Bank of England Warns UK Property Market 'Softening Further'

The Bank of England has warned that the UK property market is softening, with estate agents reporting a subdued market and declining transaction numbers. According to feedback from Bank of England agents, property transactions are down on last year, with some areas experiencing double-digit percentage drops.

House prices in London and the South East are under more pressure than elsewhere, where they are barely rising. Demand is weak across both new builds and existing homes, with higher mortgage rates affecting affordability. House builders rely on bulk sales and incentives to maintain cash flow, but there's no expectation of an imminent pickup in supply.

The Bank Rate is expected to remain at 3.75% this week, although some members of the Monetary Policy Committee (MPC) are in favour of a rise. The MPC will consider the agents' feedback before making its decision.