Every three months, the Bank of England Monetary Policy Committee (MPC) forecasts the likeliest path for growth in the UK economy over the next 2-3 years in its Inflation Report. Based on a mid-range outcome for Brexit, the MPC’s latest forecast for housing across the UK is that mortgage approvals are projected to remain stable and UK house price inflation is expected to rise by a little over 3% by mid-2019. The MPC also thinks that GDP growth in the UK will stay around 1.5-2% over the next 2-3 years, meaning interest rates may rise, but only slightly at 1.25%.
Andrew Barry, Peter Alan Managing Director said, “The view of the Bank of England is great news for potential sellers, and indeed the economy as a whole, as it shows confidence in the current housing market with positive signs that house prices will rise going into the new year.
“Over the past few years, the market has been stable, with mortgage approvals remaining unchanged since mid-2016 despite low interest rates,” continues Andrew. “It is a positive sign that despite the uncertainty of Brexit, this is set to continue into 2019.”
If you would like to arrange a free market appraisal of your property, contact your local Peter Alan branch today.