ISSUE NO 16
June 2024
Welcome to our monthly Newsletter. Each edition will give you insight to the world of Mortgages and Housing.
We hope you enjoy!
The Inspired Team x
MARKET UPDATE
- What’s happening with house prices?
- House asking prices rose again in May by 0.8%, with the average asking price of a home in Great Britain at £375,000. This figure reached is a new record high.
- The spring months are typically the busiest period of the year for the housing market, so we often see prices increase at this time of year, too.
- Are Interest Rates falling or rising?
- The Bank of England met on the 9th May. Although they kept rates the same at 5.25%, 2 board members (out of 9) voted for a rate cut. Analysts are still predicting 2 cuts before the end of the year meaning rates could fall to 4.75%.
- Inflation
- In April 2024, the UK’s annual inflation rate fell to 2.3% which is close to the target level of 2%. The UK are now ahead of many comparable economies, such as France, Germany and the US (all at 2.4%)
- Mortgage Rates
- Mortgage Interest rates remained steady in May. The best 2 year fixed deal currently sits at 4.78% and the best 5 year fixed rate is 4.33% (based on 60% loan to value)
GENERAL ELECTION 2024:
- As you are aware, we now have a date of 4th July for the General Election. Let the madness begin! But how will it affect Mortgages and Property Prices?
- Lenders might become cautious and delay rate changes until the economic outlook is clearer. This includes the Bank of England who are expected to wait until August for a rate cut.
- How have UK house prices reacted to previous elections? Please see the chart below which shows house prices 6 months before and 6 months after the election. You can see a sharp increase after most elections other than 2019 which was affected by COVID.
