The month of September has been very similar to the previous few months with activity supressed with the two issues restricting market growth are confidence and affordability

Despite the Bank of England holding the base rate at 3.75%, the majority of mortgage products, particularly for first time buyers, are around 5%. These rates are influenced by the economic fallout of the conflict in the middle east. The rates currently available are deterring many first time buyers from entering the market which is stifling activity across all property types and price ranges.

The Government have identified the need to help to stimulate the market and assist first time buyers by announcing a new equity loan scheme called Your First Home. This will assist first time buyers to buy brand new properties from destinated developers. More information will be available in the budget on 27th October.

It appears the Government is helping to support new home sales but not pre-existing owned homes which are owned by members of the public. Many sellers would welcome incentives to be offered to first time buyers to enable them to buy their property which would then enable them to buy on and build a chain of sales. The issue with assisting just the new homes market, it will only assist single properties and not chains.  This may not be positive for the rest of the housing market.

We continue to look forward and hope that the situation in the middle east is resolved sooner rather than later which should in time reduce the cost of mortgage borrowing and boost confidence.