Manya Rathore
Research expert covering India
Residential real estate in the United Kingdom (UK) - statistics & facts
Soaring inflation and mortgage rates affected residential markets in many countries, but the effect has been especially severe in the United Kingdom. The market grew substantially in the past decade, and the coronavirus pandemic, if anything, boosted house prices and rents even further. At its peak in November 2022, the UK house price index hit 154 index points, which was an increase of approximately 54 index points since 2015, the baseline year. An important driver for demand and house price growth during that period was the low cost of borrowing. Government schemes, such as the stamp duty holiday, were an additional incentive for prospective buyers. In September 2021, homebuyers could lock in a two-year fixed mortgage rate of 1.2 percent. Nevertheless, as the cost of living crisis unfolded, interest rates increased. Prospective buyers or borrowers whose deals expired in September 2023 faced mortgage rates of over five percent.
