Has Housing Market Peaked?

August 3, 2022

There are many challenges facing those who have chequered credit histories when it comes to trying to obtain a mortgage. While bad credit mortgage brokers may be able to help find the best available deals, there have been a number of other considerations for would-be buyers to consider.

Among these have been two potential deterrents to buying in the first half of 2022; the high rate of house price inflation and a succession of interest rate increases, although the latter has risen from record low levels.

However, this may now be changing, according to the Royal Institution of Chartered Surveyors (RICS). Its surveys focus not on specific prices but on how many more surveyors report rising prices over the number representing falling prices, or vice versa.

In the latest survey, prices still rose overall, but the increase is losing momentum, suggesting that the market is losing momentum and prices might even start dropping soon, making property more affordable for mortgage seekers.

Overall, 65 per cent more respondents reported a rise in prices, still above long-term averages but down on the plus 78 per cent balance seen in April.

Moreover, the majority of surveyors revealed a drop in new buyer enquiries, apart from in London, suggesting demand – a key driver of prices – is falling.

Speaking to the Daily Telegraph about the findings, Shropshire-based estate agent Mark Wiggin said: “The market has definitely turned. Fall-throughs and renegotiations are now taking place.”

All this could be very good news for those seeking lower prices, although many will keep an eye on interest rates, which are expected to rise again soon.

Speaking earlier this month, Bank of England governor Andrew Bailey said the rate-setting Monetary Policy Committee will “act forcefully” to curb any further inflationary pressures faced by the economy.

“Bringing inflation back down to the two per cent target sustainably is our job, no ifs or buts,” he emphasised.

Your home may be repossessed if you do not keep up with your mortgage repayments.

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