According to the Nationwide Building Society house prices have continued to rise steadily, and the biggest threat to this growth is affordability. But they have also said that the lack of housing would keep demand high, minimising this effect and other negative factors.
The building societies research has found that mortgage repayments now account for 42% of take home pay, compared with only 32% three years ago. It has been calculated that the value of the average home now stands at £165,730, and is increasing by £22 per day.
Our view
There is pressure to increase interest rates again although consumers have started to spend less. If you plan to buy a home consider your interest rates and affordability issues carefully
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