ccording to the findings of a recent report by the government, Powys has seen a 40 percent increase in mortgage rates over the past five years, which may prevent first-time buyers from making a purchase in the county.
The most recent statistics on the cost of mortgages across the UK have been issued by the headquarter of National Statistics (ONS), which reveals that the expenses for new homeowners have significantly increased since the year 2017 came to a close.
According to the collected information, the costs associated with obtaining a mortgage in Powys for a detached property have increased by an average of 46% over the past year, with the average cost shooting up increasing from under £250,000 to over £349,000 in December 2017.
The numbers are derived from a combination of factors, including rising home prices and higher mortgage rates on a nationwide basis.
The price of semi-detached homes has also increased by 45 percent, moving up from under £150,00 to over £230,000 at year’s end.
There has also been an increase in the value of terraced homes at a rate comparable to that of single-family homes. Terraced homes now cost an average of £178,000, which is a 43 percent increase from what they cost five years ago.
On the other hand, residents of the county who are interested in purchasing a flat have witnessed a more moderate increase, with the price going up by 25% to £104,000.
According to the findings of the survey, the situation in Powys is reflective of the grim national market. This is mostly owing to the significant increases in costs that have occurred over the course of the previous year.
According to the findings of the study conducted by the ONS, “The cost of borrowing money has gone up dramatically over the past year as a result of rising interest rates, which has led to a significant increase in the monthly repayments required for newly issued mortgages.”
In December 2022, housing costs were 9.8 percentage points more than they were the previous year at this time.
More than 1.4 million British households are at risk of interest rate hikes in 2023 when they resume their fixed-rate mortgages, according to new research by the ONS.
They also discovered that tenants are being forced to bear the burden of these fees.
According to the findings of a recent study conducted from December 7 to 18, 2022, about one-quarter of all renters claimed that their monthly payment amounts had increased in the preceding three months.