The UK property market has been relatively quiet in January and February 2023, with house prices continuing to rise at a slower pace than in previous months. Mortgage rates have also started to rise, which could dampen demand in the coming months.
The Bank of England raised interest rates in December 2022, and it is expected to raise them again in March 2023. This will make it more expensive for people to borrow money to buy a home, which could slow down the property market.
The government has announced a number of new regulations for buy-to-let landlords, which could make it less attractive to invest in property. These regulations include a higher stamp duty surcharge for second homes and a cap on the amount of rent that can be charged.
The largest house price rises in January and February 2023 were seen in the South East, where prices increased by 2.5%. The smallest house price rises were seen in the North East, where prices increased by 1%.
The government has also announced a new energy efficiency rating system for homes, which could make some properties less attractive to buyers. The government is also considering introducing a new tax on landlords who own more than 10 properties.
The UK property market is expected to remain relatively quiet in the coming months, as buyers and sellers wait to see how the rising interest rates and new regulations will impact the market. However, there are still some positive factors that could support the market, such as strong demand from first-time buyers and the limited availability of properties for sale.
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