Demand for U.K. houses is falling at its fastest paces since the pandemic began in early 2020 as “buyer caution” from soaring mortgage rates further weakens the property market, according to new figures.
Data shows an index measuring the change in new buyer enquiries in October fell for a sixth consecutive month, dropping to -55% last month compared to a -36% decrease in September. While demand is waning all across England, house prices are also falling. RICS records its house price index fell to -2% in October, the first negative reading since June 2020, down from +30% in September.
Daily mortgage rates recorded by Moneyfacts have been on the rise since the recent market turmoil caused by the government’s mini fiscal announcement. As of Monday, average two-year fixed mortgage rates were at 6.44% and five-year fixed rates have increased to 6.27% from 4.75%.
Housing is more than 'stalling' ... its currently in a hideous firey tailspin! This housing price crash is going to make 07/08 look like a minor blip.