House values continue to decrease as buy-to-let landlords sell
LONDON: According to a carefully studied index, house prices are continuing to fall, but transactions are ahead of the long-term average due to landlords selling up. (Reported by news source)
Landlord properties accounted for 11% of sales in the previous month, as high mortgage rates and energy expenditures pushed many property owners to list their homes in order to make a profit.
While an increase in supply may be welcomed by some, to raise interest rates on fixed rate mortgages by up to 0.45 percentage points will make it increasingly difficult for first-time buyers to get on the property ladder while also limiting the number of rental properties available for tenants.
"Home buyers remain price sensitive, with one eye firmly fixed on the economy's outlook, the cost of living, and the trajectory of mortgage rates, which appear likely to edge higher in the coming weeks," Donnell added.
It comes as the average price of a home in the UK has risen by 1.9% year on year, to £260k. However, this covers a 1.3% drop in the previous six months.