Rising interest rates in UK real estate
In January 2022, Market Financial Solutions released a report about the UK property market. The researcher surveyed 2001 UK residents (all adults). The report provided a number of different stats and predictions about the industry this year. One of those statistics was the fact that about 66% of potential UK homebuyers are concerned about the rising interest rates.
Therefore, they are not sure if they’ll be able to purchase a home for themselves because of other factors as well, including higher house prices and increasing inflation. Here’s what you should know.
UK Residents Who Want to Buy Property
The report also revealed that a number of UK residents planned to purchase property in 2022. 18% of adults in the UK wished to purchase property in this particular year. In addition to that, 14% of existing renters planned to purchase their first property during this year.
14% of UK adults who already owned property planned to buy a new home after selling their existing home. On the other hand, 6% of property owners planned to purchase a new property as a form of investment.
Predictions of the Prices
When you consider all of the statistics above, it’s evident that the intent to purchase property in 2022 in the UK is strong. However, a great number were convinced that house prices would increase. 63% of all the respondents believed that the prices of real estate in the UK would increase in 2022.
29% of the respondents predicted that there would be no increase at all. In contrast, there were 8% of respondents believed that the prices would reduce.
Considering several respondents considered an increase in prices, it’s no surprise that 66% of potential UK homebuyers were concerned about losing their dream of buying and owning a home in 2022 due to the rising interest rates, increased house prices, and increasing inflation.
How Increasing Interest Rates and Inflation Could Affect Current Homeowners
The report by Market Financial Solutions also mentioned that 19% of existing homeowners were concerned about keeping up with their mortgage payments due to increasing interest rates and inflation. Therefore the increase in these rates presents problems for potential homebuyers in the UK and homeowners alike.
How Increasing Interest Rates and Inflation Could Affect Renters
Renters who planned to get into the housing ladder are also worried that they may not be able to do so because of the rising interest rate, house prices, and inflation. 28% of them claimed that the shifts in these factors would be a significant threat to their home-buying plans.
Last Few Words
It’s evident that potential UK homebuyers are concerned about the rising interest rates, house prices, and inflation. So, if you’re looking to buy a home, it may be in your interest to start looking for one and securing it sooner than later, as the prices may simply continue to increase.