If anyone is looking for a 2 bed flat in Worthing...

[TeddyBeans]

Here's ours 🤣

Feel free to critique the listing, we had a fluke viewing the day after it went live and radio silence since... Would love to sell, the kids need their own rooms and we desperately want a garden

No, a small reduction in rates wouldn't make a difference at this stage. As I said, it made little difference in 24/25 already. As you say, mortgage defaults and negative equity will increase but that will be regardless of rates. I actually do think that rates will come down for a shortish period but this will be because of major economic problems. If houses in your area are accurately priced, they will sell quickly. That is the definition of well/accurately priced at any point.

Yes, some people becoming mortgage prisoners is already a reality - and that will increase for sure. Although unpleasant for those in that situation - its not as big a deal as you might think for the market itself. Only around 30% of UK housing stock is actually mortgaged. Of that 30% the majority is smaller loan to value borrowing. The proportion of borrowers that will become prisoners actually isn't big enough to stop the market functioning. It carries on without them. I've seen it happen twice in my life. Prices eventually fall to the point that things start working again. I dont expect this time to be much different - assuming the market is left alone to re-balance that is. Which is probably the only option for government presently. Timescale though is a difficult guess to make.

Let us know TeddyBeans when you have changed agents at the end of this month. So many opinions on interest rates and the market and nobody really knows what will happen !

You are once again missing the correlation between interest rates and prices, rates dictate prices, not the other way around.

Correct

Will do!

🤗