Optimism regarding the UK housing market is once again headlining many conversations across the country. One of the biggest points of interest remains Brexit and how it will affect all major sectors of the market and all the subsectors. Other issues impacting feelings about the market include house price growth, house sales, and inflation. In the latest Halifax survey regarding the market, which includes only feelings about house price growth, residents feel similar to that of the 2013 survey. Since that year, the survey has not produced results higher than 5 years ago.

Today everyone is focused on enjoying the Bank Holiday and the wonderful weather it has brought to us all, but on Thursday all eyes will be on the Bank of England’s Monetary Policy Committee (MPC). The MPC will be holding their May meeting and will be voting on whether to leave the standard base interest rate as is or increase the rate. While there was strong indication that the interest rate would be hiked this month, the weaker than expected economic data reported might push off the rate hike until August.

The last few months within the UK housing market have produced some significant swings in the key sectors relating to lending. In the middle of last year, mortgage lending was in heavy demand and house sales were strong. Remortgage activity remained robust through the entire year and then spiked heavy just prior to the November increase in interest rates taking them from 0.25% to 0.5%. Now, just days prior to the next forecasted hike, weak Q1 data has created a scenario which does not support an increase in rates, according to many housing specialists.

As a home owner, the cost of paying for things such as the mortgage payment each month, and home owner’s insurance and stamp duty all combine to form a hefty bill. Add to that, possibly an unpaid school loan, the weekly grocery bill, and utility cost for the home. What happens typically is the outgoings outpace the household income. This presents a problem, especially whilst the housing market is running at such a high rate of uncertainty. In the eyes of many housing specialists, it could be the right time to look into remortgage.

Strong evidence is mounting for the Bank of England to back off the idea of an interest rate hike next week when the Monetary Policy Committee comes together for its monthly meeting. Although original mortgage lending has slowed slightly, it is another part of the economy which has the central bank hesitant about raising rates. The service sector as well as other sectors have slowed in the last few months, especially in the month of April.

After months of talk of a possible interest rate hike taking place this month, it appears unlikely after recent published data paints a picture of an economy not ready for the move. Data from the service sector during the month of April along with other data speaks to the possibility of an interest rate hike being placed on the backburner for now. Overall, the economy grew at a rate of 0.1% in the first quarter which is the slowest since 2012.