Rightmove shays the current housing market – which it depicts as seeing static house prices and lower mortgage rates – benefits south of England buyers most.
Across Great Britain, the average monthly mortgage payment is currently £1,506 per month, versus £1,590 per month last year, an £84 drop. The average asking price for a home is £370,257.
The analysis is based on buyers purchasing a home at the average asking price, with a two-year fixed mortgage rate, and spreading the cost of the mortgage over 30 years.
However, with average asking price trends varying regionally, affordability improvements are benefitting buyers in London and the south of England more.
In London, where average asking prices are now 1.1% lower than at this time last year, someone purchasing a home at the average asking price could save £181 on a monthly mortgage. In the South East it’s £120 per month, and in the South West it’s £106 per month.
By contrast, in Scotland where the average asking price for a home has risen by 2.3% compared with last year, a typical buyer is only saving £23 on monthly mortgage costs versus last year, as house price increases keep closer pace with mortgage rate drops.
In the North West it’s a £24 saving, and in Yorkshire & The Humber it’s a £36 saving in monthly mortgage costs versus last year.
Over the last year, the average two-year fixed mortgage rate has lowered from 4.99%, to 4.53% now.
Colleen Babcock, Rightmove’s property expert, says:“Competition amongst sellers to find a buyer is more heated in London and the south of England, while higher stamp duty rates have hit these regions harder, both contributing to lower asking prices compared to last year. The result for buyers is improved affordability when combined with lower mortgage rates, and the higher rate of agreed sales compared to last year suggests many are taking advantage. However, it’s still much more expensive to purchase a home in London and the south of England compared to other areas of Great Britain, so affordability is still stretched despite the increase in purchasing power.”
And Matt Smith, Rightmove’s mortgage expert, adds: “We’re widely expecting a hold in the Bank Rate today. It will be particularly interesting to see how the Bank votes and its wider commentary around today’s decision to get a sense of how the next couple of months could play out. Although mortgage rates have trickled up in recent weeks as mortgage financing has become more expensive, we’re still seeing appetite from lenders to do business in what is typically a busy period for them.”
This article is taken from Landlord Today