Catherine Mann, who is a member of the Monetary Policy Committee of the Bank of England, has detected signs that the housing market in the United Kingdom is experiencing a “revival.”
Following the news that Halifax reported an increase in the cost of housing in the month of February, also decreasing mortgage rates and more competitive products offered by lenders, the member of the BoE’s MPC who is responsible for setting the base interest rate made this observation. The MPC is responsible for setting the base interest rate.
During an interview with Bloomberg TV, Mann made the following statement: “We have seen a decline in mortgage rates from the peak reached the previous autumn, and we have seen an increase in the amount of competition of products offered by various lenders.”
“This leads me to believe that there is a greater revival in the works as opposed to a downward trend that is still continuing.”
In spite of the current favourable trend, the vast majority of analysts believe that housing prices will go down throughout this year.
Nevertheless, Mann dismissed fears over the possible consequences of a market crash, pointing out that The falls are starting to come down off the back of a considerable spike in prices of 28% since the beginning of the pandemic.
There has been a slight decrease in price, but it is not significant when compared to very high prices have, on average, increased over the course of the past couple of years. She said that the starting point is something that needs to be taken into consideration.
According to Halifax, the price of housing increased by 1.1% month-over-month, marking the second increase so far in 2018, and by 2.1% when compared to one year earlier.
According to recent statements made by Kim Kinnaird, director of Halifax Mortgages, “Mortgage rate reductions, rising consumer confidence, and sustained strength in the labour market may all be factored in the recent stabilisation of prices after the steep drops in November and December.”
Having said that, Kinnaird continued by saying, “Despite the fact that housing prices have been dropping quarterly, underlying activities continue to signal a decreasing trend.”