The slowdown in annual house price growth is a blow to those trying to buy their first home. 

The Bank of England raised its base rate from 1.25% to 1.75% earlier this month. This was a move to control inflation as energy and food prices soared. It also means that people will pay more for their mortgages, which will put further pressure on the housing market. 

1. The impact of the coronavirus

The coronavirus is a large family of viruses that can infect both animals and humans. Coronaviruses cause illnesses ranging from the common cold to more severe diseases. 

2. The Bank of England’s interest rate hike

Inflation accelerated last month, and the Bank of England decided to raise interest rates. Its Monetary Policy Committee (MPC) voted to raise rates by a quarter of a percentage point.

The rate hike was necessary to combat inflation, which had climbed to 10.4% in February.

The latest rate hike means that mortgage payments will increase for many homeowners.

3. The supply of new homes

A significant component of annual house price growth is the supply of new homes. Freddie Mac estimates that the national shortage of new homes is 3.8 million units by 2020.

4. The global economy

There are several reasons why annual house price growth is easing, but the main one is the global economy. The global economy is an aggregate of economic activities that takes place both within and between different countries.

For example, the COVID-19 pandemic and Russia-Ukraine conflict have affected the whole global economy.

This has become possible in recent years because of globalization.

These restrictions can negatively affect the economies of the trading countries. needs read more hear