How Are Mortgage and Interest Rate Rises Impacting House Prices in 2023?

A lot has happened so far this year but one of the more unavoidable headlines has been the continued increase in interest rates and mortgage rates. The Bank of England has now increased the Base Rate 13 times since December 2021 and the interest rate now stands at 5% which is the highest that it has been in over 15 years. Inflation has stayed higher than people expected, which has led to the recent rate increases. 



The increase in interest rates has also been contributing towards a pushing up of mortgage rates. Estate agents have been reporting that a lot of would-be home-movers are pausing their plans whilst they assess what these new increased costs might mean for the budgets that they have already decided upon. 

 

A lot of home sellers have now changed the affordability of their properties thanks to some of the new challenges that are being presented to buyers. This is why the average asking price throughout Britain has dropped over the past few months, given fewer people can afford a high-value mortgage as rates continue to increase. 


Despite the increase in mortgage rates though, houses are still high in demand with more people looking now than they were earlier in the year and general demand being higher than 2019’s normal market level. That being said, increased rates mean that even though a lot of people are looking for properties, fewer deals have actually been struck.


Read How Are Mortgage and Interest Rate Rises Impacting House Prices in 2023?

Location: United Kingdom

Comments

Post a Comment

Popular posts from this blog

Can All Nationalities, Including Those on Tourist Only Visas, Purchase Residential Real Estate in the United Kingdom?

Image
 Individuals of various nationalities, including those on tourist-only visas, can indeed purchase residential real estate in the United Kingdom (UK). The UK does not impose strict restrictions on foreign ownership of property, and foreign nationals are generally allowed to buy and own residential properties, subject to certain regulations and considerations. One of the most important aspects to consider is the type of visa held by the potential buyer. While tourists and individuals on short-term visas are generally allowed to buy property, there might be some limitations or additional requirements. It's crucial to differentiate between short-term and long-term visas. Tourist-only visa holders, who are in the UK for a limited period of time and have no intention of residing there permanently, are typically allowed to purchase the property. However, they might need to provide proof of their legal status, demonstrate the source of funds for the purchase, and adhere to standard proper
Read more

What's the Best Way to Start Investing in Real Estate with Little or No Cash in the United Kingdom?

Image
Investing in real estate with little or no cash in the United Kingdom can be challenging but not impossible. Here are some strategies you can consider: Wholesaling: Wholesaling involves finding off-market properties, getting them under contract, and then assigning the contract to another investor for a fee. This strategy doesn't require a large upfront investment but relies on your ability to find good deals. Joint Ventures (JVs): Partner with other investors or individuals who have the capital but might lack the time or expertise to find and manage properties. You can bring your knowledge and efforts to the table in exchange for a share of the profits. Lease Options: With a lease option, you lease a property with the option to buy it at a predetermined price within a specific timeframe. You can then sublet the property to tenants and potentially make a profit from the difference between the rental income and your lease option price. Seller Financing: Some sellers might be willing
Read more

Exploring Probate Auctions for Property Sales in the UK

Image
Navigating the property market in the UK can be a complex and daunting task, especially when it involves unique processes like probate auctions. Probate auctions for property sales present a distinctive opportunity for investors and homebuyers. However, like any investment opportunity, they come with their own set of challenges and considerations. Before looking at the intricacies of probate auctions, it's important to understand what they are. Probate auctions happen when a property owner passes away, and their assets, including property, are distributed as per their will or the law if there's no will. These properties are often sold in auctions to settle debts or distribute the estate among beneficiaries. Probate auctions for property sales are unique because they often offer properties at lower prices, making them attractive to investors and homebuyers seeking a deal. The Attraction of Probate Auctions One of the main attractions of probate auctions for property sales is the
Read more