Statistics show that despite a worrying and uncertain time, house prices are still on the rise with an increase of 0.9% in October against September of this year and 7.8% against this time last year. Experts suggest that the boom, which has lasted for over 13 years, could end in 2023 as interest rates increase.
The hope was that Jeremy Hunt’s recent decision to reverse most of Kwasi Kwarteng’s mini-budget may help to stabilise the economy and our reputation with the rest of the world may be improved – which would have a beneficial impact on our global economy as well as interest rates at home. However, it is difficult to know for sure what the effect will be, and it is a concerning position to be in for those of us looking to buy a new property or remortgage.
The new matters which are coming across the desk do not currently seem to be decreasing and this is indicative, to us as solicitors, that the market is still performing well. It is quite clear that prices could not have continued to rise at the rate they were and any slow-down in this increase is no bad thing as so many people were becoming priced out of the market.
One thing we have seen change over the recent months is a switch from the market being very much a seller’s market to more of a buyers’ market, as buyers are making decisions based on an unknown interest rate and regular interest rate changes – the like of which we have not seen for some time.
It seems we are in a constant guessing game at the moment of what will happen next with the housing market and with the recent changes in government it is very much a case of watch this space.