London’s housing market has been in a slump recently as mortgage interest rates have climbed higher and higher, as real estate expert Nick Millican explains. Mortgage affordability is often out of reach for families that could have afforded to purchase a home in the past.
The rising cost of living in other sectors such as healthcare and food have also put a damper on the housing market, as people cannot afford to buy a house along with managing the other costs of living and the increased costs of general inflation. While interest rates are holding steady at 5.25%, affordability is still an issue for many families who want to buy homes and find themselves unable to afford it, Nick Millican adds.
Nick Millican further explains about these changes. He says that as less people buy and more people continue renting, this has created a competitive market for rentals which has forced the prices to rise on rentals even more than in the past.
Landlords are finding a market where they can basically charge what they wish, and someone out there will be willing to pay the rates even if they are not fair for the property that is being rented. Asking prices of the homes that are on the market keep going up (Twitter).
The rentals that are available are consistently getting more expensive for families to afford. Unfortunately, the problem is not one that automatically resolves itself. London has been one of the hardest-hit markets when it comes to rising rents and fewer people being able to afford to purchase a home for themselves and their family. As Nick Millican finally states, the problem is projected to continue well into 2024!