Nationwide Building Society has said there could be a “cooling” of the UK’s red-hot housing market because of rising inflation and interest rates.
“There are a few things that could moderate [housing demand] a bit in the coming quarters. For example, there are not many homes on the market at the moment. That is likely to hold back activity.
“If you look at rising inflation squeezing household budgets a little and if interest rates rise, then that is likely to exert a cooling influence as well. But if the recovery holds up, then activity is likely to remain pretty solid.”