Due to AI, jobs are being ruined, and thousands are unable to pay UK housing rents.

The rapid growth of Artificial Intelligence (AI) is exerting significant pressure on the UK job market, pushing the country's unstable housing and property market towards a serious risk of collapse. Economists, pointing to the historically direct correlation between job losses and house prices, warn that the erosion of job security could lead to millions of people being unable to pay their mortgage installments, potentially plunging the country's major banking system into a severe crisis.

Excellent examples of this are seen in the early 1990s when unemployment rose to 10% and house prices plummeted by 15%, and during the 2008 financial crisis when unemployment exceeded 8% and house prices fell by 20%.

Data from Morgan Stanley confirms that many British companies have cut their workforce due to AI technology over the past year, a level higher than the global average. Official government assessments indicate that 35% of jobs in the UK are at high risk of exposure to AI technology, with young professionals in frontline roles, particularly in sectors such as finance, insurance, information technology, and administration, being severely affected. This situation has completely undermined the financial stability of educated young professionals aged 25 to 45, living in major cities like London, who are the primary buyers in the property market.

Currently, the unemployment rate in Britain has risen to 4.9%, and this uncertainty in the job market has led to significant concern among renters, first-time homebuyers, and even home insurance companies. Although individuals who lose their jobs may attempt to re-establish themselves as self-employed professionals, the inability of banks to provide home loans without annual financial statements is another major obstacle they face. This situation is also fostering a growing trend where many young people without stable incomes are forced to abandon their dream of buying a home and return to living with their parents.

Although the British housing market has shown some resilience so far due to the shortage of housing supply and the contribution of high-income buyers, recent data indicates that house prices have started to fall by approximately 0.5%, showing signs of a potential collapse. Furthermore, due to geopolitical instability in the Middle East, the central bank has decided to maintain high interest rates to control rising fuel prices and inflation. Thus, the simultaneous double assault on the property market from rising bank interest rates and job losses caused by AI technology suggests that the British economy is showing signs of an unprecedented severe downturn.