The cost of buying a property in Hounslow has moderated somewhat in the last year, with prices either falling, or only rising by modest levels, compared with the high house price inflation seen in previous years.
However, this has not come in isolation, with many struggling to make ends meet in a cost-of-living crisis that has made it harder for many to save for deposits or other removal costs. In addition, mortgage costs have soared, chiefly because of 14 successive interest rates made by the Bank of England to combat the inflation that has squeezed households so badly.
While existing mortgage holders with tracker or standard variable deals have been hit instantly and those on fixed deals have been left with the prospect of a hike in repayments in their next deal, others may have been deterred from seeking a mortgage. But things are changing.
The latest meeting of the Bank’s rate-setting Monetary Policy Committee (MPC) this monthkept the rate frozen at 5.25 per cent after a 7-2 vote, with the dissenters advocating a 0.25 per cent cut. But as the MPC minutes acknowledged, inflation is now back at its target level of two per cent and is only expected to increase modestly later in the year.
Perhaps the most telling recognition that the next meeting on August 1st is likely to bring a rate cut was a statement in the minutes of the MPC meeting that said: “The Committee recognised that the stance of monetary policy could remain restrictive even if Bank Rate were to be reduced, given that it was starting from an already restrictive level.”
Moderating inflation isn’t the only factor, of course. With an election looming, any expectation that the government emerging afterward would take action that would impact rates - as happened dramatically after Liz Truss began her crash-and-burn 49-day stint in office - would have to be a factor. But none of the main established parties promise this.
Indeed, a Rightmove survey has revealed 95 per cent of people have no intention of changing their plans due to the election, with property expert Tim Bannister observing that elections seldom have much of an impact on such decisions.