Following the boom in the housing market during the COVID-19 Pandemic, numerous factors slowed property price growth. Firstly, the lasting economic effects of the pandemic saw a rise in inflation. Secondly, the Ukraine War exacerbated inflation further, meaning goods and oil became significantly more expensive. Thirdly, Kwasi Kwarteng’s disastrous mini-budget announcement sent the UK economy into a tailspin.
To correct inflation, the Bank of England raised interest rates 14 times in a row. In turn, this made mortgage rates more expensive, slowing property price growth and reducing activity in the market.
Following this turmoil, many experts forecast double-digit price falls.
However, Rightmove’s latest data shows remarkable fortitude in the UK housing market, suggesting that the market has once again been capable of withstanding external influences, maintaining its position as one of the more reliable ways to invest capital.
Discover what is happening in the housing market with RWinvest’s latest insights!
