Demand for homes drops by a third after mortgage rate rises | News

Demand for homes has plunged by a third in the five weeks since Kwasi Kwarteng’s mini-budget, research by Zoopla shows.

The rise in mortgage rates to 6 per cent following the tax cuts announced by the Truss government on September 23 have worn away demand among people already struggling with the rising cost of living.

The decline in interest among buyers was most pronounced in the southeast of England, where demand fell by 40 per cent, according to the property website. Demand, which is calculated from inquiries made by new buyers to estate agents, dropped by 38 per cent in the West Midlands, 24 per cent in Scotland and 20 per cent in the northeast of England.

UK house prices have risen to record highs