Market Update - June 2023

Hello,

Firstly, apologies if you have had enough of hearing about the interest rate rising to 5% last Thursday, along with the changes it is having in the housing market, however I do wish to share a balanced view with you if you wish to read on...

All you will read from the media, there have been 12 rises in a row, highest base rate in 15 years and mortgages costing hundreds of pounds more than they did a year ago.

It is worth noting that the average base rate over the past 50 years is 9.15% and a sub 2% base rate was in effect for only 13 of the last 329 years.

People are increasing the length of their mortgage to regain their buying power, but would be paying a lot more interest over that time.

The change in rates since the record lows of 0.1% a couple of years ago means that on average, someone today would be paying approx an extra £210 every month on their mortgage per £100,000 they borrow, to which it affects circa 30% of households across the UK.

It is worth remembering that the average property grew by £1,583.33 per month during the Covid market and we have had it pretty good for a while now.

We are in a market where sellers are living in early 2022, thinking prices are still on the rise and buyers thinking it’s 2008 again.

Now is the time to place your faith in an agent that will be your safe pair of hands to navigate this confusing property market.

Jackson Property have been established for over 50 years and have all trained and experienced staff, the property and financial market is of course affecting a huge number of people, but as a nation we have seen it before. The best advice we can give is chat to an experienced agent on the changing trends, if you are thinking of selling or buying then speak to a mortgage advisor first.

Please feel free to share this message if you find it helpful and give me a shout if anyone has any questions.

Again, apologies if you have seen enough of the negative news around the impact the base rate is having on us all, thank you for taking the time to read.

Best Wishes
Nathan Jackman-Smith