8 November 2022 - Homeowners facing market dilemma

The continuing tightening of monetary policy is beginning to slow activity in the housing market. With mortgage lenders having withdrawn close to a thousand products from the market due to uncertainty over the path of long-term interest rates following the mayhem created by the recent mini-budget, borrowers are facing difficulty securing finances. The cost of building land reached its highest-ever level as limited supply, and increasing demand drove builders to reduce the stock levels in their land banks. Recent data showed that builders are slowing down housing starts, which will have a knock-on effect throughout the market. This is a significant factor in the slowdown in the economy, which will ultimately lead the country into recession.