Demand in the housing market tailed off last month as hopes of a Bank of England rate cut faded, according to an industry report released just hours before a major housebuilder issued a profit warning. A monthly study by the Royal Institution of Chartered Surveyors pointed to a drop in prices during May.
said, as many fret over affordability. According to the latest data from the information service moneyfacts.co.uk, the average two-year fixed residential mortgage rate currently stands at 5.97%. It was last above 6% in December last year. suggested buyers were sitting on their hands in anticipation of borrowing costs coming down. Read more from business: Musk cheers 'wide margin' of support for record Tesla pay packetUS interest rate forecast to be cut just once in 2024 That trend was cited by housebuilder Crest Nicholson for a drop in half-year profits, warning its annual earnings would fall at least by a third.
senior economist, said: 'The recent recovery across the UK housing market appears to have slipped into reverse of late, with buyer demand losing momentum slightly on the back of the upward moves seen in mortgage rates over the past couple of months. 'Nevertheless, expectations point to this delaying, rather than derailing, a modest improvement going forward.'