Summary
The UK's housing market is expected to slow down due to higher mortgage and energy costs linked to the conflict in Iran, according to Nationwide. The rise in energy prices and adjusted interest rate expectations are causing lenders to increase mortgage rates. This could lead to a decrease in housing affordability.
Key Facts
- Nationwide reported a 0.9% rise in UK house prices in March.
- Energy prices have surged due to the conflict in Iran, affecting the global economy.
- Mortgage rates are increasing as lenders adjust to expected interest rate hikes.
- Nationwide warned of more market impacts if the Middle East conflict continues.
- Average two-year fixed mortgage rates rose to 5.75% in late March.
- The average cost of a UK property rose to £277,186 in March.
- The Bank of England's plan to lower rates changed to expectations of rate increases.
