One year swap rate 5.98% up 0.39% in last month

Two year swap rate 5.88% up 0.46% in last month

Three year swap rate 5.83% up 0.45% in last month

Five year swap rate 5.67% up 0.37% in last month

 

3 month LIBOR rate 5.88% up 0.02% 

 

Swap rates have been rising dramtically and LIBOR has remained stubbornly high despite the Bank of Englands liquidity package announced recently.

 

The minutes from the Bank of England MPC for Mays meeting state that members voted 8-1 to keep the Bank of England rate on hold, it should be interesting to see if that vote is the same for this month.

 

Some market pundits are suggesting that we shall see perhaps one or two reductions before the end of the year, however, rates could rise again next year to help combat inflation.

 

 

Halifax reported a 2.4% drop in house prices during May, meaning that the annual change is now 3.8%.

 

Nationwide reported a 2.5% drop in May, with their annual change now 4.4% down on last year.

 

Rightmove, which monitors the average property asking price reported a rise of 1.2% in May, with the annual change being 2.2%. The South-East reported a rise of 4.2% in May and London 0.2%.

With recent news, publications and talks about the property industry, the obvious thought would be if you have a property whether to sale or let?
 
Currently, landlords are deciding not to sell their property, but to turn to the idea of renting out their property. This allows them to re-assess the market and see where the market is leading over the next year.
 
With the increase of competitiveness in the current market, landlords are thinking twice about trying to achieve the highest possible rents, but instead take anything between a 5-10% reduction on the asking rent price in order to rent their property out quicker and to avoid any gap periods between the tenancies.
 
Currently, potential tenants are aware of this situation and with the rising stock levels the tenants have more opportunities of putting in lower offers, which would have not been possible over a year ago.  Fortunately, landlords are accepting these offers to fill in any void periods and to re-assess the market over the next year.
 
At VOGUE Property Solutions we have been realistic about rentals in this current market and have given sound advice to certain landlords about what route to take. Rentals have been very busy and we are looking for more properties to rent out.
 
If you are struggling to sale your property, then why not rent? We will be happy to give you a FREE rental and sales valuation. 

 

Please contact John on 08707 700 101 or email: john@vogueps.co.uk