House prices in Edinburgh saw the biggest decrease since June 2020 in during November.
According to the Nationwide November House Price Index, prices fell 1.4 per cent month on month following a 0.9 per cent drop in November. The data also revealed that annual house prices across the UK slowed to 4.4 per cent in November, from 7.2 per cent in the previous month. And the decrease is expected to continue, with the annual rate of growth expected to fall sharply as we enter 2023.
It comes as the fall out from the mini-Budget continues to impact the market. And even after taking season effects into account, the slowdown is the biggest since over two years ago in the midst of the Covid-19 pandemic.
READ MORE: Which? reveals cheapest supermarket for Christmas dinner this year
Despite financial market continues stabilising, interest rates for new mortgages remain elevated, with the market loosing a significant degree or momentum as a result.
Affordability has been hugely impacted by the rise in mortgage rates, with potential buyers and moved now at much more of a stretch when it comes to affording monthly payments, with bills elsewhere also creating pressure.
Inflation is set to remain high for some time, with the Bank Rate expected rise again, with the market set to remain subdued in the coming quarters.
Following the figures, Marie Johnstone, managing director at Edinburgh-based estate agents, Wilson Property Group: " For now, the property market in Scotland is holding up, just.
"Higher end luxury homes in Scotland remain sought after and are still selling well despite the challenging economic conditions. However, as the recession takes hold in the coming six to 12 months and unemployment almost certainly rises, we will see a seismic shift in the property market and prices will start to fall.
"With rates set to rise further as the Bank of England attempts to rein in inflation, we could be in line for a 25 per cent to 35 per cent decrease in average property values that it could take a decade to recover from.
"By January, it will very much be a buyer's market in Scotland, much like the rest of the UK. In Scotland, landlords are selling up portfolios, often at a significantly reduced rate.
"The cap on rental income has driven further uncertainty into an unstable marketplace. We could see an avalanche of flats coming onto the market in the New Year once the short-term lets have cashed in on the Christmas trade."
READ NEXT
Full list of Edinburgh changes in December - Christmas road closures, strikes to DWP changes
Energy companies paying Scots to turn electricity off as bills soar - full list
Dad shares 'game-changing' condensation hack that tackles damp and mould in homes
Met Office gives 'Beast from the East' verdict amid Edinburgh white Christmas predictions
Martin Lewis addresses Christmas light running cost concerns as energy bills soar
