UK House Prices Defy Expectations Amid High Mortgage Rates

As the UK housing market continues to navigate the challenges of high mortgage rates, a surprising trend has emerged: sellers are holding firm on house prices. According to Rightmove, the average asking price of a new home in the UK has remained steady, with some regions even seeing record highs.

UK house prices remain steady despite high mortgage rates

The northeast and northwest of England, the East Midlands, Scotland, and Wales have all seen asking prices reach fresh highs. This is despite the impact of high mortgage rates, which have been blamed for a fall in inquiries from new buyers and a softening of the market.

“Sellers are still asking for record high prices for their homes, even as the housing market’s recovery stutters and a general election looms.” - Rightmove

The Royal Institution of Chartered Surveyors has also reported a decline in sales and prices, citing the recent increase in mortgage rates as a major factor. However, developers such as Crest Nicholson have noted a “softening” of the market, rather than a complete collapse.

Mortgage rates continue to stretch affordability

As the UK heads into a general election, the housing market remains a key issue. With sellers holding firm on prices, it remains to be seen how the market will respond to the ongoing uncertainty.

The housing market remains a key issue in the run-up to the general election

In the meantime, buyers and sellers alike will be watching the market closely, waiting to see how the situation unfolds.

Buyers and sellers wait with bated breath as the housing market navigates uncertainty