UK HOUSE PRICE GROWTH SLOWS IN MAYRecent news reports have suggested that UK house price growth has been slower than expected, so we asked our MD Tom Soane for his take.
“Property prices should start to come down a bit over the next couple of years because people can’t borrow as much, bad news for owners.
Generally speaking, normal property prices are dictated by first time buyers. If mortgage rates go up, first-time buyers can’t borrow as much. That means the second-time mover won’t get as much for their property and subsequently they can’t offer as much on their next property and so on and so on.
Don’t worry though, it’s all relative and we’re not talking massive differences around the Portsmouth area.
Add economic uncertainly into all this and you’ll start to see less buyers and more people trying to sell. If you follow the simple supply and demand rule, prices will come down.”