With another quarter percent increase in the Bank of England interest rates, home owners are becoming stretched further than ever before for over four years. According to market analysts, the property market has boomed and remains lucrative after great speculation of a property crash and a sudden decline in the property market. But this has ye to be seen, as lending is still above average as reported by the banks quarterly reports.
But the latest increase in the interest may star to prove some of the skeptics correct as these are testing times for home owners. With another increase in the pipeline within the next three months, it doesn’t look promising. With growth in the property market on a decline, the property market has certainly cooled down, and does not look to rise until the interest rates make a downwards move.
However, the drop in house prices is not a trend to be seen through the country, as hot spots can still be found in the country. As research from nationwide suggests, the average price increase within the last three months has been the lowest for over a few year. However, property prices in London and down south areas have stood their ground as the demand for property is on an increase resulting from a deficiency in properties available.
But other regions like the north and North West of England have experienced a freeze in house price. The lenders have also reported a decrease in lending figures. With London now seemingly as the only hot spot for property in the country where there is much foreign investment and cash buyers.
However, the buy-to-let business is still booming as thousands of Europeans are flooding into the UK and also due to the shortfall of housing within the UK itself. Since it is getting harder for first time buyers to take their first step on the property ladder, and foreigners entering the country, properties for let are being snatched up immediately.
Written 24th May