There are likely going to be trying times for many people in our community, the cost of living crises is arriving and no one is going to be sheltered from its effects. That will include tenants, landlords, property sellers, purchasers and those not looking to move alike. These wider scale economic changes have consequences for everyone in a variety of ways and I suspect that the incoming Prime Minister & Chancellor will take steps to address these pressures and offer further support as we progress through this period.
Recently we have seen interest rate rises, these will have an impact on the affordability of mortgages for new purchases, those moving to a variable interest rate after after a fixed term, or those looking to remortgage. As we move towards the Winter and the New Year there may be additional interest rate rises, while the incoming increases to the utility costs are going to further the squeeze on household budgets.
Therefore pressure on property prices may well continue from the “demand” side, as these market headwinds continue to have an impact. As time progresses an annual property price rise of single figure percentages, rather than the more recent double digit growth is much more likely. Our local housing market is resilient and often robust to the wider struggles of the economy as the fundamentals are so strong.
