Housing Market to Become 'VOLATILE' as Lenders Cut Rates of Mortgage Deals

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Summary:

  • Housing costs are rising significantly, affecting millions of homeowners on variable or fixed-rate mortgages.
  • The Bank of England's successive rate increases bring short-term stability but pose challenges for those struggling with housing costs.
  • Volatility in the housing market is expected as some homeowners need to sell their properties at reduced prices.
  • Investment in energy-efficient and high-quality housing stock is essential for the long-term stability of the market.

The Bank of England is still expected to raise rates for the 14th successive time this week. Property strategist and co-founder of Green Resi, Anna Clare Harper, discusses the current state of the housing market and its potential impact on homeowners and renters.


Harper highlights that housing costs are already on the rise, with about two million people living in homes on variable rate mortgages or fixed rates coming to an end by the year's end. The steep increase in housing costs is posing challenges for many, particularly when coupled with rising inflation. While the short-term stability brought by the Bank of England's actions is appreciated, those on variable or fixed rates are facing financial difficulties. The situation is leading to volatility in the housing market, with some homeowners needing to sell their properties at reduced prices. Harper emphasizes the importance of taking a long-term view in investing and urges for more investment in energy-efficient and high-quality housing stock.


In conclusion, the housing market faces uncertainties due to rising interest rates and increasing costs. While it may present challenges for homeowners and renters in the short term, the emphasis on long-term investment and energy efficiency could help build a more stable and prosperous housing market in the future.

Location: London, UK

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