The Bank of England has just announced that interest rates will remain frozen at the record low of 0.25%, with the UK economy having remained resilient over the last year and expected to do so for the foreseeable future.
Despite many believing that a mixture of Stamp Duty Tax changes and a Brexit vote would see the market crumble, UK property has remained a safe investment with prices continuing to increase despite these external influences. With rates remaining frozen this is likely to continue with mortgage rates remaining more affordable for struggling buyers.
Property expert and Emoov CEO, Russell Quirk, was on hand to provide his reaction and explain what this means for the UK market heading into 2017.
Today’s decision should act as validation for UK homeowners, that the overall market stability seen throughout 2016 should carry on well into 2017, with the UK property market remaining in good health.
With interest rates remaining as they are, the wider availability of affordable mortgage rates should further encourage potential buyers that now is as good a time as any to get that first foot on the ladder.
Some may even argue that a slight cooling in property values across the nation isn’t such a bad thing and will further aid struggling buyers and help to partially address the growing housing crisis in the UK, although those already on the ladder may not share such a view.
But a word of warning, those looking to buy should still do so wisely and not be encouraged to buy beyond their means due to today’s further rate freeze. It is inevitable that at some point, interest rates will increase and the “normal rate” being enjoyed currently could increase to three or four percent. Should this happen, those that are ill-equipped to deal with the escalating financial costs will find themselves in a very tough predicament.Russell Quirk