High mortgage costs are taking a toll on the UK housing market, with average new seller asking prices suffering the sharpest fall in November for five years.

Prices dropped 1.7% on a monthly basis, as higher interest rates have prompted a wave of nervousness about moving house.

According to Rightmove, the market has slowed, with homes taking 62 days to sell, compared to 40 days this time last year.

It’s hardly surprising given the era of cheap borrowing has hurtled to an end and average mortgage rates hover around 6%, putting many hopes of moving up the property ladder in the deep freeze.

The FTSE 100 has found a dose of Monday motivation amid hopes that peak interest rates have been reached, despite warnings about America’s huge debt pile and ongoing geo-political fracture.

British Land has helped cement a more upbeat mood, helped by the performance of its retail parks portfolio, with shares rising 5% in early trade.

Results appear to have spread wider cheer about the resilience of the UK economy, with the company expecting rents for commercial property to rise next year.

Investors await inflation data and bank policymakers comments

There is a little more optimism edging in on markets ahead of key inflation data out this week, with sentiment fluctuating about what lies ahead for monetary policy.

Investors sentiment is volatile when it comes to expectation of bank policy, swinging from pessimism to optimism from session to session.

Investors will be hanging on words of central bank policymakers this week, as a slew of speeches are expected for clues about the future trajectory of monetary policy.

Bank of England MPC members Sarah Breeden and Catherine Mann are set to speak later today, while Chief economist Huw Pill will make a talk at the Festival of Economics in Bristol on Tuesday.

His views about the direction of monetary policy for central banks will be poured through for clues about how split the Bank of England is on its future interest rate decisions.

Source: Property Notify