- A war between two nations began, followed by the announcement of a framework deal to end hostilities.
- Central banks meet to discuss interest rates as global oil prices are influenced by the ongoing conflict in Iran and peace talks between the US and Iranian negotiators.
- The UK housing market is being affected by Bank of England policy, the ongoing Iran war, and the upcoming World Cup.
- Bank of England data showed mortgage approvals, and a Broadstone director commented on the housing market.
Savills predicts UK property prices will fall 1.5% next year amid BoE rate hikes
What happened
Savills predicts that property prices across Britain will fall 1.5 per cent next year. The agency noted that the prolonged war across the Middle East has delayed mortgage-rate relief for borrowers. Furthermore, the Bank of England is poised to increase the base rate from 3.75 per cent to 4 per cent this Thursday, with the rate anticipated to reach 4.25 per cent next year.
From dailymail.com
Why it matters
The Bank of England's policy decisions are weighing on sentiment in the UK property market. Savills forecasts zero house price growth this year, followed by a 1.5 per cent drop in 2027, before prices are expected to rise in 2028 and 2029.
The UK housing market is being affected by Bank of England policy, the ongoing Iran war, and the upcoming World Cup.
From dailymail.com
Who's involved
- Emily WilliamsDirector of residential research who noted the impact of Bank of England rate hikes
- Bank of EnglandCentral bank poised to increase the base rate from 3.75 per cent to 4 per cent
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Nationwide Building SocietySpeculative
Nationwide Building Society may experience increased cost of capital and reduced lending margins due to the higher Bank of England base rate.
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The entities involved
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Bank of England
central bank of the United Kingdom