London Daily

Focus on the big picture.

UK House Prices Plunge to 14-Year Low Amid Rising Interest Rates and Market Uncertainty

UK House Prices Plunge to 14-Year Low Amid Rising Interest Rates and Market Uncertainty

UK house prices fell at their fastest rate in nearly 14 years in May, with buyers reeling from higher interest rates and uncertainty in the market.
The annual rate of price drop picked up pace from 2.7% in April to 3.4% last month, according to lender Nationwide.

The average rate on a two-year deal rose from 5.45% to 5.49% and the average five-year, fixed-rate deal rose from 5.12% to 5.17%, the highest since January.

The Bank of England's recent figures showed a significant decline in mortgage approvals, dropping from 51,500 in March to 48,700 in April.

The building society warned that further rate hikes would strengthen the headwinds facing the already nervous market.

Commentators said that the normal "spring bounce" failed to materialise, as buyers were spooked by the threat of yet more interest rate pain.

The property market will continue to be overshadowed by heightened uncertainty over mortgages, with activity likely to stagnate and some clients putting their plans on hold.

According to the article, average property prices have been falling for the past nine months in the UK, and they are now four percent lower than their peak in August 2022.

In April, there was a brief price increase, but it is likely just a blip and not the start of a rapid recovery.

The article also mentions that approvals for house purchases were down in April and that lenders are on high alert, which is likely to cause a dry up in housing market activity and a decrease in confidence.
Newsletter

Related Articles

London Daily
0:00
0:00
Close
William and Kate's First Public Appearance Post-Chemotherapy
Trump Proposes Tariffs on Chinese Cars to Protect US Auto Industry
Heads of 9 post-Soviet states gather in Moscow, issue joint statement to the world
Viktor Orban expressed his view of the EU loud and clear, calling it 'a benign dictatorship at best, not a democracy.'
Controversy Over Metropolitan Police VIP Protection for Taylor Swift
Unilever Sells Russian Operations Amidst Activist Pressure
HSBC's Strategic Restructuring for Cost Savings
Sanjeev Gupta Faces Prosecution Over Missing Company Filings
Labour's Ambitious Employment Bill Aims for Worker Rights Reform
UK Maintains Non-negotiable Stance on Falklands and Gibraltar
Controversy Surrounds A75 Road Closures and 96-Mile Diversion
Crunch Time in Conservative Leadership Race
Keir Starmer's Challenges in the Wake of Sue Gray's Departure
Coroner Urges UK Government to Improve Severe ME Care
Starmer Calls for De-escalation in Middle East Amid Heightened Tensions
Chancellor Reeves Decides Against Pension Tax Hike
UK Advocates Urge Tobacco Windfall Tax and Permanent Levy
Starmer's Chief of Staff Plans Major Overhaul at Downing Street
Key Labour Thinktank Advocates New Powers for Mayors
Rachel Reeves Considers New Fiscal Rules for Infrastructure Spending
Great Britain Faces Lowest Winter Blackout Risk in Four Years
The Impact of Online Culture on Young Women: Survey Insights
Hypersonic Jet to Revolutionize Air Travel
Russian Medic Arrested for Alleged Satanism and Promoting LGBTQ Rights
UK: Chagos Islands Deal Was About Securing US Military Base
RT has converted key archive speeches delivered by Putin into spoken English using the help of AI
Walmart is now selling a new book titled The Achievements of Kamala Harris—and all the pages are blank.
Bill Gates: "6% of global emissions are cows... You can either fix the cows to stop them farting, or you can make beef without the cow."
Facilitated Communication: Miracle Tool or Manipulative Method?
The Allure of Browsing Online Property Portals: A Modern Obsession
Suspected Acid Attacker in London Bailed Amid Investigation
Tragic Channel Crossing: Four Migrants Killed
Labour Cabinet Ministers' Stances on Assisted Dying
The Influence of Tory Members on Party Leadership
UK Plans Major Overhaul of Employment Rights
UK Food Industry Lobbying Delays £1.7 Billion Plastic Packaging Tax
New UK Tipping Law Sparks Confusion Among Restaurant Staff
Debate Heats Up Over Assisted Dying Legislation in the UK
New Personalized Cancer Therapies Undergo Extensive Clinical Study
UAE Energy Minister: OPEC+ Doing a 'Noble' Job in Balancing Oil Market
Call for Wealth Tax Hikes to Curb Reform UK's Rise
Labour MP Supports Chancellor's Rejection of Wealth Tax
Debate Intensifies Over VAT Introduction for UK Private Schools
Israel Plans Retaliation Against Iran Amid Rising Regional Tensions
Norwegian Police Conclude 'Spy Whale' Hvaldimir's Death Due to Infection
Dominica Sells Citizenship to Boost Climate Resilience
Greta Thunberg Detained in Brussels During Protest Against Fossil Fuel Subsidies
UK Returns Chagos Islands to Mauritius After Decades-Long Dispute
UK Reaffirms Commitment to Overseas Territories Amid Falkland Islands Dispute
France's Silent March Supports Gisèle Pelicot: A Shocking Case
×