UK home sales decline as mortgage rates rise

UK home sales fell by 2% in August compared to the previous year, with approximately 95,220 transactions recorded according to HM Revenue and Customs figures. This represents a 1% decline from July.

Industry experts attribute the slowdown to rising mortgage rates driven by volatility in swap rates, alongside general economic uncertainty regarding the upcoming Budget. To combat affordability issues, the Government has introduced the ‘Your First Home’ initiative. This scheme aims to assist first-time buyers in England by allowing them to purchase new-build properties with a 2.5% deposit, supplemented by a 20% government equity loan featuring an initial interest-free period. Developers participating in the program will be required to provide contributions to help cover costs.