As we all know, a strong demand to buy and a limited supply of available properties tends to keep prices healthy, averting the chances of a housing market crash. But the recent Rightmove House Price Index found that the average price of a property coming to market had dropped by nearly \u00a35000<\/a>.<\/p>\n PMI data also shows a slowdown of housebuilding since May 2022,<\/a> indicating less properties coming to the market.<\/p>\n Chancellor of the Exchequer Kwasi Kwarteng’s mini-budget on 23 September sent shockwaves through the financial and construction sectors, with plans to scrap the cap on banker’s bonus scrapped- and corporation tax and national insurance facing severe cuts.<\/p>\n The response from the market was swift, as the value of the pound plummeted to a 37-year low against the dollar, and performing similarly against the Euro and in Asian markets.<\/p>\n The\u00a0International Monetary Fund even issued a statement, saying it was \u201cclosely monitoring\u201d the situation in the UK and urging the Chancellor to \u201cre-evaluate the tax measures\u201d.<\/p>\n The Bank of England<\/a> has since announced it will take preventative measures in a gilt purchasing operation. The Bank will will carry out temporary purchases of long-dated UK government bonds, to “to restore orderly market conditions”.<\/p>\n Industry responses to this unprecedented move have been generally lacklustre:<\/p>\n BoE is floundering here<\/p>\n — Neil Wilson (@marketsneil) September 28, 2022<\/a><\/p><\/blockquote>\nThe impact of the September mini-budget<\/h3>\n
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