Rising mortgage rates and global instability are beginning to slow housing market activity with buyers holding back amid growing uncertainty over borrowing costs and the wider economic outlook.
Industry figures suggest first-time buyers are among the most cautious, delaying purchases as expectations of lower rates fade and affordability pressures increase.
At the same time, smaller landlords are continuing to exit the market, with higher borrowing costs and upcoming regulatory changes reducing returns and deterring new investors from entering the sector.
The combination of geopolitical tensions, including the conflict in Iran, alongside inflation concerns and economic volatility, is adding to hesitation across both the sales and lettings markets.
LANDLORDS SELLING UP
Nick Neale (main picture), Property Expert at Emoov, says: “Anybody who was holding out for a rate cut this month seems to be holding back. People are increasingly uneasy about the future and reluctant to take on additional debt.
“With the Renter’s Rights Bill coming on the 1st May, we are seeing a lot of landlords selling up, and smaller investors are leaving the market. New landlords are not entering the market now because borrowing costs are high and the return is not there.”
GROWING UNCERTAINTY
And he adds: “Uncertainty across the country and around the world is making people second-guess their decisions, especially when it comes to purchasing a property.
“Growing economic instability means people are a lot more cautious of what the future may hold. Buyers need to think carefully about affordability and avoid rushing into decisions.”
The slowdown comes at a time when the market is already adjusting to higher interest rates, with agents reporting a more considered approach from buyers and fewer speculative purchases.
