![\"Rachel-Reeves-house-price-crash\"](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/01\/Rachel-Reeves-house-price-crash-6680222.jpg\" "\\"Rachel-Reeves-house-price-crash\\"")
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We’ll all need a hard hat if Rachel Reeves crashes the housing market (Image: Getty)<\/p>\n
When it comes to Rachel Reeves and mistakes, where do I start? With her pre-election pledge not to hike National Insurance or income tax, now in tatters? The winter fuel payment fiasco? The failed welfare overhaul? The Budget income tax shambles and screeching U-turns that followed? I could rant about the \u00a326billion jobs tax that\u2019s sent unemployment surging or how she\u2019s attacking arguably the greatest asset this country has<\/a>. Yes, the Tories were useless, but they left something to build on. Reeves has taken a wrecking ball to it<\/a>. But her latest catastrophe is the biggest of all.<\/p>\n It will hit tens of millions of Britons right where it hurts, making them feel dramatically poorer and angrier, because she didn\u2019t have to do it. But being Rachel Reeves<\/a>, she did it anyway. So what\u2019s she done now?<\/p>\n Through her endless tax raids, she\u2019s trashed the London property market. That may not sound like your problem if you live elsewhere, but it should. Because where London goes, the rest of the country will follow.<\/p>\n The strange thing is that most people haven\u2019t noticed. But last week, the Labour-friendly New Statesman website ran a stark piece headlined: \u201cThe housing market has already crashed.\u201d It’s dead right. Prices are plunging, and this is just the start.<\/p>\n Read more: ‘Keir Starmer hits humiliating new low – please put him out of his misery’ <\/a><\/p>\n Read more: ‘Rachel Reeves plotting another insane U-turn – will tear Labour apart’ <\/a><\/p>\n The article noted that someone who bought the average UK property in January 2022 has seen its price rise from \u00a3248,031 to \u00a3269,862. Nearly \u00a322,000. That sounds fine \u2013 until you factor in inflation. Had that home kept pace with rising prices, it would now be worth \u00a3330,000. In real terms, it\u2019s fallen 18%.<\/p>\n That\u2019s before stamp duty, maintenance and improvement costs. The myth that property will inexorably rise and create a valuable store of wealth for later life has finally been punctured.<\/p>\n Yet Britons still cling to the notion that it\u2019s a guaranteed winner. Many people build their retirement around it. It gives them huge security, but it’s being steadily whittled away. The Tories<\/a> started the rot, as ever, but Reeves delivered the ultimate blow by treating homes like everything else she touches: as cash cows to be milked.<\/p>\n On her watch, stamp duty has risen, first-time buyer support scrapped, buy-to-let landlords hammered, a mansion tax lined up, and foreign buyers scared off by Labour\u2019s ideological assault on wealth<\/a>.<\/p>\n Talented young people are getting out if they can<\/a>. Entrepreneurs no longer want to set up shop here. London has lost its charm. The result? Prices have plunged a staggering 18% in the past year, according to the Land Registry. And that\u2019s before taking inflation into account. This will spread.<\/p>\n It\u2019s a huge blow for pensioner homeowners, eating into the value of an asset they’ve built up for years. And a nightmare for struggling retirees hoping to release the equity in their home to make ends meet, pay for social care or hand loved ones an inheritance.<\/p>\n The slow-motion meltdown is also a disaster for younger buyers who got on the ladder in the past five years, as they face falling into negative equity. Not just in London. Everywhere.<\/p>\n Half-witted lefties will celebrate house price declines but builders, plumbers, electricians, furniture manufacturers, kitchen makers and household goods retailers will be destroyed. Construction firms are already collapsing<\/a>.<\/p>\n And here\u2019s the brutal irony. As the New Statesman admits: people still can\u2019t afford to buy. Wages have been \u201cdevoured\u201d by inflation. And now Labour’s constant raids on tax and jobs.<\/p>\n For decades, chancellors did everything in their power to protect the property market. They understood how important it was. Then came Rachel Reeves.<\/p>\n