Following today’s Bank of England Monetary Policy Committee (MPC) decision to raise interest rates to 0.75%, our Chief Executive Officer, Jason Tebb, shares his thoughts on how this may impact the housing market.
“This latest interest rate rise was expected, given decades-high inflation, and we don’t expect it to quash the considerable buyer and seller sentiment in the housing market.
Even with another quarter-point rise, interest rates remain low. The housing market is undeniably more stable than the hectic scenes witnessed last year but even as more stock becomes available, it’s not keeping pace with pent-up demand. New listings aren’t hanging around for long, with 61 per cent of properties Sold Subject to Contract (SSTC) within 30 days of first being advertised for sale in February, according to our latest OnTheMarket Property Sentiment Index.
The housing market is adjusting to a ‘new normal’, distinct from the pre-pandemic market; an elevated, faster-paced version where a large number of highly motivated buyers are keen to move quickly and eager to compete with other likeminded buyers for the small number of available properties. Modest increments in interest rates are unlikely to result in a slamming on of the brakes as buyers realise that if they aren’t organised and prepared to be decisive, they risk missing out in this highly competitive market.”
