Mortgage rates are forcing sellers to set realistic home prices, causing a 4.8% decrease in the capital. Also, a rise in the rental prices. Real estate expert Nick Millican reports that interest rates affect mortgage affordability and borrowing costs.

Homeowners are becoming aware of this realization and are setting more realistic prices. Making it a buyer’s market. According to Nick Millican, even the most affluent parts of London are affected by these prices. Both buyers and sellers are keeping an eye on lower interest rates. 

And while it is a buyer’s market, higher rents make buyers less likely to rent an investment property as he informs. Mortgage rates have led potential buyers to hold firm during price negotiation. As real estate expert Nick Millican recalls, they are making first-time buyers key players in the housing market. The housing market has a broader range of choices than in 2021. 

Buyers who haggle and negotiate have a high chance of paying less. Buyers who offer less are getting deals, as Nick Millican states. Mortgage brokers offer competitive prices as interest rates remain steady. Though the outlook looks good and mortgage rates are not volatile after several mortgage raises, there is doubt there will be an end to mortgage pain.

Though lenders have offered good deals, it’s best to be wary, as such deals can mask hidden fees. Mortgage rates are still higher than those of 2021. The downward price trend may continue but will be impacted by the next general election. For Nick Millican, it’s estimated that most of the UK price correction will occur this year. Average London property prices are still more than £39,000, still higher than pre-pandemic. The Southern Regions have seen the most decrease in house prices.