Dorset Property January Market Update
Dorset Property January Market Update
Whilst the Bank of England has raised interest rates to their highest level in 14 years, figures released by major lender, Halifax, have shown a 2.3% fall in house prices in November – the biggest fall since 2008. There is also positive news for homeowners struggling with the cost of living squeeze, mortgage providers have promised to do more to help. Read on to find out everything you need to know.
Interest rates rise again
In some bad news for borrowers, the Bank of England has raised interest rates to their highest level in 14 years.
The increase has taken the rate from 3% to 3.5% – the ninth consecutive increase and the forecast for 2023 is that rates will continue to rise, with analysts predicting a peak of 4.5%.
The latest increase means that homeowners with tracker mortgages will face extra repayments of £49 per month on average, while those with variable mortgages will be paying an extra £31 per month.
House prices see biggest drop in 14 years
Figures released by major lender, Halifax, have shown a 2.3% fall in house prices in November – the biggest fall since 2008.
This marked a third consecutive month in which prices have fallen, with the average house price currently sitting at £285,579.
While the fall might sound concerning for some homeowners looking to sell, the rapid rise in asking prices over the past few years means that annual growth in property prices is still 4.7%, with prices having increased £46,403 on average since March 2020 when the Covid pandemic began.
Mortgage lenders pledge to help borrowers
In some positive news for homeowners struggling with the cost of living squeeze, mortgage providers have promised to do more to help.
This follows a meeting between major lenders with Chancellor Jeremy Hunt, the chair of the FCA and Money Saving Expert’s Martin Lewis.
The help will include allowing borrowers who are up to date with their payments to switch to a new mortgage deal without having to do another affordability test, letting customers switch to an interest-only mortgage for a set period of time, and increasing the mortgage term to lower the monthly repayments.
Lenders have also pledged to provide more tailored support for individuals, with highly trained staff on hand to help those struggling.
The 10 Happiest Places to Live Revealed
A survey by Rightmove has revealed the UK’s top 10 happiest places to live, with St Ives in Cornwall taking the top spot for the second time in three years. Average asking prices in the pretty coastal town are the highest on the list, at £523,731, while second-placed Galshiels in Scotland has the lowest asking prices, at £153,546.
Last year’s winner, Hexham, has dropped to the fourth spot and is one of six English towns on the list, which also includes three Scottish towns and one in Wales.
For more property news and updates and a more specific overview of the Dorset property market, get in touch with Dorset Property. We are your local property experts. Call us on 01305257357 or email heretohelp@dorsetproperty.co.uk.
Added: 1st January 2023
