UK House Sales Dip Amid Higher Borrowing Costs and Geopolitical Uncertainty

The UK housing market saw a slowdown in July, with an estimated 96,710 house sales, down 1% from the same month last year and 2% from June. Experts point to higher borrowing costs and geopolitical uncertainty since the Iran war as contributing factors.

Mortgage rates jumped earlier this year following the US-Israel conflict, affecting financial markets in the UK. Although they've been edging lower since spring, many buyers continue to see higher rates than at the start of the year, leading some to put activity on hold.

Jason Tebb, president of OnTheMarket, notes that the market's underlying resilience remains, with buyers and sellers adapting to changing circumstances. The Bank of England's decision to hold interest rates this year, combined with lenders easing mortgage pricing, has improved affordability amidst high living costs.