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Updated · Bloomberg · May 20UK House Prices Stall at £268,000 as Mortgage Costs Rise
2 articles · Updated · Bloomberg · May 20
- The average UK home was worth £268,000 in March, unchanged from a year earlier, leaving annual house-price growth at zero.
- Rising mortgage rates drove the slowdown, with higher borrowing costs squeezing affordability and cooling demand.
- Political uncertainty and the Iran war added to those headwinds, reinforcing pressure on a housing market that had already been losing momentum.
With prices flat but mortgages soaring, is the UK property market paused or heading for a major crash? Is the UK’s north-south housing divide the new normal, creating two entirely separate property markets? Beyond war and interest rates, could AI be the biggest future threat to UK housing values?