Housebuying demand falls as Iran war spikes mortgage rates

Housebuying demand in the UK has declined as the Iran war has led to increased mortgage rates, with buyer inquiries down 13% in March compared to last year. Nearly 1,500 residential mortgages were removed from the market, causing a 20% contraction. While sales agreed fell only 2%, the competition among buyers has decreased, giving those who remain more negotiating power. London’s housing market is lagging, with prices down 0.2% year-on-year, while the national average rose by 1.3%. Experts warn that further increases in borrowing costs could weaken demand and sales volumes.