cereal bar) of a paragraph: "The decline could be the start of a more protracted downturn, reflecting Britain's lurch into a recession and spiraling inflation that's caused the tightest cost of living squeeze in memory. The Bank of England has boosted its benchmark lending rate to 3% from near zero a year ago, meaning those who remortgage in the next year may see their payments double."
The 1.8 million UK households set to refinance in 2023 will shudder. Some good news — the cost of a five-year fixed-rate mortgage fell below 6% last month for the first time in almost seven weeks, though the two-year fix remains above 6%. At that level a new two-year mortgage will cost about £10,000 more than one arranged last December. UK mortgage rates are predicted to stay near 5% until at least 2028. Incredible numbers call for ingenious solutions — and as Charlie Wells reports, that includes houseboats: "On land, higher mortgage rates are dampening demand for houses and flats. But on the River Thames, the vessels' lower costs, prime locations and relative energy efficiency are attracting new residents trying to eke out a bit of luxury even as inflation bites."
 Houseboats docked on the River Thames Photographer: Tom Skipp/Bloomberg It's not all river-views and gently undulating waves — Alice Kantor recently reported that Londoners, kept out of buying property by surging mortgage rates, are fighting for property to rent. The number of prospective tenants has more than tripled from early 2021 levels: "More than seven people are actively looking for every one property listed, SpareRoom data show, resulting in bidding wars and exorbitant landlord demands. Those who are lucky enough to find a flat will have to pay up: Average rents jumped 16% in October from a year earlier."
Estate agents tell Alice that six month's rent up front is not unusual and she's even found prospective renters asked for details about their personality. As one of them puts it, this is an unusual housing market: "Apparently it's a popularity contest." The UK will be affected by strikes every day in the run up to Christmas, with trade union leaders increasing threats to coordinate industrial action and cause maximum disruption in their quest for higher wages. Workers from the rail network, buses, postal service, health sector and schools are among those staging walkouts amid high inflation and government plans to rein in public spending. Read more from Eamon Akil Farhat and Emily Ashton. | 
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