With first-time buyers unable to get a mortgage and landlords hiking up rents, it’s a vicious cycleUK house prices are falling. In the year to February, prices fell by 1.1% to reach their lowest level for over a decade. The drivers are clear: inflation and rising interest rates are combining to put off mortgage borrowers. Approvals are at the lowest rate since 2009.Without hefty government intervention, the current negative trajectory will continue. If inflation remains above wage growth, buyer confidence will remain low. On the other hand, if wages start to accelerate, the Bank of England will almost certainly ramp up interest rates to avoid further inflation, which will also dampen the demand for mortgages. Continue reading…
Source : theguardian.com
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