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News releases

Paragon Managing Director of Mortgages comments on today’s RICS Residential Market Survey

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Respondents to RICS’ latest Residential Market Survey noted a slight decrease in new instructions to sell, with the level of properties available to purchase still significantly lower than that needed to meet demand.

The current increasing interest rate environment has inevitably made mortgage borrowing more expensive to finance properties that have sharply risen in value over the past year.  When combined with inflationary pressure on household finances, the ability of first-time buyers to save for deposits may be negatively impacted. This could mean that people need to remain in privately rented housing for longer, prolonging the high tenant demand that we have seen over the past 18 months.

With supply failing to meet demand and landlords also facing increased costs to manage their lettings business, rents are likely to continue to rise. This adds to the squeeze on personal finances, further hindering the opportunity for significant numbers of the population to live in a home of their choice.

To interrupt this cycle and meet this demand, it is important that investment in the private rented sector is facilitated. The mortgage industry has a key part to play, but this must be alongside Government policy that doesn’t deter private investment in the UK’s second largest housing tenure.

Richard Rowntree
Managing Director for Mortgages