Housing Market Weakens Amid Iran War Concerns
The housing market in England and Wales is facing a downturn due to rising inflation and mortgage rate fears linked to the Iran war. Estate agents report a significant drop in inquiries from new buyers, raising concerns about future market stability.
Market Overview
The ongoing conflict in the Middle East is casting a shadow over the housing market in England and Wales. According to the Royal Institution of Chartered Surveyors (RICS), inquiries from potential homebuyers have noticeably softened, with a net balance of 34% of agents reporting a decline in April. This trend reflects growing caution among buyers, who are increasingly worried about rising inflation and potential mortgage rate hikes.
As the Bank of England warns of unavoidable inflation due to the war, estate agents are seeing a stagnation in new property listings and a decline in agreed sales. The report highlights a widening regional divide, with London and the south experiencing sharper price drops compared to other areas.
- Key points include:
- 34% of agents reported fewer inquiries in April.
- A net balance of 36% noted a decline in agreed sales.
- House prices are falling more sharply in southern regions.