UK Housing Market’s Spring Could Come Early
Declining rates and limited supply point to stronger property prices.
Properties for sale and sold in the window of an estate agents in London.
Photographer: Bloomberg/BloombergIt's been a tough winter in the UK, not just the weather but the stingy consumer spirit and the fumbling of Keir Starmer’s government. The Bank of England, though, is offering a brief ray of sunshine, even a cause for optimism if you look hard enough.
It doesn't take much to get the competitive juices of UK mortgage lenders flowing, and all the signs are there for cheaper deals to start emerging. UK house prices have held up remarkably well, having risen close to 25% since the start of the pandemic. Fundamentally, with no real signs of any notable uplift in new building coupled with robust wage growth, there’s simply not enough housing to go around on a small island with a burgeoning population. It’s as straightforward as demand being greater than supply.