Banks warn affordability to remain a major issue despite property price decline

With property prices finally showing signs of decline, banks are warning that affordability will continue to be a major problem for potential buyers. The looming interest rate hike set for September 2026 means that even as homes become slightly more accessible, many borrowers face higher borrowing costs. This double-edged issue underscores the ongoing struggle in the housing market, highlighting the need for comprehensive policy solutions to ease financial pressure on prospective homeowners. The situation is particularly concerning given the broader economic implications of a stagnant housing market.