Forecasts and press reports that offer opinions on the state of the UK housing market are something that fascinate anyone who owns a property, or those trying to get on the property ladder. The shortage of affordable homes in the UK, alongside steep rises in prices in most regions of the nation in recent years, mean that the threat of a hike in interest rates by the Bank of England are a constant concern for some, while uncertainties surrounding June\u2019s EU referendum outcome could also have economical implications that impact the housing market indirectly.<\/p>\n
The Government\u2019s recent change to stamp duty thresholds on second property ownership, and the planned cap on buy-to-let mortgage relief from April 2017, were designed to stem property prices caused by high demand from landlords, and most experts predict a fall in demand from buy-to-let purchasers who no longer see it as a viable pension planning route. There are also calls for lenders to set a tougher criterion when lending to landlords \u2013 including their ability to make repayments should interest rates rise by 2%.<\/p>\n
Property prices have continued their recent trend, with 2016 already seeing prices rise again, and envisaged to hit between 3-5% over the remainder of the year \u2013 but that\u00a0may depend on the result of the EU Referendum on June 23rd.<\/p>\n
Much has been written on whether the nation will decide to stay part of the EU, or opt for the Brexit route, and whether there will be any impact in the UK property market only time will tell. However, April and May are traditional busy months for property going onto the market, so it will be interesting to see if there is a rise in the figures, with some owners looking to minimise their exposure to any potential downturns.<\/p>\n
A more straight forward way to protect your position would be to look at taking advantage of one of the many low-rate fixed mortgage deals that are currently on offer from lenders, or to consult with an independent mortgage advisor able to source products from across the whole lending market. At The Financial planning Group we offer the very best advice and help provide you and your family with the right deal for your circumstances.<\/p>\n