Property News · December 1, 2022

UK house prices post biggest fall since 2020 after mini-budget chaos – business live


Average UK house prices fell 1.4% in November, as “the fallout from the mini-budget continued to impact the market,” says NationwidePotential buyers are now haggling house price down, reports north London estate agent Jeremy Leaf. ‘Prices are softening but could have fallen further were it not for those two stalwarts –shortage of supply and strong employment, despite continuing concerns over the rising cost of living and particularly mortgage repayments.‘The problem is not existing sales, the overwhelming majority of which are proceeding, but new business. However, some buyers are returning now that mortgage rates are beginning to fall but they are more aware of their stronger position so are negotiating hard.’Financial markets have been reassured by new government’s economic plan but the mortgage market is playing catch up. Mortgage rates should keep edging downwards as the effects of the mini-Budget wash through the system, which should settle the nerves of buyers and sellers, even as a 13-year period of ultra-low borrowing costs comes to an end.We expect house prices to fall by 10% over the next two years and the reality of higher rates will bite more after Christmas. Mortgage offers made before the mini-Budget will begin to lapse and increase downwards pressure on prices from 2023.” Continue reading…

Source : theguardian.com
Read more…UK house prices post biggest fall since 2020 after mini-budget chaos – business live

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