Is the UK housing market cooling?

Mortgage rates jumped after Liz Truss' September 'mini' Budget, leading to some deals falling through and mortgage approvals dropping. House prices declined to £257,400 in February, with discounts of up to 4.5% available. Analysts predict buyers will adjust and demand will return.

March 12, 2023 . 2:03 AM

1 min read

Mortgage rates jumped to about 6% after Liz Truss' September 'mini' Budget, leading to some deals falling through.
Mortgage approvals dropped to their lowest since May 2020 in January, while house prices declined to £257,400 in February.
Discounts of up to 4.5% are available, with family homes remaining in high demand due to scarcity of properties.
Average house prices are £41,000 higher than in February 2020, leading to first-time buyers' mortgage payments rising to 39% of take-home pay.
Analysts predict buyers will adjust and demand will return.