UK house price growth forecast halved as Iran war fallout hits housing market
Summary
UK house prices fell for the second month in a row in April, causing Halifax to cut its annual growth forecast by half due to effects from the Middle East conflict. Rising energy costs and higher mortgage rates have made borrowing more expensive, leading to fewer homebuyers and slower market activity.Key Facts
- UK house prices dropped 0.1% in April, following a 0.5% fall in March.
- Halifax lowered its forecast for yearly house price growth to 0.4% from 0.8%.
- Higher energy prices linked to the Middle East conflict have increased inflation expectations.
- Average two-year fixed mortgage rates rose to 5.77% in April from 4.83% in March.
- The market faces a gap between seller price expectations and buyer willingness to pay.
- Nationwide showed house prices rose 0.4% in April and 3% year-over-year, differing from Halifax’s data.
- The conflict has created uncertainty, causing mixed signals in the housing market’s direction.
- Mortgage affordability in the UK is at its hardest level since 2008 due to these factors.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.