The UK property market has seen a major shift in recent months, with Zoopla reporting an 18% decrease in buyer demand as mortgage rates increase. This is a significant drop from the previous year, when buyer demand was at its highest level since the financial crisis.
The main reason for the decrease in buyer demand is the rising cost of mortgages. As interest rates have risen, so too have the costs associated with buying a home. This has made it more difficult for potential buyers to secure a mortgage, and has led to a decrease in the number of people looking to purchase a property.
The decrease in buyer demand has been felt across the UK, with all regions seeing a drop in activity. London has seen the biggest impact, with a 25% decrease in buyer demand compared to last year. This is likely due to the high cost of living in the capital, which has made it difficult for potential buyers to secure a mortgage.
The decrease in buyer demand has also had an effect on house prices. With fewer people looking to purchase a property, prices have begun to fall in many areas. This is likely to continue as long as mortgage rates remain high and buyers remain cautious.
It is important to note that this decrease in buyer demand does not necessarily mean that the housing market is in trouble. The decrease could be temporary, and it is possible that buyer demand could pick up again once mortgage rates begin to fall. However, it is clear that buyers are becoming increasingly cautious when it comes to purchasing a property, and this could have a long-term effect on the housing market.
Overall, Zoopla’s report of an 18% decrease in buyer demand is concerning, and highlights the need for caution when it comes to purchasing a property. It is important for potential buyers to be aware of the current market conditions and to consider all their options before making any decisions.