Call 01743 241181 for friendly & expert advice

Latest News

Search Sales
Search lettings

Residential property holding good against uncertainty

“The most recent news of a snap election is unlikely to have a significant affect, given the unusually short run from the announcement to ballot day, resulting in less time for hesitancy pre-election and therefore less impact on transactions,” says Alistair Hilton head of sales Balfours.

Figures released this month by two leading mortgage lenders suggesting a slowdown in residential property price growth are contradicted by figures released by the Office of National Statistics (ONS).

Making sense of the property market in uncertain times, Alistair, says the ONS figures take into account cash buyers, who are driving house price growth. “It is unusual for cash buyers to be spearheading the market, because they think they can use their ability to pay cash as leverage.”

He continues: “Those securing mortgages are finding wage growth at 2.3% is factored in; while this is satisfactory, once today’s increased inflation, currently at 2.1%, is accounted it only leaves 0.2% growth advance. As a result anyone looking to secure a mortgage is feeling the pinch.”

However on the plus side, the adverse effect of inflation rising rapidly, mainly due to Brexit and the fall of the pound against cost of imports, is driving the banks to be more imaginative.

Alistair explains: “Off-set mortgages are becoming more common. This is where the purchaser has a healthy deposit, but only allocates an amount equating to 15% of the loan value. The balance is retained in savings to be deployed to other major purchases, such as car or holiday but the interest accrued is used to pay off the interest on the mortgage.


Subscribe to our newsletter

The Balfours email newsletter is the best way to keep up to date with new properties and the goings on at Balfours.

You can subscribe online here. We will never share your details with third parties without your consent.