UK property values ‘hitting affordability ceiling’
10th February 2022 08:51
by Myron Jobson from interactive investor
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RICS House Price Balance survey paints an all-too-familiar picture of the UK property market.
Commenting on the latest RICS House Price Balance survey, Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “Demand for property far outstripping supply is now an all-too-familiar story in this property market and continues to push prices higher. Property values are hitting the ceiling of what many buyers can afford to pay.
“Wannabe homeowners are being forced out of the property market, with many delaying their plans to buy a property amid runaway price rises, and raising a sufficient deposit still poses a significant additional challenge.
“It will be interesting to see how the recent rise in the interest rate and the added pressures of the cost of living squeeze on household budgets will affect consumer confidence in the short term. Borrowing costs are still low by historical standards, but the bumper cost of homeownership is likely to exert a cooling effect on the housing market, which has come off the boil since the end of the stamp duty holiday.”
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