Articles about anything relating to property, from the state of the market, to mortgages and investments & developments.
The Bank of England’s Inaction on Interest Rates is Choking the Economy
The Bank of England (BoE) decided against cutting interest rates this week, a move that many economists believe was a mistake. With inflation rising rapidly and the economy at risk of recession, a rate cut could have provided much-needed stimulus. In this post, I’ll summarise the key arguments made in a recent video about why the BoE should have reduced rates.
Reaction to the Bank of England Interest Rate Hold
The Bank of England’s Ongoing Incompetence
The latest decision by the Bank of England’s Monetary Policy Committee (MPC) to hold interest rates at 5.25% is yet another sign of the shocking incompetence we have witnessed from the Bank over the past year.
UK House Prices Start To Tumble
Introduction
According to the latest data from the Office for National Statistics (ONS), house prices in the UK fell 2.1% year-on-year in November 2023. This marks the first annual decline since the 2008 financial crisis and suggests the long-running UK housing boom may finally be over. In this blog, I’ll analyze the key factors behind the slide in prices and what it could mean going forward.
The Suburban Housing Boom Goes Bust: How the Pandemic Frenzy Led to Crashing Prices
When the pandemic first hit in early 2020, it triggered a mass migration out of crowded cities as people sought larger homes and more space in the suburbs and countryside. This surge in demand led to rapidly rising house prices in commuter belts and rural areas. However, three years later, the suburban housing frenzy has gone bust. Owners in these former hotspots are now suffering the steepest price declines as mortgage rates soar.
The Climate Change Mortgage Crunch
Introduction
Climate change is making it harder for some homeowners to get a mortgage or sell their properties. As extreme weather increases flooding and subsidence risks, lenders are declining more mortgage applications out of concern that homes could become uninsurable or worthless. This “climate change credit crunch” stands to impact millions of properties across the UK.
UK Housing Market Update – February 2024
Introduction
The UK housing market has seen much fluctuation over the past couple of years. With mortgage rates rising and affordability decreasing, there is still uncertainty around house prices and sales. This article will summarise the current state of the market and offer advice for buyers and sellers.
In 2009, central banks around the world slashed interest rates dramatically to near 0%. This was meant to be a temporary move to counter a short-term economic crisis. Markets and experts predicted rates would soon rise back to normal levels. However, for 13 years interest rates defied expectations, staying unusually low.
Widespread tenancy reforms, a high cost of borrowing and rising rents are just a few of the challenges facing landlords and tenants in 2024.
The government’s Renters Reform Bill is likely to steal the headlines, but uncertainty remains as to the future of no-fault evictions.
Government plans to revamp heat pump regulations stem from concerns about noise pollution. The objective is to steer manufacturers towards prioritizing noise reduction over aesthetic features in these systems.
Milestone mortgage rate offer signals turning point
This week marked a pivotal moment in the UK mortgage market – the arrival of the first mainstream lender to offer a 5-year fixed rate below 4%. Challenger lender Generation Home stunned many by launching a 5-year fix at 3.94% for a reasonable £999 fee.
