UK home sellers decrease prices after mortgage rate hikes

After a sharp increase in the cost of mortgages, as well as the threat of economic recession, the UK property market has cooled down. Estate sale prices have decreased at a record pace, last recorded in August.

According to the property-search website Rightmove, offer prices fell 1.1% in November before its previous growth by 0.9% in October. In general, this decrease is quite regular for the autumn season, given that many sellers are intended to complete transactions before Christmas.

However, the current figures demonstrate the UK property market weakening after its significant growth during the pandemic. Nowadays, the Bank of England quickly reacts to the economic situation and continues to raise rates in order to beat inflation. Regarding this, the property market will either suffer greatly or get back to its regular growth levels.

Also, Rightmove outlines that sellers have become more open to price shifts in order to complete transactions faster. Thus, the number of unsold properties with lowered prices increased to 8% in October, which is more than twice as high as the previous year’s numbers.