UK economy grows in April but house market weakens
Newly released official figures show the UK economy experienced marginal growth in April. The expansion was aided by robust trade in bars and pubs, although the same period saw was a challenging month for housebuilders and estate agents.
The Office of National Statistics (ONS) reported a 0.2% growth in the economy during April, following a contraction in March. However, the construction sector struggled as rising interest rates and increased mortgage costs made potential homebuyers more cautious.
The Bank of England has been gradually increasing interest rates in order to control inflation, which currently stands at 8.7%.
As interest rates rise and more individuals reach the end of fixed-rate mortgage agreements, certain lenders have withdrawn specific mortgage products from the market. Consequently, first-time buyers are encountering higher rates, resulting in some being unable to afford properties. Additionally, renters are facing elevated costs due to landlords opting to sell their properties.
