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What moved the property market? An update for buyers

With all the continuous changes in policy, rising inflation and increasing mortgage rates all having an impact on the property market, how can Connells help with your move? Read on for an update on what’s happening in the property market for buyers.

In the Spring Budget announcement, Jeremy Hunt and the Office for Budget Responsibility announced that they expect the UK will avoid a technical recession and inflation rates are expected to fall to 2.9% by the end of 2023†. This is good news for everyone and will have been followed by a sigh of relief from many. 

The property market is moving slowly, with buyers slowly returning to the housing market – up by 11% when compared to 2019* – and the average property price increasing by £14 this month (+0.0%) to £362,452 – the smallest increase from January to February on record*. The first quarter of 2023 has seen a more level market, even with the Bank of England Base Rate increases, currently at 4.25%**. As a buyer, the main effect is that it may influence your mortgage rate, as these have been increasing in line with the Bank of England’s Base Rate announcements. Additionally, despite Jeremy Hunt’s Spring Budget announcement from 15th March not mentioning anything property specific, the childcare reform may have a positive knock-on effect on mortgage affordability*** and therefore potentially affecting anyone looking to buy.

Another factor buyers should be aware of, are the investment zones that Hunt announced during the Spring Budget. Anyone looking to buy in these 12 zones across the UK – eight in England and four across Scotland, Wales, and Northern Ireland – may benefit from tax breaks and other factors that will help revitalise these areas, which therefore may turn out to be a potentially good investment†.

To find out more or how we can help you with your move, please contact your local branch.

Correct at the time of publishing – 18/04/2023


Sources:
*https://www.rightmove.co.uk/news/house-price-index/  
https://www.bbc.co.uk/news/business-64789405  
** Bank Rate increased to 4.25% - March 2023 | Bank of England

***https://www.gov.uk/government/publications/spring-budget-2023-labour-market-factsheet/spring-budget-2023-factsheet-labour-market-measures 

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