Following today’s Halifax House Price Index, Kay Westgarth, director at Standard Life Home Finance has commented.
He said: “While bricks and mortar have intrinsic value, the amount a person is confident and comfortable spending on a home also plays a role. After thirteen consecutive Bank of England base rate increases, consumers are cautious and concerned about not only meeting affordability criteria but also managing repayments which has seen house prices fall.
“Although unsettling, it is important to remember that inflation – which is driving these rate increases – is expected to fall during the second half of the year so we should see more stability. Fundamentally, the UK property market is robust and given the ongoing undersupply of properties, homeowners should eventually see growth return.
“That said, we do not know when rates will start to fall so borrowers need to ensure that they are not complacent and consider all their options – including those outlined in the recent Government support measures. This is especially true of older homeowners who may have intended to carry borrowing into retirement but now find that their income no longer stretches as far as it once did.
“Speaking to a specialist adviser can help them to make smart financial choices which work for both the long and the short term.”
