UK Inflation Surges to 2.3% in October

The recent 2% hike in Stamp Duty on second homes has created immediate challenges in the UK property market, with 22% of estate agents reporting negative impacts, primarily through transactions falling through and buyers seeking price reductions. Meanwhile, UK inflation has surged to 2.3%, surpassing the Bank of England's target and leading experts to predict that interest rates will remain high for an extended period, complicating the economic landscape for homeowners and first-time buyers. The spike in inflation, driven by rising energy costs, has prompted warnings that mortgage rates may increase further, with average fixed-rate mortgages continuing to creep up. As lenders adjust rates in response to economic pressures, the average five-year fixed-rate mortgage has risen to 5.23%, significantly impacting monthly payments for new borrowers. Analysts suggest that the combination of rising Stamp Duty and inflation may strain the housing market and worsen affordability issues. Overall, the outlook remains challenging as estate agents and potential buyers navigate these financial changes.