The UK housing market boom is expected to end after 13 years, surveyors suggest, with the number of homes sold next year set to see the biggest decline in over a decade.
Market reports from the Institute of Chartered Surveyors showed that housing sales had fallen for five consecutive months to August 2022 due to rising inflation rates, with the downward trend continuing to gather pace into the second half of the year.
Due to the limited supply of housing, prices have continued to rise, but analysts say this is slowing in response to rising living costs.
According to ONS data, house prices rose 7.8% over the year to June 2022, down from a 12.8% increase to May 2022.
Rising interest rates have significantly impacted both new buyers and existing homeowners, making the housing market less accessible, whilst a Bank of England report said: “Rises in the cost of living and interest rates will increase pressure on UK household finances and make households more vulnerable to shocks.”
However, it provided reassurance, explaining that “households are in a stronger position than in the run-up to the global financial crisis, so UK banks are less exposed to household vulnerabilities”.