Inflation is forcing people to save money

Growth in UK property prices for sale has fallen markedly this year. According to the Rightmove website, this is due to pressure on buyers due to rising living costs and the prospect of rising interest rates, Reuters reports.

House prices have risen in the United Kingdom and many other western countries since the coronavirus pandemic; with many employees switching to remote working, they have been looking for more spacious accommodation to work from home.

According to Rightmove, between 15 May and 11 June, the value of homes for sale and in the highest demand rose by just 0.3%. A month earlier, prices had risen 2.1%.

Also, the number of potential buyers per property offered is still more than double the pre-pandemic level and 6% higher than a year ago, but has fallen by 8% in the last month.

It is worth noting that the director of Rightmove said he expects value growth to slow further this year to 5% a year.

Earlier, Bank of England deputy governor Sir Jonathan Stephen Cunliffe said the property market was slowing, reflecting the economic climate as people faced the highest consumer price inflation in 40 years. The Bank of England has raised rates five times since December to 1.25% and financial markets expect those rates to reach 3% by the end of the year.