Summer holidays, 30-degree heat and interest rate rises. Strange how different things can have similar effects on the property market. We were expecting the interest rate rising and the influence of the summer holidays, but maybe not so much the temperature levels we saw.
Several factors are having, and will have, an effect on the property market. The sunshine and the option to finally take a couple of weeks off and maybe even leave the country always leads to a small lull in activity. The interest rate increase was inevitable with inflation running away with itself. Although not ideal this rise in rates is necessary to slow inflation and steady the property market.
Recession is a scary word to have to hear again but understanding the reason helps to see the wider picture. A small period of a shrinking economy allows inflation to fall and everyday prices to settle and even decrease. Cost of living drops and order is restored. Let’s hope the Bank of England and the incoming Prime Minister can see it through successfully.
That said the property market continues on an even keel with prices beginning to settle. Stock levels, although rising slowly, are still low and there is still a higher level of demand for property and money out there to spend.
On that note, now would be a good time to research or update your mortgage affordability. Increases in rates obviously lead to increases in repayments however the lending checks involved have provided a more stable industry and safer market.
The overarching theme of the national news may seem negative but in reality, there are still glimmers of light in the property market. With autumn comes the return of school days and the rejuvenation of buyers and sellers after a well-deserved break. 30-degree heat may have gone but the market is still warm.
Why not speak to an independent mortgage adviser in one of our branches for impartial and knowledgeable guidance through the mortgage market?