The economy may be headed toward healing and normalizing in regards to inflation, but the gains toward stability of the economy have yet to reach consumers. The financial struggle of households is still very much that, a struggle. The global pandemic took its hits, followed by double digit inflation, and higher interest rates caused more woes for borrowers. The shock to household budgets has been particularly hard due to higher costs in borrowing. In fact, it was recently reported that homeowners in mortgage arrears had increased by 24% over the same time last year. 

Asking prices for UK homes next year will be slightly lower than they are now according to the forecast offered by Rightmove, the largest online property website in Britain. The expected 1% decline will be the product of higher interest rates and the continued impact of inflation. This time around last year, the prediction was for prices to fall by 2.0% in 2023. However, the decline in the average asking price for a home is 1.3% lower than last year. The lower asking prices will likely be seen as less than a sign of a weaker economy, but more of a needed correction to the housing market’s pandemic boost.

The UK housing market is not to be discounted in its ability to stay resilient. Not Brexit nor a global pandemic could tear it down or hold it back. Even in a global pandemic it not only stayed afloat, but it also left forecasters scratching their heads as they watched their expectations fall like ashes amidst the burning demand in the market. Hopeful home buyers are going to find a way, no matter the short-term challenges that a bump in the economy might bring.

The economic landscape in the UK has been marred by concerns over growth, inflation, and higher interest rates. The governor of the Bank of England, Andrew Bailey, has been vocal about the challenges the UK economy faces, asserting that interest rates are unlikely to be cut in the "foreseeable future." This stance is underlined by a complex web of economic factors, ranging from inflationary pressures to the potential decline in house prices and the need for the Bank to maintain its focus on primary objectives.

The UK housing market is undergoing a significant transformation, marked by fluctuating asking prices and changing dynamics between buyers and sellers. Two prominent property market reports from Zoopla and Rightmove shed light on the current state of affairs, revealing contrasting aspects of the market's health and its responsiveness to external economic factors.

The competition for the attention of borrowers has gotten more interesting. The current standard base interest rate set by the Bank of England’s Monetary Policy Committee (MPC) is at 5.25%. It would be expected that lenders offerings should come in deals above the base rate, but recently remortgage offers have fallen below the Bank’s base rate and that could create a rush to remortgage by homeowners that could benefit.