Responding to the latest figures from Rightmove showing average monthly mortgage payments have fallen by £119 year-on-year, Nathan Emerson, CEO of Propertymark, says the reduction will offer welcome relief to households, but warns affordability challenges remain.
“A year-on-year reduction of monthly mortgage payments is welcome news. Many households have endured significantly higher housing costs in recent years due to the cost-of-living crisis, so this level of saving will make a meaningful difference, particularly alongside expectations that energy bills may fall from April.
This improvement is likely being driven by lenders responding to reductions in the Bank of England base rate, resulting in more competitive and affordable mortgage products coming to market.
With inflation now at 3 per cent and moving closer to the Bank’s 2 per cent target, there is cautious optimism that further base rate cuts could follow later this year. That would help ease cost pressures for millions and could stimulate additional activity across the UK housing market.
However, while this reduction is encouraging, affordability challenges have not disappeared. Many homeowners coming to the end of fixed-rate deals may still face payment shocks, and prospective buyers, particularly first-time buyers, continue to struggle with deposit requirements and overall housing costs. Lower mortgage rates must be supported by improved housing supply and targeted assistance if we are serious about enabling more people to step onto and move up the property ladder.”
