It’s been a runaway five years in regards to house prices, with a 28% increase in the cost of the average house in the UK.
However, the forecast for house prices over the next five years indicate that the market will slow in terms of growth but that it won’t necessary go into decline.
A popular estate agent has predicted that the housing market growth will half from 28% to 14% over the next five years which will be welcome news to those yet to get a foot on the property ladder.
The slowdown is thought to be due to Brexit uncertainty, interest rate increases as well as mortgage constraints. Many worry about the impact of Brexit and how this will impact on household finances as well as the impact should interest rates increase further and make obtaining a mortgage deal more difficult.
Understandably, people are wary about where the housing market is headed but there is still considered a chronic shortage of housing which underpins that growth will remain positive.
Should a further increase in interest rates occur, this will mean tighter regulation on the amount that people can borrow and in turn slowing down the mortgage and housing market.
Whilst predictions are just that, predictions, there are still plenty of fantastic offers available with great fixed rate deals that means should there be a further interest rate rise, the jump in rates won’t hit. A Mortgage Adviser can explain in further detail about this and find the exact right deal for you.
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