LONDON: The number of Britons looking to buy a home nosedived in March after the mortgage market was rocked by conflict in the Middle East, according to the Royal Institution of Chartered Surveyors.
Its gauge tracking new buyer enquiries plunged to the lowest since August 2023, with agreed sales mirroring the deterioration.
Estate agents on balance expect reduced sales and declining house prices over the coming months after average fixed mortgage rates surged back above 5%.
The survey points to a subdued spring for a housing market that had started the year on a positive footing.
Many lenders rushed to withdraw mortgage products and ramped up interest rates amid speculation the Bank of England (BoE) will act to contain the threat from an inflation resurgence triggered by Iran blocking a crucial shipping route for global energy supplies.
While money market bets on BoE rate increases eased markedly on Wednesday in response to the tentative ceasefire agreed by the United States and Iran, buyers are likely to face elevated borrowing costs for some time. — Bloomberg
