The ongoing conflict in the Middle East is having a significant impact on the UK housing market, with half of homes in Great Britain taking longer to sell than they did last year. This delay is largely attributed to buyers adopting a ‘wait and see’ approach, hoping for more favourable mortgage deals amid rising interest rates.
According to a report from property platform Zoopla, homes in 180 out of 363 local authorities are experiencing increased selling times. While the national average remains at 42 days, regional disparities are emerging, with some areas, particularly in Scotland, seeing quicker sales. For instance, Falkirk boasts an average selling time of just 11 days.
The volatility in the mortgage market, exacerbated by the Iran war, has led to lenders withdrawing deals and pushing up costs. The average two-year fixed mortgage rate has surged from 4.83% to 5.61% since the conflict began, peaking at nearly 6% in April. This uncertainty is prompting many potential buyers to delay their purchases, which could further slow the housing market.
As inflation pressures rise, the Bank of England faces challenges in managing interest rates. With expectations of rate hikes looming, the housing market may continue to feel the effects of both geopolitical tensions and domestic economic conditions, leading to a cautious approach from buyers and sellers alike.
Source: The Guardian
