August - The Market Outlook

August - The Market Outlook

As a new month begins, there has been a palpable shift in the narrative surrounding the UK property market, and what the remainder of the year might have in store for both mortgage rates and housing values.

It comes after what has been a somewhat turbulent few months for the sector, but with current data now suggesting mortgage rates are reaching their peak, an end to recent affordability challenges might well (finally!) be in sight.

This indication that some lenders may begin to cut their rates will, of course, come as good news for the nation’s borrowers, whose budgets have been universally hit by higher-than-normal costs.

In the market town of Maidenhead, August's atmosphere of optimism is beginning to reflect in the number of property enquiries having been made in the last week alone. Compared to June, Braxton received a 22% uptick in viewing requests in July, indicating that at a regional level, the market is healthier than anticipated.

Luckily, this rebound in buyer activity is coinciding with a flurry of quality properties coming to the market, one of which is this delightful five bedroom detached family home, which has been extended and re-furbished to provide over 2,100 sq.ft of living space. Situated in the sought after "River Area" of Maidenhead, the property features a stunning "hub of the house" kitchen/breakfast/family room, a generous living room and south facing rear garden.


After surging to nearly 7%, it appears home loan costs may finally be close to peaking, with the average two year fixed rate deal having inched down from 6.86% to 6.81% in a mere three day period last week (according to Moneyfacts.)

Consequently, predictions for the number of interest rate rises still in store have been trimmed, with many big-name lenders including Barclays, TSB, HSBC and Nationwide slashing the rates of their fixed rate products.

This trend will no doubt make a small yet significant material difference to many borrowers, many of whom also have to their advantage, the fact that mortgage approvals are up to the highest level since October last year (54,662 in June.)

For trader-uppers, these arguably aren't the only drivers behind the last month's marked uptick in buyer motivation. As well, there's the additional persuasion of the South East's resilient housing values, which are only serving to reinforce the often false economy of 'watch and wait.'

Currently, 2 out of every 3 UK homeowners have seen the value of their property increase by at least 1% in the last year, with prices proving 20% higher than they were in July 2019 (2.6% higher than in January.)

This data tells a different story to one that many homebuyers and sellers might have been expecting, at this point in the year, and it is in some instances persuasion enough, to put the moving wheels in motion.