Adam Oldfield, chief revenue officer at Phoebus, says:
“Predictions of another fall in inflation were premature, it appears. Not the best news for those watching the Bank of England’s every move and hoping for the first drop in the base rate. However, all the signs in the housing market in the first few weeks of 2024 have been positive. House prices didn’t take the tumble that was expected in 2023 and mortgage rates continue to fall. Although, the headlines will be jumping out this morning the reality is that unemployment isn’t going up and wages are ahead of inflation. It’s definitely not all bad news.
“The problem in the long term is, as always, supply. House prices didn’t fall, as was expected, because fewer properties came to market and failed to meet demand. There, is no quick fix for that problem, so lenders and brokers will have to be creative and look for every opportunity in the coming months. As we head towards spring, if rates continue to look more favourable, we could see more homes come on the market. It’s still a positive picture at the moment, but there are a few ifs.”