The rate of inflation is vital for a healthy property market.

Nathan Emerson
CEO of Propertymark

The housing market is one of the strongest indicators of wider economic health visible for all to see, in many ways, it closely tracks the real-world financial confidence of households.

There is little denying the housing market witnessed a tough year during 2023, not helped by people having to deal with high inflation and subsequent elevated interest rates.

With inflating holding steady at 4 per cent it should help create a sense of calm reducing the likelihood of interest rate increases when the Bank of England next meet and this would be a welcome relief for many people.

The start of this year is feeling more optimistic overall; however, it remains vital to stay on guard for a little while longer. As the rate of inflation does steadily trend back downwards, it tends to come with turbulence, and it is rarely a smooth or assured process.

There are positive signs with some lenders reducing their mortgage rates, however, this is not universal across the sector, with others nudging their rates upwards over the past few weeks.

During the second half of 2023, we saw a mass increase in the number of buy-to-let mortgages falling into arrears, which subsequently has taken its toll on the lettings market and is directly linked to the pressures felt by many landlords – some who are being forced out of the market completely.

Buying a new home or re-mortgaging is often a process that happens so infrequently that it never feels familiar or easy to approach. It’s important to have the confidence to ask questions of your chosen lender to help ensure you get the best possible deal to fit your circumstances. It can be important to consider the overall cost of any mortgage deal as an indicator of how well it might fit your budget.

Just like anything in life, it’s important to shop around if you are buying for the first time or potentially taking on a new mortgage deal. It’s normal that people have very different circumstances and will need a diverse range of mortgage products to potentially choose from. However, there is massive potential to save possibly thousands of pounds by finding the strongest deal available that caters to your precise needs.