Measurements by Zoopla have revealed that demand for new homes from first-time buyers has dropped by a third since the former chancellor announced his mini-budget.
The number of mortgage approvals being made to home-buyers also fell significantly in September, as borrowers’ costs increased. The Bank of England said mortgage approvals for house purchases decreased to 66,800 in September, from 74,400 in August.
New buyers in particular are facing the biggest squeeze since the 1980s, with mortgage rates hitting as high as 6%. Zoopla warned that “mortgage rates of 4% to 5% are likely to be the new norm” even after rates have dropped back in recent days.
