Housing forms a major barrier to UK adoption of the euro

Structural differences between the UK and continental European housing markets are a major barrier to Britain adopting the euro. Because of the large proportion of variable-rate mortgages in the UK, and its high level of home ownership, Britain is particularly sensitive to interest-rate changes. By contrast, many euro-zone countries have a predominance of fixed-rate mortgages and lower levels of home ownership. They are, therefore, less sensitive to rate moves.