The housing market is on a steady path to recovery, with property professionals’ expectations for an uplift in house sales at their strongest level since the start of 2022. According to a recent survey by the Royal Institution of Chartered Surveyors (Rics), a net balance of 20% of professionals expect to see a recovery in home sales over the next three months.
This upsurge in confidence can be attributed to recent cuts in mortgage rates by Britain’s biggest banks. The Bank of England base rate is also expected to be cut from its 16-year high of 5.25% to 5% at the next vote on August 1. This decrease in lending rates could prompt a further softening in mortgage rates, making it easier for people to buy homes.
The rental market is also showing signs of improvement, with a net balance of 28% of professionals seeing a pick-up in tenant demand in June. However, new landlord instructions fell by 11%, pointing to a renewed decline in new rental listings.
Despite these positive trends, the road to recovery is not without its challenges. According to Tarrant Parsons, Rics senior economist, “boosting the supply of homes will not be an easy task” for the new government.
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Meanwhile, half a million state pensioners have been warned that they owe up to £30,000 in mortgage debt. According to research by SunLife, retired mortgage holders owe an average of £33,627 on their mortgages, which could be used to fund their retirement.
Rising mortgage rates
House prices on the rise
State pensioners struggling with mortgage debt
Cutting car insurance premiums
For many retirees, paying off their mortgage is a significant burden on their modest pension income. However, by tapping into the equity tied up in their homes, they could release a significant amount of cash to do with as they please. This could be a lifeline for those struggling to make ends meet in retirement.
Releasing equity to fund retirement
In conclusion, the housing market is showing signs of recovery, with mortgage rates decreasing and house prices on the rise. However, there are still challenges to be addressed, particularly when it comes to state pensioners struggling with mortgage debt. By exploring innovative solutions such as equity release, retirees can unlock the value in their homes and live their golden years with greater financial security.
