The average property price fell 1.0% compared with May last year, the first year-on-year decline since December 2012, in line with forecasts in a Reuters poll.Kim Kinnaird, director of mortgages at Halifax, said demand was weakening and higher interest rates were likely to increase pressure on house prices.
Britain's housing market recovered somewhat in early 2023 from the weakening late last year in response to former Prime Minister Liz Truss's announcement of unfunded tax cuts, which triggered turmoil in financial markets. "The brief upturn in the housing market in the first quarter has faded, with the impact of higher interest rates gradually feeding through to household budgets, and in particular those with fixed rate mortgage deals coming to an end," Kinnaird said.
Separate figures from UK Finance showed lending to first-time buyers in the three months to March was the weakest since spring 2020 when the housing market was largely shut due to the COVID-19 pandemic.after bond yields jumped when consumer price inflation came in at 8.7% in April, above the consensus of 8.2%.
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Source: Reuters - 🏆 2. / 97 Read more »