Iran conflict hits UK housing market confidence

Property industry watchers warn the war in Iran is undermining a fragile recovery in the UK housing market. After early signs of renewed buyer activity at the start of the year, property transactions have slowed as geopolitical uncertainty and rising oil prices push up mortgage expectations. Data from Royal Institution of Chartered Surveyors (RICS) shows new buyer enquiries fell 26% in February, reflecting weakening confidence. Analysts say higher energy prices could keep mortgage rates elevated, with average two-year fixed deals already exceeding 5%, according to Moneyfacts. Economists warn the uncertainty may delay housing activity in the short term. In a worst-case scenario, forecasts from Capital Economics suggest house prices could fall by up to 15% if borrowing costs rise significantly.

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