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US-Israel War Threatens UK Mortgage Rate Declines

3/8/2026

31 4 Full Breakdown

Summary

Story summary

Halifax, the UK mortgage lender, warns that the US-Israel war on Iran may slow UK mortgage rate decreases, impacting house prices and inflation.
In February, the average UK home price rose 0.3% to £301,151, vs January's 0.8% gain.
Analysts say rising energy prices reduce the chances of Bank of England rate cuts.
Savills notes London prices fell 12.56% when adjusted for inflation, with higher service charges and taxes deterring buyers.

History

Historical Context

The 1973 Oil Crisis began with an OAPEC embargo during the Yom Kippur War, leading to a 400% surge in oil prices and significant economic turmoil in the West. This crisis prompted countries like the UK to reassess energy policies and contributed to the phenomenon of stagflation. Today, rising energy prices echo this historical event, influencing monetary policy and housing markets amid ongoing geopolitical tensions.

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Story summary

Halifax, the UK mortgage lender, warns that the US-Israel war on Iran may slow UK mortgage rate decreases, impacting house prices and inflation.
In February, the average UK home price rose 0.3% to £301,151, vs January's 0.8% gain.
Analysts say rising energy prices reduce the chances of Bank of England rate cuts.
Savills notes London prices fell 12.56% when adjusted for inflation, with higher service charges and taxes deterring buyers.

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