UK Property Market Slumps Amid Fiscal Uncertainty and Soaring Energy Costs

UK property market woes continue as the government's fiscal uncertainty and rising energy costs take their toll. Thirty-year gilt yields have hit 5.89%, a level not seen since March 1998, causing mortgage pricing to increase.

The Bank of England's decision to maintain interest rates at 3.75% has been influenced by higher energy prices, which are pushing inflation up. European gas prices are near their highest settlement since late 2022, and Brent crude oil hit $100 a barrel on September 9, its highest level since July 24.

Despite the gloomy outlook, Rightmove's average asking price fell by only 2% in August, down £7,360 to £364,999. However, activity is slowly picking up, and property experts are advising agents to adapt to the 'new normal'.