By Nathan Emerson, CEO at Propertymark

Inflation is a word that crops up often, yet many people aren’t quite sure what it means and how it affects them. Right now, it’s one of the most important things that affects households and put simply it’s a measure of how expensive prices have become over a certain period. This can affect everything from the price of your weekly shop, all the way to the price of housing and just about everything in between.

When the price of goods and services fly upwards, it’s important this doesn’t become too extreme that people simply can’t cope, so the UK Government set themselves targets for keeping inflation under control to ensure things remain workable for everyone.

Traditionally one line of attack used to combat high inflation is to use higher interest rates to slow people up on their spending habits. However, the only problem with this approach is that while it’s in motion households feel the pressure of both high inflation and high interest rates both at the same time. This can leave some people wondering how they will financially make it through each month.

From a house buying view, while this is all in happening it tends to throw what we all consider as ‘normal’ temporarily out of the window as people find their own personal safe ground regarding their finances. While people are hyper mindful of paying more for general goods and also a higher interest rate on their mortgage, big decisions such as buying a house or moving home tend to be popped on hold until there is confidence in being able to afford such big decisions. 

This is where the price of housing starts to see dips until people are again feeling reassured that they can afford their next dream house. According to Propertymark’s Housing Insight Report, 76 per cent of member branches recently found sellers are slashing their initial asking prices for their properties just to try and sell them,. The Housing Insights Report is conducted by Propertymark every month to look at trends affecting the UK housing market.

Interest rates have remained steady, which means the cost of borrowing remains the same. This however in the real world still means it remains tough going for those intending to buy or sell a house. To put this into perspective, we have not seen rates like this since the immediate aftermath of the 2008 recession, or since the effects of the Covid-19 pandemic became apparent.

It’s vital to stay in close contact with your mortgage provider should you ever find yourself in a position of not being able to keep up with potential repayments. It’s also essential to feel reassured that your lender will do their very best to help should you be encountering any difficulties or worries regarding any money related problems that could impact your mortgage.

No matter what kind of mortgage deal you are in, it’s always advantageous to think ahead where possible. It can be extremely beneficial to investigate alternative mortgage deals which may offer a better fit with your own personal circumstances. It is always advisable to keep your mortgage deal under constant review to ensure you are getting the very best overall deal available and one which is best tailored to your needs and personal budget.