First-Time Buyer Inquiries Drop 27% After Bank of England Rate Hike

First-time buyer inquiries for homes fell by 27% in the week ending November 8 compared to the previous year, according to data from Zoopla. This decline follows the Bank of England's decision to increase the base rate from 3.75% to 4%, the first interest rate hike in over three years.

Zoopla executive director Richard Donnell noted that higher mortgage rates have caused many buyers to pause and wait. He indicated that while more affordable homes are available, sellers must price properties realistically because buyers now have more choice.

Conversely, Propertymark reports that overall buyer registrations and new property listings remain stable. Chief executive Nathan Emerson stated that underlying interest in the housing market remains relatively consistent, even as borrowing costs create affordability pressures for those already facing financial strain.