Hope seems to be on the horizon for the housing market as the year gets off to a promising start.
The decision from many mortgage lenders to reduce rates seems to have had the desired effect, as buyer interest has noticeably increased. Lenders are competing to offer the best deals. At the end of the first week of January, according to Zoopla, there were 10% more prospective buyers than in 2023.
TwentyCI has reported that agreed property sales reached a nine-month-high in December, with many commentators now hopeful that this signifies a market that is slowly but surely getting back on track. Oxford Economics expects the first cut to Bank Rate will come in May, thus relieving some of the pressure that many borrowers are under.
This could further increase the demand for housing, which, at the end of December, Zoopla has said was 19% higher than the previous year. Higher levels of demand are likely to have a knock-on effect on house prices, which could continue to stop falling if sellers no longer need to discount their property to make a sale.
🚨 Data accurate as of the date of publication –02.02.2024
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🚨 The above material is for informational purposes only and does not constitute a sales offer or financial advice. Before taking out any insurance, credit agreement or other financial product, you should obtain individual advice on your requirements and the general terms of the contract.
Source: Quilter Financial Planning – Residential Property Review, January 2024