Will the Mortgage Market Review curb prices?
Some commentators are hoping that the MMR will edge some buyers out of the market and encourage more sellers to moderate their price expectations. But do we need to take the heat out of demand?
The property website Rightmove reported this month that their House Price Index revealed an all-time high national average asking price of £262,594. And although we’re seeing more properties coming to market this year than last year, supply is still very tight in many areas.
From June this year, the Financial Policy Committee (FPC) will have the ability to vary the affordability criteria and stress tests that lenders apply when assessing mortgage applications. This may result in more borrowers being unable to secure sufficiently large loans, or perhaps any loan at all. This could have far reaching consequences on the market and is a power that allows the Bank of England the option to take pre-emptive action to curb price increases, should it deem such intervention necessary.
The FPC meet next on June 17th and we’ll listen with interest to the assessment of Mark Carney and his team.
If you’re considering selling your home and are wondering what affect the current market conditions have had on it’s value, speak to your local Fenn Wright team. We have the market intelligence you need to know to bring you up to date with local selling prices.
Complete a free valuation request online and get in touch with your local office in Chelmsford, Witham, Stanway, Colchester, Manningtree, Ipswich or Kesgrave.