As we end the first quarter of the year, not a great deal has changed in terms of confidence in the general economy or affordability. Despite some optimism a few months ago many people are struggling to feel good about the economic situation as the Government are taking measures to balance the books. Last weeks Spring Statement from the Chancellor did very little to impact the housing market.
The measures announced as last Autumns Budget will come into effect in April but it is unlikely that the impact of the rise in National Insurance and Minimum Wage will be known until later in the year. In the meantime, the over spill of the negativity in confidence is containing the housing market.
The interest rate reduction in February was definitely another step in the right direction for mortgage borrowers but affordability is still the biggest issue along with confidence. These two factors influence most home movers’ decision to become active.
The mortgage market has become pretty non-eventful in recent weeks as the market waits eagerly for the Bank of England to reduce rates again in the future. Five-year fixed rate deals generally hover just above 4% which is a huge improvement from rates of 18 months ago.
Locally, housing stock levels remain high with circa 1,000 properties For Sale within a 5-mile radius of any of our offices. This gives buyers a great choice but dilutes seller’s chances of achieving a sale. This supply of available property has kept house prices relatively unchanged for a good period of time.
Overall, the first quarter has been fairly consistent and steady but this can also be seen as a positive as the stability now is the key to future prosperity.