HOME EDI T ION
continue to dominate. “Hopefully, there might be greater breathing room as more houses become available to buy,” he adds. “Many people who were considering selling a year or so ago, but put their move on hold mainly due to Covid-19, now appear to be getting on with their lives and making the jump to selling.” MONEY TALK If this fresh supply of homes does arrive on the market, it could be a lifeline for first-time buyers who are struggling to compete in the current climate. While the stamp duty holiday was designed for people in this position, its benefits have been largely eradicated by soaring house prices. The increasingly tough conditions for first-timers mean that more and more are considering alternatives, such as shared ownership, which is on the up in our city. “Cambridge is one of the most expensive places in the country to live. This makes it difficult for first-time buyers to
CAMBRIDGE HAS, HISTORICALLY, BEEN RELATIVELY RESILIENT
change in February – although it warns this may shift if we see more increases during the year, as the cost of borrowing rises. “We expect fixed-rate products will become more attractive as homeowners look for consistency of monthly mortgage payments – especially at a time when other bills may be increasing,” adds head of lending Tracy Simpson. WHAT NEXT? Beyond spring, what happens next could be down to inflation, and government measures to counteract it. “Unless it is controlled, interest rates will continue to rise,” warns Richard Freshwater. “However, they are currently so low that small rate rises are making little difference to the market, and there are still some amazing five-year, fixed-rate mortgage deals out there for the taking. We hope to see more houses become available – this will be the only way for the market to level.” Andrew Tucker, meanwhile, suggests that we can’t ignore the potential impact of a financial ‘payback’ from Covid-19. “This may well have a short, temporary impact on local markets, but it is difficult to see this being significant, as the continued issue of supply and increased demand will also be a key driver. “That said,” he concludes, “Cambridge has, historically, been relatively resilient to global economic downturns, and there is nothing to say it won’t fare the same in the years ahead.”
raise enough for a deposit – but shared ownership offers the opportunity to purchase part of a property and get on the housing ladder with a smaller deposit,” comments Matthew Barber, mortgage manager at The Cambridge Building Society. “They will usually also pay rent to the housing association that owns the rest of the share,” he continues. “Most schemes allow the buyer to increase their share in the property in the future. This way of getting on the ladder has become a popular alternative to traditional mortgages.” Elsewhere in the world of mortgages, The Cambridge reports that there’s been no dampening of demand since the base rate
ASK THE EXPERTS The process of buying or selling a home can be overwhelming at the best of times, let alone a moment of heightened activity – don’t be afraid to consult with agents and advisers
82 MARCH 2022 CAMBSEDITION.CO.UK
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