Bit a crazy statement I know and sorry if you are someone not on the property ladder thinking this guy is an idiot; but bare with me… J

I have worked in the property market for over 18 years now and the actual price of a property doesn’t actually have the main impact for people when searching for their next home.


Because the first financial impacting factor for a purchaser is the monthly cost and not actually the property price.  The monthly affordability then impacts the price of the property you can then purchase. 

So if prices increase by 3% (as an example) on a house at 300k then the price would be 309k. That doesn’t mean a new buyer needs to find an extra 9,000 from their savings, it means they would need an extra £900 or £1,350 based on a 90% or 85% loan to value mortgage.

The true impacting factor for affordability is the rate of interest charged through the mortgage.  Example being 2.5% interest rate vs a 2% interest rate being more impacting on the monthly payments that the price change.


Interest rates are dropping, and have done since the start of 2021.  Banks are searching for what they call ‘market share’, they are keen for business and they are reducing rates to entice new potential buyers.  This knock on effect has meant an huge uplift of people searching for a new or first home.

Price vs Affordability?

There is always only one winner…

If you have a plan to move house we would love to help advise you on the best way to make your property dreams happen.

Click here to get in contact with us today.

Ian Macbeth

Managing Partner