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UK Property Market
The drip, drip, drip water torture effect of small interest rate rises is beginning to have an impact on the UK residential property market. However, at a time when this would usually mean far fewer properties becoming available, the government’s adventure into Home Information Packs caused a flood of property to come onto the market to beat the June HIPs deadline, now of course postponed.
So over the past few months the government’s and Bank of England’s plans seem to have cancelled each other out and we are moving into uncharted waters where forecasting becomes the province of the inexpert, and real experts will admit they are left slightly bemused.
Interest rates may go up higher and HIPs’ legislation could be watered down further or even scrapped altogether, finally dampening the market. Hard as it is for first time buyers entering the market, this group would be well advised not to overstretch at this time. But with no hint of recession and the cost of borrowing still reasonable, even the bemused expert would find it hard not to suggest that with appropriate caution and prudence this is a good time to buy or sell.
