If you are currently arranging a move, remortgaging your property or simply looking to discuss your options – these market updates, with the support of our brokers, will help you navigate the complex and ever changing world of mortgages.
Throughout this market update, we’ll compare current trends to those from the same period in 2019, providing insight into what clients can expect from a “normal” property market. Find out more information about the UK and London property market in 2023 here.
In recent weeks, we’ve seen a promising trend: the number of home sellers accepting offers from buyers has returned to pre-pandemic levels seen in 2019.
Also, homeowners many of whom have recently faced a sharp increase in mortgage costs – can now take heart in some good news. The International Monetary Fund (IMF) predicts that Ultra-Low Interest Rates will make a comeback as inflation is expected to decline soon.
According to the financial agency of the United Nations, inflation is expected to be contained and interest rates are projected to return to pre-Covid levels.
London is once again attracting home-movers and overseas investors
In response to the pandemic, many individuals sought to relocate to rural and coastal areas for access to green space and proximity to beaches. However, there has been a recent shift in trend, with a growing number of people looking to move back to the cities, particularly to the capital. The studies show:
- Increase in sales agreed in recent weeks has largely been for flats, especially in London, which has seen an 11% rise in sales compared to March 2019.
- Sales agreed for flats alone in the capital have surged by 23% in the same period.
- In addition to London, three other religions in Great Britain have also seen a rise in home sales agreed compared to 2019: The North East (+5%), Scotland (+2%) and South East (+2%).
- In the South West, sales agreed have remained consistent with the levels seen during the same period in 2019.
You can also find out more information on the top 5 hotspots to live in London here.
What is happening with mortgage rates with the Ultra- Low rates prediction?
Although interest rates have reached their highest point in 14 years, the prediction of ultra-low interest rates is expected to have an impact on mortgage rates. With inflation project to decrease, it is anticipated that mortgage rates will decrease rapidly.
Based on our analysis, the recent surge in real interest rates is expected to be short-lived. Once inflation is stabilised, the central banks of advanced economies are likely to reduce monetary policy and bring real interest rates back to their pre-pandemic levels. However, the extent to which they will succeed in doing so will depend on whether other factors such as persistently elevated government debt and deficits or financial fragmentation come into play.
Are you an overseas resident? You can download our Foreign National and Expat Guide to get an idea of how you can borrow and apply for a Mortgage as an overseas client.
