Estate agent speak of optimism at strength of Peterborough's housing market

An estate agent has spoken of his confidence in the strength of the Peterborough housing market despite fears rising interest rates will force some homeowners to default on mortgage payments.

The upbeat assessment by Daniel Wilson, director of independent estate agents Wilson & Co Homes, in Cygnet Park, Hampton, follows a forecast from the Financial Conduct Authority that nationally thousands of homeowners will be unable to make their monthly mortgage payments over the next two years.

But Mr Wilson, who has run his business for a decade, said: “We are already seeing signs that rates are starting to fall slightly.

“A lot of people I see are on fixed term mortgages and so far no one has spoken to me about struggling with their mortgage or needing to sell because they can’t afford to be where they are.

He added: “The problems occurred around the change of Government with Liz Truss. It caused so much uncertainty. Banks don’t like uncertainty, didn’t really know what to do, so put up interest rates.

“But the rates are dropping slightly, although still around the five or four per cent.

He added: “I’m not expecting to see the city deluged by people defaulting on their mortgages.”

He said that overall, Peterborough’s housing market is active and buoyant.

He said: “It has been a positive start and is quite busy - plenty of people want their houses valued and plenty want to move and are coming to the market.

“I am fairly optimistic for this year.

“Covid-19 was an anomaly. Anyone could sell a house through the Covid19 pandemic as rates were really low at 1.7 per cent.

“It was the busiest period I have ever experienced.

“Last year was a little bit quiet because the stamp duty holiday came to an ended

“The market had just started to recover and then there were the changes in government.”

But Mr Wilson cautioned about too much focus on short term changes in the housing market.

A report from the Halifax revealed the cost of an average house in Peterborough had risen by 14.9 per cent last year to £289,994 while Rightmove puts the average cost of a Peterborough house over the last year at £241,818.

Mr Wilson said: “If you look over a lengthy period, such as five years, then house prices have gone up quite significantly."

Rightmove’s figures show in Peterborough, the most popular homes are semi-detached with an average price of £229,183, the price of an average detached is £359,503 while the average terrace is £190,793.”

Councillors on Peterborough City Council are considering a review of the Local Plan, which determines where homes can be built and the number.

Mr Wilson said: “There is already a good mix of housing in Peterborough and there is plenty of building going on - but I think there is never really going to be enough housing.

“The rental market is crazy. Rents are high and continually increasing but there is always a lot of demand. We suffer with a lack of rental stock.”

Mr Wilson added: “I am optimistic about the future.

“Peterborough is a big place and growing. There is plenty of business and industry coming to the city.”