3 months ago • 1 min
UK house prices have fallen for four straight months now, with bloated mortgage rates pricing out potential buyers – especially first-time would-be homeowners. As a result, experts predict there will be 28% fewer mortgaged sales this year versus last. And sure, lucky all-cash buyers who don’t need debt are pretty much immune, and are actually expected to make up a third of this year’s sales. But there aren’t many of them out there, so the overall picture is still a dip in purchases.
And a big dip, at that. Look at the chart above: it shows that the number of residential transactions is slated to hit its lowest in over a decade this year, according to estimates from property platform Zoopla. That would be well below the 50-year average, and this could just be the beginning. The Bank of England’s expected to pull interest rates even higher and Brits are headed into winter with little to no government support – a combination that’ll weigh heavy on folks’ budgets. And when everyday life is already a financial burden, homeownership isn't even in the conversation.
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