UK Housing Market Grinds to a Halt as Rates Bite

Date:

Trending

Britain’s once-thriving housing sector is now flatlining amid a tightening chokehold of astronomical mortgage rates. New data reveals house prices and transactions went into free fall in August, leaving estate agents the most pessimistic in over a decade.

- Advertisement -

The outlook darkened further this week as the Royal Institution of Chartered Surveyors reported its house price index plunging to post-financial crisis lows, defying downbeat forecasts. As the Bank of England sticks to aggressive rate hikes to tame inflation, the property chill worsens.

Mortgage costs remain sky-high after 14 consecutive rate increases, crushing demand. RICS found homebuyer inquiries and completed sales sinking to depths last seen during the 2020 market shutdown, with experts seeing no relief ahead.

- Advertisement -

Meanwhile, aspiring buyers are flooding the rental market as homeownership grows increasingly out of reach. But scores of small landlords are exiting as higher taxes and borrowing costs bite.

The resulting supply crisis has deepened into an affordability catastrophe – rents now consume 28% of the average wage according to Zoopla, the worst ratio in a decade. With humbling rate rises around the corner, securing a viable mortgage looks near impossible for many.

As a result, Britain’s once red-hot housing market has screeched to an abrupt standstill. Years of frenzied price growth have met their rate-induced emesis. Until mortgage rates meaningfully fall, the property deep freeze looks set to continue, becoming the new status quo.

THE SNAPSHOTS

Sign up to get quick snaps of everyday happening, directly in your inbox.

We don’t spam! Read our privacy policy for more info.

- Advertisement -

Support our independent journalism PayPal (Outside India) For PayU (For Indian Readers).

Shanaz Khan
Shanaz Khan
Shanaz Khan, Co-founder, COO & UK Editorial Lead

More Latest Stories

More Articles

Fintevex Overview: What Traders Need to Know in 2025

In 2025, the trading world is more competitive than ever. With hundreds of platforms fighting for attention, each promising tighter spreads, smarter tools, and...

Lexus CarPlay and Android Auto Integration

In the ever-evolving landscape of automotive connectivity, Lexus CarPlay and Android Auto integration have emerged as game-changers, providing unparalleled convenience and a seamless driving experience. Are you a Lexus owner looking to maximize your vehicle's smart capabilities? This article dives deep into everything you...

Sifx trading platform: What Traders Looking to Profit Should Really Know

sifx.com is an online trading broker that provides access to multiple global markets through...

Kriscore Capital Launches ₹100 Cr Fund to Back Early-Stage Indian Tech Startups

Kriscore Capital, a newly launched venture firm focused on early-stage Indian technology startups, has...

Operation Sindoor: India, Pakistan Agree to Ceasefire After High-Level Military Talks

India and Pakistan agreed on Saturday to halt all military activities across land, air,...
00:03:27

India Says Pakistan Attempted Large-Scale Drone Incursions, Used Civilian Flights as Cover

India on Friday accused Pakistan of attempting large-scale drone incursions across the western border...

No OTPs, No Hassles: The Rise of Passwordless Digital Payments

India is pacing toward a passwordless future in the digital payments ecosystem. Technologically, it’s...

Why Crypto Traders Are Flocking to Cap-tex Now

A recent surge in cryptocurrency prices, driven by global economic shifts and high-profile endorsements,...
00:01:49

Trump Claims U.S. Trade Threat Helped Defuse India-Pakistan Ceasefire

On Monday, U.S. President Donald Trump said his administration played a key role in easing tensions between India and Pakistan by making future trade...

How AI-Powered Online Platforms Are Revolutionizing Life Insurance Recommendations

Anyone with a child, a spouse, a life partner, or a parent as a...

Loans in Crypto Wallet: Useful Feature or a Security Threat?

Integrating crypto loans into digital wallets is gaining traction, allowing users to borrow and...

Layer PR Wins SME News UK Awards, Expands to Bengaluru

Layer PR, a global public relations firm owned by TechGraph, has secured two major...

How Technology Helps Combat Various Viruses and Diseases

Technology has transformed the ways we approach vaccines, particularly for the flu. One noteworthy...

12 Eye-Popping Hacks to Make Your Next Business Presentation Sparkle

Business presentations are often necessary to gain new clients and showcase what it is you can offer, but more often than not, they end...

The Long-Term Power of Investing: Selecting Undervalued Industries

Investing can seem overwhelming, especially for beginners, as the numerous options and strategies available can make it easy to feel unsure about where to start. However, one time-tested method that stands out is long-term investing—focusing on companies and industries with the potential for growth...

The Impact of EdTech on Student Outcomes in Higher Education

The introduction of interactive whiteboards in the early 1990s marked a major shift in...

Meta Legal Head Offloads Shares worth $577K

Meta Platforms Inc.’s (NASDAQ: META) Chief Legal Officer, Jennifer Newstead, has sold 921 shares,...

Predictive Analytics: The Key to Supply Chain Resilience

In today’s interconnected global economy, supply chains are the lifeblood of businesses, weaving intricate...

Empowering Growth: Boosting the Robotics Sector with Targeted Support

India's robotics sector is emerging as a key area of technological progress, driving innovation...

Software and Technology Changing the Industry

The advent of software and technological advancements has been a game-changer across various industries....

Jensen Huang Offloads $49.8Mn in Nvidia Shares

Nvidia (NASDAQ: NVDA) CEO and President Jen-Hsun Huang has disclosed the sale of 431,611...

Elon Musk’s X Sues Indian Govt Over Content Regulation Clash

X Corp, an Elon Musk-owned social media firm, sued the Indian government in the...

Why Smart Cities Are the Future of Water Conservation

Water conservation has become an important factor due to climate change and worsened water...

Alphabet CEO Sundar Pichai Increases Stocks Holdings Amid Dividend Adjustment

According to a regulatory filing with the U.S. Securities and Exchange Commission (SEC), Alphabet...

Layer PR Wins SME News UK Awards, Expands to Bengaluru

Layer PR, a global public relations firm owned by TechGraph, has secured two major...

Shell Executive Robin Mooldijk Sells €1.69 Mn in Shares

Shell plc’s Projects & Technology Director, Robin Mooldijk, has offloaded 50,000 shares in the...

HR Chief Amy Coleman Reports Over 46,000 Microsoft Shares in SEC Filing

Microsoft (NASDAQ: MSFT) Chief Human Resources Officer, Amy Coleman, has reported her stock holdings...

Alphabet Legal Chief John Kent Walker to Sell $2Mn in Shares via Morgan Stanley

Alphabet Inc.’s (NASDAQ: GOOGL) Chief Legal Officer, John Kent Walker Jr., has filed to...

The Ultimate Guide to Choosing and Using Fonts in Your Design Projects

Fonts play a crucial role in every design project, from branding and web design...

How Technology Helps Combat Various Viruses and Diseases

Technology has transformed the ways we approach vaccines, particularly for the flu. One noteworthy...

Why Smart Cities Are the Future of Water Conservation

Water conservation has become an important factor due to climate change and worsened water...

Interview: Vserve CEO Siva Balakrishnan on SEO Secrets for Amazon Seller Success

In an interview with TechGraph, Siva Balakrishnan, CEO and Founder of Vserve, shared how...

Alphabet CEO Sundar Pichai Increases Stocks Holdings Amid Dividend Adjustment

According to a regulatory filing with the U.S. Securities and Exchange Commission (SEC), Alphabet...