Property News · February 1, 2022

UK house prices make strongest start to a year since 2005 – business live


Rolling coverage of the latest economic and financial newsUK house prices rose 0.8% in JanuaryAnnual inflation hits 11.2% – strongest start to the year since 2005But market could cool as affordability becomes stretchedBank of England poised to raise interest rates as high inflation takes tollLast night: S&P 500’s worst month since March 2020New ‘super tax’ to deter energy firm owners from gas profiteeringIn the City, stocks have made a solid start to February.The FTSE 100 index of blue-chip shares has jumped 0.9%, or 70 points, to 7534 points.“Mortgage demand has picked up a little in the second half of January. But overall, we’re noticing borrowers are turning cautious, fearful of the economic outlook.While there is a fundamental shortage of properties on the market, and housing supply generally, all the factors on the demand side are going in the wrong direction. National Insurance, energy bills, the cost of food, fuel and mortgages are all going up. There could be a rude awakening in 2022 for those who believe house prices can only ever go up.” “Though the property market smashed it in January, the rest of the year will likely see a cool-down in the rate of price growth due to inflation and rising interest rates. However, values are unlikely to fall as mortgage rates remain exceptionally low, people are keen to avoid renting and the ‘race for space’ continues apace. As ever, prices are also being propped up by a chronic lack of supply.” Continue reading…

Source : theguardian.com
Read more…UK house prices make strongest start to a year since 2005 – business live

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