The current boom in the housing market is certainly being sustained because of low interest rates. Home buyers, home movers, and landlords are motivated by the low cost of borrowing despite reports of higher asking prices from sellers. In securing a low interest rate a home buyer could save a substantial amount of money making it worthwhile to take action while rates are low.

The UK housing market has been a bit of entertainment for those watching. It would have been the bet of the decade had someone offered odds on the market outperforming all expectations and actually thriving during a global pandemic. Yes, it has surprised, and not only has it surprised experts, but it continues to cause them to reissue forecasts as the demand pushes strongly onward and upward.

The average asking price on the housing market has increased to £333,564 according to the online property listing site, Rightmove. This is a 1.8% increase, or £5,767, over the average asking price recorded last month. Many factors have come together to create the current boom to the market. One major factor is the strong desire to find the dream home that was imagined during the pandemic and lockdowns. Demand has increased, but supply has remained weak, and that has pushed asking prices upward.

Home buyers have been pushing to get their dream dwelling despite that pandemic lockdowns appear to be a part of our past and not our future. It was during the global pandemic that many found their homes lacked the ability to fill their needs with the new lifestyle they were forced to adapt to or choose due to the circumstances. The desire for better accommodations to work from home, study, do fitness, and fulfill hobbies helped push strong demand onto the housing market.

There are many discussions, opinions, and statistics being shared concerning the upcoming deadline to the Stamp Duty Holiday. The tax discount was offered as a remedy to keep the UK housing market moving during the pandemic and lockdowns. It turned out to offer a boost to the market, but how much of a boost is the center of the discussion. It matters because the weeks are counting down until the first discount reduction deadline approaches in the end of June and the final deadline in September. The highly discussed issue is to determine if the housing market will stay active or to the other extreme come to a screeching halt.

The economy is on a path of strong recovery, so says the Bank of England. In fact, the recovery is expected to be stronger than it has been in almost 70 years. The UK economic growth outlook strongly puts aside any anticipation of further cuts to the standard base interest rate by the Bank. Therefore, rather than cheaper borrowing ahead with further interest rate cuts, borrowers should be ready to face more costly borrowing, especially in large borrowing situations such as seen with mortgages and remortgages.