First-time buyers face higher mortgage rates, and surging rents and bills prevent saving for deposits – no wonder there’s a big slowdown Inquiries by would-be buyers of homes hit an eight-month low last month, according to the Royal Institution of Chartered Surveyors, which talked about “a renewed deterioration in UK home sales”. On the same theme, Barratt Developments’ trading update on Thursday related a near-halving in reservations from first-time buyers year-on-year. And the estate agent Winkworth warned this week on profits because of a slump in activity.In other words, the news from the housing market is exactly as you would expect when buyers are adjusting to the new reality of sharply higher mortgage rates. The big slow-down is on, even if Barratt added that demand among existing homeowners is more resilient. A typical two-year fixed deal has risen to 6.66%, a 15-year high on Moneyfacts data. Continue reading…
Source : theguardian.com
Read more…A crash is unlikely, but the fall in UK home prices has a long way to go | Nils Pratley
