House prices have dropped slightly, with many believing this is due to the rise in mortgage rates. But, Anthony Codling, a seasoned property expert, thinks mortgage rates aren’t the main factor.

Key Numbers:

1. House prices have dropped by 3% since last August.
2. There are around 28 million homes in the UK, and 17 million of these don’t have a mortgage.
3. The current value of the housing market is £8 trillion.
4. Average UK rent has increased by 10.3% over the last year.

Anthony Codling’s Views:

1. Impact of Mortgage Rates on House Prices: Many houses in the UK don’t have mortgages, meaning changes in mortgage rates don’t necessarily impact house prices as one might expect.
2. First-time Buyers: Some may be priced out due to rising interest rates, but many will still look to buy, especially if they receive financial support from parents (the “bank of mum and dad”).
3. Fixed Rate Mortgages: Even though mortgage rates have risen, many people have fixed-rate deals that protect them from immediate increases.
4. Affordability: The average person borrows 4.5 times their income when getting a mortgage. If two people buy a house together, they can borrow up to 9 times their combined salary, which usually covers the average house price.
5. Government’s Role: Governments, both past and present, have often intervened to support homeowners. For example, they’ve introduced mortgage payment holidays and stamp duty holidays in challenging times.
6. Political Influence: With an upcoming election, there’s a chance politicians will use housing policies to attract the massive homeowner voting block.
7. House Prices vs Transactions: While Codling anticipates a potential drop in the number of homes being sold, he doesn’t expect a dramatic fall in house prices.
8. Advice to Homebuyers: If you can afford to and feel secure about your future, it’s better to buy a house now. Historically, prices have been more likely to increase than decrease over a 10-year period.

In Simple Terms: While mortgage rates might be rising, they’re not the main driver behind house prices. Many homes don’t have mortgages, and there are other influences, like the government and individual financial circumstances, playing a bigger role. If you’re considering buying, the past suggests it’s a good idea to get in sooner rather than later.