| It is of little surprise that recent interest rate rises | | | | in the market as people downsize to cheaper |
| have taken its toll on house prices across the UK. | | | | properties creating a demand for first time buyer |
| The number of new mortgage approvals in the | | | | properties. It all boils down to the old fashioned |
| UK fell to a 12-month low in April, Bank of England | | | | fundamentals of affordability. |
| figures show. Mortgage approvals totalled 107,000 | | | | Property indices suggest growth had already |
| in April, down from 111,000 in March and the third | | | | started to cool off in the months preceding last |
| monthly decline in a row. In a further indication of | | | | week’s base rate rise. |
| weakening buyer demand mortgage lending rose | | | | Research from Nationwide, for example, showed |
| by £8.9bn, much less than expected and the | | | | that average house price growth between |
| weakest rise since September. | | | | February and April fell to just 2 per cent – the |
| "The Bank of England will be comforted by | | | | lowest three-monthly increase since last August, |
| today's news which shows its monetary tightening | | | | when the recent cycle of rate rises began. |
| is taking effect," said Thushani Gajasinghe, an | | | | Prime locations such as London are also more |
| economist at the Centre for Economic and | | | | immune to interest rate rises because of a high |
| Business Research. | | | | level of cash buyers and overseas investors. But |
| "With a further quarter-point rate increase | | | | other areas – such as the north-west and the |
| possible in the third quarter, consumer lending | | | | East Midlands – are more vulnerable. Although |
| may cool further." | | | | wages have also increased, homeowners are |
| But now, after a fourth quarter-point interest rate | | | | having to set aside a higher proportion of income |
| rise in just nine months – and another | | | | to cover their mortgage. |
| seemingly on the horizon – are the bears | | | | If you are having difficulties with servicing your |
| among the property commentators finally about | | | | mortgage debt, Sell Your Home Quick are happy |
| to be proved right? | | | | to provide advice on getting your payments back |
| So what does this all mean for the property | | | | on track. And we will endeavour to help those |
| market at the moment? | | | | unfortunate to have repossession orders up until |
| It would seem to reconfirm that we are | | | | the last few days of eviction. We will also rent |
| essentially in a flat market still, except London | | | | the property back for a desired period of time at |
| who are experiencing double digit growth still. All | | | | a rent you can afford. |
| this may change off course if interest rates rise | | | | James is the founder of Sell And Rent Back. The |
| any further, as those with the largest mortgages | | | | site is to help those who wish sell their house |
| will be hit the hardest. This could mean a transition | | | | quickly, professionally and with minimum hassle. |