Why lower inflation matters
Inflation measures how quickly the prices of goods and services increase over time. When inflation begins to fall, it eases pressure on household budgets and gives consumers greater confidence to make significant financial decisions, such as moving home.
Lower inflation also has an impact on mortgage lending. Although there is no guarantee that mortgage rates will immediately decrease, easing inflation gives lenders and the Bank of England greater confidence that borrowing costs may stabilise or reduce over time. Increased competition between lenders helps to improve mortgage affordability for many buyers.
Good news for buyers
Lower inflation also means everyday household costs are rising more slowly, helping purchasers budget with greater confidence for the costs of moving and home ownership. As mortgage rates become more competitive, monthly repayments become more manageable, allowing some buyers to borrow more comfortably or widen their choice of properties.
Why sellers should be encouraged
A healthier market for buyers is equally positive for sellers. When borrowing becomes more affordable and confidence improves, more buyers are able to secure their next home. The increased buying power underpins agreed sales, helping towards the successful completion of transactions.
Industry experts have also highlighted that easing inflation supports overall market confidence, creating a more stable environment for both buyers and sellers to make informed decisions. As affordability improves, transaction levels can increase, helping to keep the housing market moving.
What we’re seeing locally
The latest inflation figures reflect many of the trends we are already experiencing across North Hampshire and Surrey.
Well-presented homes that are priced in line with current market conditions continue to attract great levels of interest, with plenty of viewings and enquiries. Market confidence has been steady throughout the past few months, with many purchasers recognising that waiting for the “perfect” moment can often mean missing out on the right property.
At the same time, sellers who launch their property with our finely executed pricing strategy are benefiting from increased buyer activity and a market that remains resilient, regardless of the wider economic environment.
Whilst inflation remains above the Bank of England’s long-term target, June’s figures are another great step in the right direction.
If you’re looking for a local property, feel free to take a look at our homes for sale, here. If you’d like to discuss how current market conditions could work in your favour, please contact your local office for advice tailored to your market. Alternatively, you can book a no-obligation valuation, here.
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