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Soaring cost of living fails to cool demand for homes

Estate agents are still reporting plenty of activity despite concerns that the cost-of-living crisis would dampen demand. For much of the past two years the UK property market has been characterised by a large number of buyers battling it out for few homes, a trend that has pushed house prices to record highs. Some industry experts had expected the market to cool over the spring and into summer as the surging cost of everything from petrol to washing machines takes its toll on household finances. The Bank of England has also been putting up interest rates, which will increase monthly mortgage repayments and limit how much people can borrow. However, in April, for the eighth month in a row, a net 10% of estate agents around the country reported a rise in new buyer inquiries, according to the latest residential market survey by the Royal Institution of Chartered Surveyors. There remains a shortage of houses being put up for sale, with most agents seeing a small drop in the number of new listings in April. On average each estate agency branch has 38 homes for sale on its books, which the RICS said was "extremely low".

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