Home / Business and Economy / UK Housing Market Stalls Amid Mideast Fears
UK Housing Market Stalls Amid Mideast Fears
9 Apr
Summary
- Buyer demand sharply declined in March due to mortgage market turmoil.
- Average fixed mortgage rates exceeded 5%, impacting buyer affordability.
- Sales expectations turned pessimistic with anticipated price drops.
The UK housing market saw a sharp contraction in buyer interest during March, reaching its lowest level since August 2023. This significant drop follows turmoil in the mortgage sector, intensified by geopolitical tensions in the Middle East. Average fixed mortgage rates have now climbed above 5%, prompting many lenders to withdraw products and raise their rates.
Consequently, agreed sales have mirrored this downturn, with estate agents expressing pessimism about future transactions and house prices. Surveyors anticipate a continued decline, with near-term sales expectations falling significantly. Price expectations for the upcoming three months also turned sharply negative.
While most regions experienced reduced buyer demand, London, East Anglia, and southern England saw the most significant pressure on prices. Conversely, agents in Scotland and Northern Ireland continued to report rising prices. Uncertainty surrounding interest rates and global events has stalled an already challenging market.
