Housing market in England and Wales weakening due to Iran war, say estate agents
Fears of higher mortgage rates and rising inflation as a result of the Middle East conflict are leading to a subdued and downbeat housing market, according to estate agents.Demand from potential homebuyers across England and Wales has shown a “noticeable softening” recently, according to a monthly survey of estate agents by the Royal Institution of Chartered Surveyors (RICS).Members have told the professional body that buyers and sellers are becoming more cautious, and many agents have cited clients who are worried about whether inflation and interest rates will rise in the coming months, leading to slower sales, fewer homes on the market, and more price-sensitive buyers.The Bank of England warned last month that interest rates may have to increase in the coming months as “higher inflation is unavoidable” because of the war in the Middle East and resulting jump in oil and gas prices.At the same time, mortgage rates are likely to be affected by the current sharp rise in government borrowing costs, as swap rates – which lenders use to price their fixed-rate mortgages – tend to move in tandem with government bond yields.
Tarrant Parsons, head of market research and analysis at the RICS, said: “Until there is a clearer path for inflation and borrowing costs, activity and sentiment look set to remain subdued, particularly across southern England and London where affordability pressures are most acute.”The RICS said a net balance of 34% of its members said inquiries from new buyers in April had fallen since the previous month.This is a slight improvement on the net balance of 40% who said inquiries had fallen in March, but still “indicative of weak market momentum”.The index measures the difference between the share of agents reporting rising and falling new buyer inquiries.The volume of agreed sales deteriorated in April, with a net balance of 36% of members reporting a fall, versus 35% a month earlier.
Estate agents are pessimistic about this improving much over the next three months.The report added that the flow of new properties being put up for sale was “largely stagnant” over April, while 34% more members reported decreases in house prices over the past three months than increases, marking a “further deterioration” from the -25% reading seen last month.However, there is a widening regional divide in house price growth, with stronger price falls being reported in London, the south-east, East Anglia and the south-west, while the north-west and north of England continued to post marginally positive readings.In the rental market, demand is outpacing supply, as a rising number of landlords leave the sector in face of increasing regulation and higher taxes.RICS members said the level of demand from new tenants has been increasing, with a net balance of 14% reporting a rise over the past three months, while there was a drop in new instructions from landlords to put their properties up for rent.
A net balance of 25% of respondents expect rents to rise over the coming months,The RICS report ties in with results from Savills, the estate agent, which said that it had seen “greater caution” among buyers and sellers in its UK residential business since the onset of the Middle East conflict,The company, which was giving an update to shareholders before its annual general meeting, said this caution has resulted in longer completion timeframes, and transactions overall for the first quarter increased by just 1% year on year,
Stephen Colbert on Trump’s 22ft gold statue at his golf club: ‘recreational idolatry’
On Monday night, Stephen Colbert gathered his “best television friends” Jimmy Kimmel, Jimmy Fallon, Seth Meyers and John Oliver on the couch after a monologue which focused on the war in the Middle East, Donald Trump’s latest slew of AI images and Sean Duffy’s return to reality TV.On The Late Show, Colbert discussed reports that the US president sent Iran a one-page memo last week outlining his peace plan. “I’m told we have a copy,” he joked, before flashing up a handwritten note in the style of a school kid’s love letter, which read: “Will you go to peace with me? Yes or no.”Over the weekend, Iran responded to Trump’s proposal with a list of demands that included reparations for the war and full control over the strait of Hormuz. Tehran also said that it as willing to suspend development of its nuclear program but for a shorter time than the 20 years requested by Trump
One in seven in UK prefer consulting AI chatbots to seeing doctor, study finds
One in seven people are using AI chatbots for health advice instead of seeing their GP, a UK study has found.The poll of more than 2,000 people found that – of the 15% turning to chatbots – one in four had done so because of long NHS waiting lists.The study analysed by researchers at King’s College London revealed the potential risks of using AI for health advice. A fifth of respondents who did so said the technology did not encourage them to seek a professional opinion and a similar proportion said they decided against seeking a consultation because of something an AI chatbot had told them.The research is the first to quantify the use of AI chatbots for health advice, according to the researchers, and signals how the technology is changing the way people are dealing with health problems
US Senate confirms Kevin Warsh as Federal Reserve chair, replacing Jerome Powell
The US Senate confirmed Kevin Warsh as chair of the Federal Reserve, one of the most powerful roles in the federal government that holds enormous sway over the economy.The 54-45 Senate vote on Wednesday was split along party lines, with the exception of the Democratic senator John Fetterman from Pennsylvania, who joined the Republican majority. It was most divisive confirmation vote for the position in history.Warsh was confirmed for a four-year term as chair and a 14-year appointment on the Fed’s rate-setting board.Warsh will officially step into the role on 14 May, when the term of outgoing Fed chair, Jerome Powell, ends
Sam Altman defends OpenAI in courtroom showdown with Elon Musk
The OpenAI CEO, Sam Altman, took the stand on Tuesday to defend himself and his company against a lawsuit by Elon Musk. Altman is set to be one of the final witnesses in the trial, which has pitted two of the tech industry’s most powerful men against each other in a dramatic courtroom showdown.Musk has accused Altman and OpenAI of breaking the AI firm’s founding agreement by restructuring it into a for-profit enterprise, alleging that Altman essentially swindled him into co-founding the company and providing tens of millions in financial backing. Musk also claims Altman unjustly enriched himself in the process and is seeking the CEO’s removal from OpenAI, the redistribution of $134bn to the firm’s non-profit and the undoing of its for-profit conversion.OpenAI and Altman have rejected all of Musk’s claims, arguing that he is motivated by jealousy after a failed bid to take over the AI firm in 2018 and a subsequent departure from its board
Florida students boo graduation speaker who called AI ‘next Industrial Revolution’
Though college graduations usually consist of a speaker giving advice to students, one recent ceremony featured students giving the speaker their opinions – loudly.The University of Central Florida’s 2026 graduating class booed as a real estate development executive spoke about how “the rise of artificial intelligence is the next Industrial Revolution” and about “living in a time of profound change”.The crowd of students was so loud that Gloria Caulfield paused, turned away from the podium and threw her hands up in the air.“Woop, what happened?” she asked, before letting out a nervous laugh: “OK, I struck a chord. May I finish?”As the crowd calmed down, Caulfield proceeded
Jim Furyk tells US players they need to make Ryder Cup more of a priority
Jim Furyk has admitted the United States need to make the Ryder Cup more of a priority as the 56-year-old plots a reversal of fortunes at Adare Manor in September 2027.Speaking expansively for the first time since being handed the US captaincy for a second time, Furyk pointed towards an overhaul of approach to the biennial event. He also suggested he will be keen to involve Tiger Woods on his backroom team.Victory for Europe at Bethpage last year means the US have won two of the past eight Ryder Cup stagings. The PGA of America wanted Woods to assume the captaincy for Adare, a scenario that was subject to delay before it was rendered impossible by the 15-time major winner’s Florida car crash in March
Joseph Fiennes on parenting, politics and banning children from social media: ‘Stand up, Keir, this is your kids’ generation’
From The Sheep Detectives to Rivals: your complete entertainment guide to the week ahead
Historic Oxford cinema under threat as Oriel College refuses to extend lease
Arthur Miller opens up about marriage to Marilyn Monroe in newly unearthed recordings
Man charged over bomb hoax after Peter Kay show evacuated
Royal Opera House calls for release of Georgian bass singer jailed over democracy protests