The UK housing market is facing renewed downward pressure as the combined weight of elevated mortgage rates and ongoing geopolitical tensions in Iran suppresses buyer demand.
This marks a sharp reversal from recent months, when prices had registered marginal increases as borrowing costs briefly eased from their conflict-driven peaks.
The slump underscores how quickly sentiment can shift in the property sector when macroeconomic headwinds intensify.
While lenders had previously adjusted rates downward slightly, providing a counterweight to the initial shock of the Iran conflict, the latest data suggests that demand has collapsed under the sustained pressure of high financing costs and uncertainty.
According to City A.M., the dual impact of the war and interest rates is hitting demand hard.
This development follows a period where more than 30 lenders had increased their rates in recent weeks, responding to renewed inflationary pressures stemming from the conflict, as reported by Handelsavisen earlier this week.