UK Property Market Remains Strong
According to a recent Halifax report, house prices are continuing to rise and will continue to do so in the months ahead. Prices rose by 4.5% in the year to October. This is up from 4% in September and is the fastest rise since February of this year. The average price of a house in the UK now stands at £225,826.
Even with the recent interest rate rise, mortgages remain cheap and affordable for a lot of people. According to the Nationwide Building Society, variable rate mortgages account for 40% of all mortgages, down from 70% in 2001. An increase in rates of 0.25% equates to an increase of monthly payments by £15 to £665 for the average mortgage. This comes to an extra £180 a year.
Reports state that the rate rise will affect 4 million people, but should not create a barrier to property purchase. Although there are further rate rises anticipated, these are likely to occur over several years rather than a shorter time period.
Once interest rates hit 4%, we may see a slowdown in house price growth. However, the average house is still expected to increase in value by £30,000 in the next 5 years. If you are looking to buy or sell your house, you should not let any anticipated changes in the interest rate affect your decision.
As a company, Robert Oulsnam and Company are continuing to take on new instructions and are finding eager buyers. In October 2017, Robert Oulsnam and Company have had 176 new property instructions, 2,303 viewings and sold 145 properties so it’s business as usual here.