Sales of UK homes this year were set to reach the lowest level since 2012 as soaring rates of interest on mortgages hit affordability, a survey showed today.
Total sales were on track to hit one million, down 21% compared with 2022, according to a forecast by property website Zoopla.
"While UK house prices are 0.1% higher over the year, it is the number of sales that have been hit hardest by higher borrowing costs, especially amongst mortgage-reliant buyers," Richard Donnell, executive director at Zoopla, said in a statement.
"Cash buyers are more immune and on track to account for more than one in three sales in 2023," he added.
Mortgage-backed sales would drop by 28% this year, Zoopla added.
Banks in the UK have increased mortgaged rates after the Bank of England hiked its own borrowing costs aimed at cooling elevated inflation.
Average mortgage rates for short-term fixed loans in Britain remain above 6%, according to Moneyfacts.
Bank of England data today showed mortgage approvals had dropped to the lowest level since February.
