Interest rates are rock bottom, inflation is lagging economic targets and forecasts, but house prices are rising again. Can this continue, and where next for the housing market?
Investing in bricks and mortar has been a firm favourite for people and financial organisations for decades. We all need to live somewhere and aspiring to bigger and better homes has driven buying habits.
The same applies to commercial and industrial properties, although the Covid-19 pandemic has tested these sectors to the max.
Business premises and high street properties are having to find new levels, but the domestic housing market show no signs of stalling – even after a rocky 2020.
Escape to the country!
While commercial sales and rents have floundered, certain domestic settings have boomed.
The coronavirus pandemic has focused minds. It has made many of us think about the lives we live. Enjoying time, space and flexibility alongside working schedules has become a priority.
One driving force has been the considerable switch to working from home. According to a recent Guardian article, for the foreseeable future around half of the UK population will be working from home.
That means how we work and where we live becomes more important.
This is reflected in homebuying trends. According to Right Move, enquiries from city dwellers about moving to the country have doubled compared to last year.
Lockdowns, travel and visiting restrictions have meant that outdoor space is valuable. Properties with extra rooms, a garden and even driveway are the target of cooped up city dwellers.
Living the rural life was always popular, but the convenience and leisure opportunities provided by city regions had become increasingly popular in recent years.
That all changed in March this year. The housing market, viewings and transactions ground to a halt. People had time to reflect.
Finding the right mortgage
When we ask where next for the housing market, we must also ask where next for personal finances and mortgages.
Increased demand for rural spaces or homes with gardens will inevitably mean higher prices being asked by vendors.
Now, more than ever, it is essential that buyers get the best possible advice about mortgages. As demand for idyllic properties rises so too will asking prices. That could lead to a rise in inflation, and later a rise in interest rates.
The global economy remains in flux, but all scenarios should be explored with an independent mortgage advisor.
The housing market is resilient but second-guessing where it will head next is a fool’s game. Listen to the people who deal with it every day.
Speak to independent experts
Logic Wealth Planning has supported people and businesses with independent mortgage advice for many years. We have seen the housing market rise and fall.
Getting the right advice for your circumstances is vital. Mortgage advice that fits your lifestyle, is affordable and comes with the right income protection will mean peace of mind.
Helping clients achieve lifestyle goals is at the heart of our ethos. It means delivering a rounded package of advice that leaves no stone (or brick) unturned.
That way you can borrow with confidence whilst still achieving other lifestyle and financial goals.
Please call us on 0808 1234 321 or email firstname.lastname@example.org to start the discussion about how best to start enjoying income during retirement.
Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it.
* Logic Wealth Planning provides independent financial advice in Manchester, Bury, Rochdale, Cheshire, and the surrounding area, but not limited to the region.