Metro (London): The China Crisis - a positive spin-off for homebuyers
Mon 31 Aug 2015
THE slowdown in the Chinese economy is good news for prospective home buyers. When Bank of England Governor Mark Carney announced in early August that the time for rates to rise was drawing closer', there was a surge in activity in the mortgage market as people tried to take advantage of the historically low rates and get fixed deals.
This pushed up demand in the UK by 5.3 per cent last month, while the supply of homes remains acute in
London there were 20 people chasing each property for sale. But due to the global events last week, the rate rise is now likely to be pushed back and the market is set to calm down. Now the economic landscape has changed following the market slowdown in China we expect greater calm on the demand side,' said Paul Smith, CEO of Haart, the UK's largest independent estate agent. `But true balance will not be achieved until more homes start to come onto the market.'
The number of property transactions for July was virtually unchanged year-on-year, but there's still a shortage of homes on the market. There are now an average of 12 buyers chasing every property in the UK, according to Marsh & Parsons.