The UK housing market: What will be the effect of the interest rate rise?
Thu 03 Nov 2022
What will be the impact of today's inflation-busting interest rate rise?
Our Head of Residential, Henry Cockerton reacted to the Bank of England's decision to increase interest rates by 0.75% to 3% - one of the biggest rises for 30 years.
He said: “Today’s interest rate increase is of course going to hugely impact people wanting to move house – first-time buyers and families, in particular, looking to upsize.
“Buyers will be doing their sums and calculating the difference the interest rate increase will make to their borrowings and then evaluating whether they can afford a mortgage on a larger, more expensive home. They may consider they need to stay put.
“This stalling in the lower to middle sectors of the market then impacts further up the chain. Without doubt the interest rate rise, while hopefully reducing inflation, will impact the housing market for those who do not have to move.
We are there for house buyers who need expert advice, reassurance and a guiding light in these darker times...
However, in my experience of 20 years working in property, the market always recovers."
"However, as we keep reiterating, many people need to move and will continue to do so and we are there for those buyers who need expert advice, reassurance and a guiding light in these darker times.
“We in Norfolk are somewhat insulated from the worst of the impact and we are still seeing properties being listed for sale and going under offer for more than the guide price.
"Our auctions are also doing extremely well and offer potential buyers a different way of purchasing more affordable properties. We have almost 40 new instructions for sale by online auction in our next two sales this month and in December.
“We are also going into a period that is traditionally slower as people focus on Christmas rather than moving and in my experience of 20 years working in property, the market always recovers and there are small signs of positivity already in some mortgage lenders reinstating products.
“Our message is: we are here to help those who wish to discuss the impact of the interest rate rise on their ability to buy or sell.”
You can contact Henry Cockerton in our Holt office on 01263 711167.
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