- 07
- Feb
House price growth is beginning to slow due to last year’s interest rates rises according to Halifax.
While the high interest rates have been slowing the growth in the housing market, they have also been making mortgage repayments for many home owners much higher as they have to cover the cost of higher interest rates on their loans.
Last month their was speculation that interest rates would be put up once again by the Bank of England, however last Thursday they decide to hold interest rates at their current levels because of a growing concern about the financial markets. This news should come as a huge relief to millions of homeowners who have seen their financial situations worsen in recent months.
January house prices showed a definite drop, showing that the housing market has gone past the point of a slow down into a definite fall. This is a definite sign that the Bank of England’s plan to bring down inflation is working. It does however leave many in fear of a negative equity situation should prices continue to drop.
However a crash is generally not expected because of the high levels of employment across the UK as well as a shortage in the availability of housing. So if you are one of the many homeowners who took out an interest-only home loan, you will need to give up any hope of moving for the meantime, until prices rise again.
