‘Interest rates are a huge worry’: Eastbourne estate agent expresses housing market concerns

Stamp duty was abolished for houses under £250,000 as part of the mini-budget on Friday, September 23,

But there are concerns as people are expected to have less money to spend due to the cost of living crisis.

Paul Hunt from Hunt Frame said the company lost two deals in the week following the mini-budget announcement due to the buyers’ mortgage rates increasing.

He is also expecting mortgage offers to expire and for people to face higher rates when they reapply.

He said: “When interest rates go up house prices will go down.

“The housing market will definitely slow [down].

“During Covid we sold all of our stock. Supply and demand might keep prices high for a short while.

“When people’s fixed rates expire they may be forced to sell.”

Back in May a cost of living ‘emergency’ was declared in Eastbourne.

Mr Hunt added: “Interest rates are a huge worry, and the cost of living.

“People will start struggling with their mortgages.”

However, Mr Hunt said Eastbourne has done ‘very well’ over the last couple of years with some house prices in the town increasing by around 20 per cent.

He urged buyers and sellers to ‘carry on with their plan’.

He said: “If people don’t carry on with their plans, that is when we get into real trouble.”

Mr Hunt explained that if people are selling and buying in the same market it evens itself out.

Zoopla said stamp duty changes will support lower value markets and help first-time buyers in southern England.

A Zoopla spokesperson added: “To offset the hit to buying power, we believe that buyers have three options. They can put down a larger deposit, allocate more of their income to mortgage costs, or adjust their budgets and consider buying a smaller property or purchasing in a cheaper area.

“There are early signs that price sensitivity is emerging as six per cent of homes listed for sale have seen the asking price adjusted downwards by five per cent or more, the highest level since before the pandemic.”

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