“Annual house price growth turns negative in February, Nationwide”

Mar 1, 2023 | Housing market

Negative growth. What a great and typical piece of economists’ jargon. I think they mean house prices actually fell last month. Not a surprise, as they seem to have continued to increase exponentially, defying supply-and-demand logic, given the number if new developments on every brown and green field and the huge hike in mortgage interest rates. Anecdotally, however, the picture is very different. Those trying to buy tell me they’re having to joino queues to view eligible properties, and that there’s still no chance of getting the house you want unless you offer over the asking-price odds. So I guess that’s the danger of averages and statistics, that, depending on the type and location of the place you’re trying to buy or sell, some are indeed damn lies Not much will really change until and if people start to lose their jobs; and that’s really not the way we want homes for our kids to become more affordable.

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brown and white houses under blue sky during daytime
“First-time buyers’ borrowing power hit by affordability stress”

“First-time buyers’ borrowing power hit by affordability stress”

Lenders have to assess whether or not you can afford a mortgage, and in recent years this has meant ‘stress-testing’. That’s not just how you react to the spectre of 3 or 4 prime ministers in the space of less than a year or a commute on the M25; it’s whether you’d be able to make your monthly repayments if interest rates went up still further.