With plenty of questions surrounding interest rates, housing supply, and whether now is the right time to buy, Love Belfast Business chatted to Sam Mulholland to provide some clarity and insights that could help you make informed decisions.
The housing market in Northern Ireland remains robust, despite recent economic challenges. Compared to other parts of the UK, Northern Ireland boasts some of the highest levels of homeownership, with 57% of the population owning their own homes. That reflects not only the strong desire to own property here but also a resilient and accessible market that continues to attract buyers, including first-time homeowners and investors alike.
Northern Ireland’s property prices remain relatively affordable compared to other regions, such as the South East of England and even parts of Scotland. This affordability has made Northern Ireland a favorable option for those seeking good value without compromising on quality of living. In 2023, the market experienced a more subdued period due to high borrowing costs and concerns over interest rates. However, as we enter the second half of 2024, the landscape has shifted positively, offering renewed hope for both buyers and those looking to remortgage.
Interest rates have been a hot topic in recent months, and rightfully so. After holding steady at 5.25% for an extended period, the Bank of England recently made the decision to cut the base rate to 5%. This reduction, although seemingly small, has already sparked a competitive response among lenders. Major banks and building societies have started reducing their mortgage rates, some even dipping below the 4% mark. This is fantastic news for prospective buyers and existing homeowners considering remortgaging.
The current reduction in interest rates is a signal that the economic environment is beginning to stabilise. Inflation, which peaked at 11.1% two years ago, has now fallen back significantly, reaching around 2.2%. This progress is allowing lenders to offer more attractive deals, providing much-needed relief for borrowers who may have felt the squeeze over the past year.
For those considering a move, whether to buy their first home or to remortgage their existing property, these falling rates represent an opportunity to secure a more favorable mortgage deal. As lenders compete for business, we’re seeing a wider range of products on offer, providing more choice and flexibility to buyers.
One of the factors that has continued to support the housing market in Northern Ireland is the balance between supply and demand. Unlike some regions in the UK that have struggled with significant housing shortages, Northern Ireland’s market has maintained a relatively healthy level of supply. This availability helps to keep price inflation in check and ensures that buyers have options when looking for their ideal home. The combination of a stable supply and competitive mortgage rates makes Northern Ireland an attractive location for those wanting to step onto or move up the property ladder.
There’s always a tendency to wait for the “perfect time” to buy a home, particularly when economic conditions are in flux. However, waiting too long can often lead to missed opportunities. Here’s why now might be the best time to act.
The recent cut in the base rate and the competition among lenders mean that mortgage deals are currently at some of the most attractive levels we’ve seen since before the pandemic. While it’s impossible to predict future rate changes with certainty, it’s worth considering that the longer you wait, the greater the risk of missing out on these low rates. Locking in a deal now could protect you from potential increases later.
Property prices in Northern Ireland are still relatively affordable, especially compared to other parts of the UK. The market conditions are conducive for both first-time buyers and those looking to upgrade. By buying now, you’re positioning yourself to take advantage of the region’s growth potential without the inflated costs seen elsewhere.
With more stability in interest rates and inflation under control, buyer confidence is on the rise. This renewed optimism is driving increased activity in the housing market, which is reflected in recent price increases and sales volumes. Acting now allows you to benefit from this momentum while choices are still plentiful and competition hasn’t reached peak levels.
For those already on the property ladder, remortgaging could save you a significant amount of money each month. With many deals expiring in 2024, taking advantage of lower rates today could secure financial stability and even free up some equity for other uses.
The Northern Ireland mortgage market is in a much more positive position than it was just a year ago. With reduced rates, stable housing supply, and renewed confidence, now is an excellent time to consider buying or remortgaging. At Crawford Mulholland Financial, we’re here to help guide you through the process, making sure you get the best deal possible in a rapidly changing market.
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