Number of house sales to hit lowest number since 2012

Zoopla have reported that the number of houses sold in the UK this year is expected to hit the lowest rate since 2012, with around 1 million sales set to be made and transactions almost a fifth lower than in 2022.

Mortgage rates have soared in the past year due to a steep increase of interest rates set by the Bank of England in order to curb inflation. At present, the average rate on a two-year fixed mortgage deal is 6.74%, according to Moneyfacts. The typical rate for a longer five-year deal is 6.22%.

Executive director of Zoopla, Richard Donnell, said: "Prices are falling more in southern England, where higher mortgage rates have priced more people out of the housing market, weakening demand.”, adding that “while UK house prices are 0.1% higher over the year, it is the number of sales that have been hit hardest by higher borrowing costs, especially amongst mortgage-reliant buyers.”.

Donnell said that rates need to fall below 5% before if the market is to see an "increased appetite to move home" by the end of the year.

Source:

https://www.bbc.co.uk/news/business-66652415