Nick Leeming, Chairman of Jackson-Stops (www.jackson-stops.co.uk), comments on the latest interest rate rises:
“As inflationary pressures build, the news that the Bank of England has raised the base rate to 1% won’t come as a surprise to many homeowners who will have already factored this into their purchasing decisions, so I don’t see it having any immediate impact on the market. Although interest rates are now at their highest since the 2008 recession, we are still talking historic lows even if further rises are an inevitability to steady the UK economy.
“Most property buyers who are mid-purchase would have worked with a broker to secure a fixed rate deal, but if you are thinking of moving house, now is certainly the time to do it. We know there will be more rate rises to come, so finding a fixed deal from a recommend mortgage provider now will help mitigate any future hikes.
“We may see house price rises moderate in the coming months as a result, but with demand remaining as high as it is, I don’t see transactions dropping any time soon. We’ve all watched house prices rise at their fastest rate in 18 years and we look to a period of market stability in the longer term. Our branches have seen an increase in supply over the past week as properties hit the market ready for the summer, with a busy few months predicted as many rush to secure a mortgage.
“We are talking about property market cycles, from seasonal to economic ups and downs, where finding a pattern can help us feel more confident about the market ahead. Many have predicted that we have a few years left to reach the top of the market, but if you are selling now and also buying now, it all comes out in the wash as prices will be relative. Selling now while demand is strong could mean getting the best value for your home. But what you don’t want to do is be in a position where you are forced to sell in a market dip and then buy again as values recover. This is a fast moving market so my advice to buyers and sellers would be to act now and with due diligence.”
