Storm clouds are gathering, surveyors warn

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The UK property market is experiencing a surge in storm clouds, according to a survey conducted by the country's surveyors.

The Royal Institution of Chartered Surveyors (RICS) warning today that expectations of further interest rate rises from the Bank of England may put renewed downward pressure on the market in the months ahead.

The RICS' monthly healthcheck on the property sector has seen some improvement in market conditions during May, with the first rise in new instructions since early 2022. Although Scotland and Northern Ireland have experienced notable uplifts, house prices remain lower in much of England.

Tarrant Parsons, RICS Senior Economist, said there was a modest recovery in the sales market activity during May, with generally less negative compared to the end of 2022.

But he warns that expectations of further interest rate hikes will hit demand and affordability.

It appears that storm clouds are gathered, with the UK's stubbornly high inflation likely undermining the recent increase in activity by prompting the Bank of England to take further action through interest rate increases, leading to higher mortgage rates and ultimately reducing affordability and buyer demand. The banking sector appears to expect this, with many banks and building societies already introducing products with higher interest rates.

Halifax reported that house prices had their first annual drop in more than a decade last month.

The Bank of England has raised interest rates 12 times in a row, and the city currently expects another rise to 4.75% this month. The money markets have predicted that they could reach 5.5% by the end of the year.

Rental industry is also affected by interest rate rises, urging landlords to leave the sector and sell property, Parsons adds.

The UK's financial regulatory agency has unveiled a major shake-up in the marketing of cryptoassets.

The Financial Conduct Authority will stop the use of refer-a friend bonuses, which are popular in the industry. promoters must ensure advertisements are clear, fair, and not misleading, and ensure people have the appropriate knowledge and experience to invest in crypto.

Sheldon Mills, a Consumers and Competition executive director, said: "It's clear that there is no room for creativity in the company's advertising business.

Many regret making a havety decision, the study found. Our rules give people the time and the right risk warnings to make an informed choice. Consumers must be aware that crypto remains largely unregulated and highly risky. Investors should be prepared to lose all their money. The crypto industry needs to be ready for this significant change. We are working on additional guidance to help them meet our expectations.