There are a number of reasons why the UK property market is still strong, despite rising interest rates and the cost of living crisis.
High Demand:
Demand for housing is still high, particularly from first-time buyers and investors. First-time buyers are eager to get on the property ladder, while investors are attracted by the potential for capital growth and rental income.
Strong economy: The UK economy is still relatively strong, despite the recent challenges. The unemployment rate is low and wages are growing, which is supporting demand for housing.
Limited Supply:
The UK has a shortage of housing, which is pushing up prices. According to the National Housing Federation, there are 4.2 million households in England alone that are either overcrowded, in unsuitable or poor quality housing, or living in temporary accommodation.
Government support:
The government has introduced a number of measures to support the housing market, such as the Help to Buy scheme and the First Homes scheme. These schemes make it easier for first-time buyers to afford a property.However, it is important to note that the UK property market is not immune to the wider economic climate. Rising interest rates and the cost of living crisis are likely to have an impact on demand for housing in the coming months.
