The war in the Middle East is crippling the economy. Here’s what young people need to know about the UK housing market!
To recap, you: This year, the United States of America (US) and Israel joined forces to issue a series of air strikes on Iran. As a result, killing the latter’s Supreme Leader, Ayatollah Ali Khamenei. In retaliation, Iran proceeded to close the Strait of Hormuz, the only waterway providing access and distribution of gas globally.
In addition, Iran issued a series of air strikes back. After six weeks of attacks, all three parties finally drew a truce on Wednesday, 8th April. Since then, the war has come to a partial standstill. With the three countries no longer invading one another. However, Iran continues to attack Lebanon and other countries.
How does this affect the UK housing market?
The war in the Middle East has caused an astronomical global impact on the cost of living. Due to energy and oil resources being withheld for six weeks.
What are the facts?
A new report shows that the effects of the Iran war will see an average of £480 reduced from the average household in the UK. This number is a result of the war in the Middle East and was reported by the Bank of England.
In March, the Bank of England addressed the matter in its Financial Policy Committee Record, stating:
“The conflict in the Middle East has resulted in a substantial negative supply shock to the global economy. This has triggered significant market reactions, including large and volatile upward moves in global energy prices and government bond yields. The financial system has been resilient so far. However, the shock will weigh on growth, increase inflation and tighten financial conditions.
This is likely to interact with vulnerabilities previously identified by the FPC in sovereign debt markets, risky asset valuations and risky credit markets, notably in private credit. Adverse impacts on the global macroeconomy increase the likelihood that multiple vulnerabilities could crystallise at the same time, amplifying their effect on financial stability and, ultimately, the provision of vital financial services to UK households and businesses.”
Why should young people be worried?
The deterioration of the economy is not only a struggle for adults, but it will affect young people even further. For the younger generation now, and potentially in the distant future, considering it is estimated to take a minimum of several months for the world to recover from the war in the Middle East.
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Is being a homeowner still plausible for the next generation?
Hypathetically, yes. Realistically, unlikely. Earlier this year, it was reported by the Nationwide Building Society that UK house prices had increased from an average of £1,884 (1953) to £272,378 in the tail end of 2025. An astronomical increase that seems almost impossible. Last month, the House of Lords Library confirmed that, “Average property prices in England had risen by173% (after adjusting for inflation) and 253% in London since 1997.”
Terms to buy now look at unbelievably high and unrealistic figures on deposit down payments.
How does the cost-of-living affect the working class next gen?
Since the housing crisis is already at an intolerable level, the principles for what enables people to put their first down payment grow huge limitations for working class indivduals. Despite being in full-time work, if you’re a young adult who is working class, many barriers are preventing you from becoming a homeowner.
What are the solutions?
If you’re a young person who is looking to buy your first home, there are a few steps you can take to make sure you’re getting the best out of your money. Many banks have mortgage calculators, which you can use as a tool to work out the realistic amount you can borrow, based on your annual salary. Some sites also handle low income morgatge deals, for those who earn substantially less and need advice on what their best options are.
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Laviea Thomas is a journalist at Inside Success who writes about film, music and politics.
Outside of that, she is an experienced freelance journalist with bylines in NME, The Quietus, Metal Hammer and more.
Over the years, Laviea has been an active panellist discussing fundamental conversations in the music industry, such as diversity and inclusion, and the importance of grassroots venues. She has been a panel guest for Kerrang! Focus Wales Festival, Future Yard and more.
