The UK housing market has recorded its most significant annual price drop in five years, according to the latest figures from Rightmove. The property portal reported a 1.7% decline in average asking prices compared to last year, marking the sharpest fall since 2018.
What’s Behind the Drop?
Analysts attribute the downturn to a combination of rising mortgage rates and economic uncertainty, which have dampened buyer demand. The Bank of England’s successive interest rate hikes have pushed borrowing costs higher, forcing many prospective homeowners to reconsider their plans.
Regional Variations
While the national trend shows a decline, some areas remain resilient. London, for instance, has seen only a marginal dip, with prime central boroughs even registering slight gains. In contrast, regions like the North East and Wales have experienced more pronounced decreases.
Expert Insights
"This correction was inevitable after years of unsustainable growth," said Sarah Wilkinson, a property market analyst. "However, the market is far from collapsing—it’s simply adjusting to new financial realities."
What’s Next for Buyers and Sellers?
For sellers, pricing competitively is now crucial to attract buyers in a slower market. Buyers, meanwhile, may find more negotiating power but must still contend with higher mortgage costs.
Rightmove’s data suggests that while the market is cooling, a full-scale crash remains unlikely. With inflation expected to ease later this year, stability could return by 2024.
