It’s not all doom and gloom

Clare Phillips
6 October 2022
Buying | Estate Agency | Selling

Leicester & Leicestershire

There is not a great deal of positivity flying around the economy at the moment, with a mini budget that was frankly jaw-dropping. However, we interviewed Clare Phillips, Partner at Phillips George to help us get things in perspective, and to give us an insight into what this all means for the local property market in Leicestershire.

Interviewer: Things are not looking good with interest rates going up and the pound diving in the markets. What do you make of it?

Clare: I don’t think this is another 2008, which was of course a major global financial crisis. I feel we should look on this as a bit of a blip, rather than a long-term slump.

Interviewer: But the economy has seen a very worrying trend to high interest rates and a run on the pound?

Clare: The issues that are dragging the economy down and therefore the housing market are largely self-inflicted. I just get the impression that we already know the problem, and the poor decisions being made for the economy can quickly be reversed. The former chancellor Rishi Sunak predicted this would happen if the new government tried to pursue what he sees as discredited economic policies, and I think these mini budget changes will quickly be scrapped and common sense restored.

Interviewer: What about the Stamp Duty relief? Will that not have a positive influence on the housing market?

Clare: This tax relief does not make up for the damage being done with high interest rates. Without a doubt it must be the priority to get inflation under control and make sure interest rates keep housing mortgage rates affordable and the cost of living manageable.

Keeping your eye on the prize

Interviewer: So, is there light at the end of the tunnel?

Clare: Absolutely! I take you back to 2008. The housing market did not recover fully until 2015. This is not of the same magnitude, and I see the economy bounce back as soon as sanity is restored to the chancellery.

We have had a few monumental interruptions to the housing market over the last few years with leaving the EU and of course the pandemic. These events have demonstrated how resilient the housing market is.

Remember that since 2015 house values have grown by around 70%, so buying your home has always been a sound investment in the medium to long term, and we really should see this as a temporary setback.

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Clare Phillips
Clare Phillips, Partner
Clare has been in the industry since 1998. Her career started as an administrator and she has worked through each role in estate agency from negotiator, sales progressor, valuer, manager and culminating in opening Phillips George as a co-founding partner. Through Clare’s career she has obtained professional qualifications with both NAEA (national association of estate agents) and ARLA (association of residential letting agents) to ensure that she delivers a first class service to all of her clients. Clare’s favourite part of estate agency and lettings is helping customers achieve their goals and making the process as smooth as possible for them.