More than 500 mortgage deals have been made unavailable by building societies and banks over the last month, with home buyers being left with no other choice than to take on mortgages with high-interest rates.

According to Moneyfacts, an institution that provides financial information services, when compared with data from the beginning of February, there were a whopping 518 fewer deals available at the beginning of March.

This indicates the biggest monthly drop in mortgage deal availability since May 2020, when, as a result of the COVID-19 pandemic and the economic uncertainty it brought, a massive 626 mortgage products were dropped.

The current number of mortgage products on the market for buyers to choose from is 4,838, which indicates a drop of 384 products from March 2020, when the pandemic first hit.

Lenders have removed these products as a direct response to the increased base rate set by the Bank of England. Some lenders have removed whole products from the market, while others have stopped lending for certain deposit sizes.

Further to this, the shelf life of some mortgage products has been reduced by 14 days over the last month, meaning potential home buyers have, on average, just 28 days to secure their preferred mortgage deal.

For five months in a row, both two-year and five-year fixed-rate mortgage interest rates have risen by 0.21% and 0.17%, respectively. The two-year fixed average rate, at 2.65%, is the highest seen since November 2015.

This is not good news for homeowners coming to the end of their two-year fixed-rate mortgage deal, who will find it extremely challenging to find another fixed deal at a decent interest rate, and they will find it virtually impossible to get a better one than they have previously enjoyed. This will become particularly relevant if the homeowner has little to no equity in their property, thereby making it difficult to access a higher LTV (loan-to-value) band and more competitive interest rates.

Five-year fixed-interest mortgage rates are showing their highest figures, at 2.88%, since April 2019. Homeowners approaching the end of their fixed rate deal may still have the opportunity to find a decent deal on a five-year fixed rate, as the average rate has stayed at 2.93%, which is 0.05% lower than what it was in March 2017.

The only mortgage products that showed signs of improved availability were 5% deposit loans, with seven new deals being added to the market. March 2022 was the first time that a 5% mortgage with a two-year fixed interest rate has shown an increase of 0.06% up to 3.11% since April 2021.

Even though the base rate set by the Bank of England has no direct effect on fixed interest rates, lenders typically increase their rates to cover any increased borrowing costs that will most definitely arise.

Last summer saw mortgage interest rates hit a historical low, with interest rate deals available at as little as 0.83%. This was largely due to lenders wanting to capitalise on a buoyant market and the fact that lending costs were at an all-time low, with the Bank of England lowering the base rate to 0.1%. This was subsequently increased to 02% in December, followed by another increase in February 2022, to 0.5%, with the expectation that further rises will be seen in the months to come.

Eleanor Williams, a finance expert at Moneyfacts, said: ‘Borrowers contemplating securing a new mortgage deal may be disheartened to see that rates are continuing to rise this month.

‘While factors beyond lenders’ control are uncertain, as the cost of living crisis continues and economic conditions are volatile, to mitigate the risk of default, it could be that providers may tighten their lending belts even further moving forward.

‘Borrowers looking to get onto the property ladder or to remortgage may therefore be wise to seek advice to ensure they are abreast of the changing market and to move forward with securing the most suitable deal for them.’

Finding a good fixed-interest deal

There are still many decent fixed-term deals out there that are significantly lower than the average figures provided by Moneyfacts, particularly for clients with large deposits and/or equity in their property. Experts warn buyers to consider their options carefully and shop around to find the best deal before committing to any fixed-rate mortgage product.

“Rates have gone up, which will cost homebuyers a little bit more, but I want to stress that this shouldn’t put people off moving to the house of their dreams or taking that first step to get on the property ladder.

‘We’ve seen a sharp and slightly panicky reaction to the Bank of England base rate rising to 0.5 per cent in February, but 30 years ago, in 1992, it was more than 20 times higher at 10.38 per cent. So, we must view this rise with some much-needed context and with a cool head.’

Even though mortgage interest rates are still relatively low when compared with historical figures, the average house price is increasing but not in line with the average income.

Economic uncertainty has become the norm as the UK continues to deal with the lingering after-effects of COVID-19. But while some sectors are struggling to get back to pre-pandemic performance levels, others are breaking records left, right, and centre.

Once again, average house prices hit a new all-time high in February, exceeding £260,000 for the first time. Data published by Nationwide suggests an astonishing 12.6% average annual growth rate for the month, taking house prices in most key UK regions to new record highs.

This is the largest year-on-year increase since Nationwide’s monthly index was launched in 1991, suggesting staggering performance for the sector despite the highest level of inflation in over three decades.

On average, the price of a UK home is now approximately £44,000 higher than it was before the pandemic hit, an increase of around 20%.

Supply continues to lag behind demand

According to Nationwide, issues with available inventory are the main cause of the past year’s record of property price increases. Demand continues to exceed supply in most areas of the UK, with affordable inventory having all but dried up entirely.

Meanwhile, house price growth continues to outpace wage rises, making it increasingly difficult for the average UK worker to buy their own home.

“The continued buoyancy of the housing market is of little surprise, given the mounting pressure on household budgets from rising inflation, which reached a 30-year high of 5.5% in January, and since borrowing costs have started to move up from all-time lows in recent months,” commented Nationwide.

“The squeeze on household incomes is set to intensify, with inflation expected to rise above 7% in the coming months,”

“Indeed, there is scope for inflation to rise even further as events in Ukraine threaten to send global energy prices even higher.”

“Assuming that labour market conditions remain strong, the Bank of England is also likely to raise interest rates, which will exert a further drag on the market if this feeds through to mortgage rates for customers.”

A positive picture for current homeowners

While the housing market is becoming increasingly inaccessible for first-time buyers, all-time record house prices are benefiting millions of existing homeowners.

“This performance really is quite alarming when you consider the wider economic turmoil that we’ve faced for some years now, and it proves that there really is no safer investment than bricks and mortar.”

“Even across London, where market conditions have remained far more muted, values have continued to climb, and the capital’s property market is now poised to enjoy an accelerated rate of growth over the coming year.”

Further monthly property price increases have been forecast by all major banks and lenders, though at a significantly slower rate than those recorded over the past year.

As inflation increases and the cost of living rises, many homeowners are looking for ways to reduce spending. One way this can be done is by cutting the cost of their mortgage.

UK households are bracing themselves for the predicted increases in their monthly outgoings due to the increase in inflation and the escalating energy crisis. Alongside this is the rise in interest rates, which will have a serious effect on monthly mortgage repayment amounts.

We calculated that on average, since December 2021, on a standard variable mortgage, people would be paying an additional £656 per year in repayments. So, with tough times ahead, it is wise to consider some options for saving money on your mortgage.

Remortgage your home

This option will suit anyone approaching the end of their existing mortgage deal and should be the first option to consider when trying to reduce monthly repayments. In the current climate, it would be frugal to take advantage of the deals still on offer before the predicted increases in interest rates.

According to research, homeowners can save on average around £3900 per year by switching mortgages and locking in a good deal.

If you are not at the end of your current deal, you may have to pay your mortgage lender an ERC (early repayment charge), but it is useful to know that you can, in fact, switch mortgages six months before the end of your deal without being penalised.

Long-term fixed-rate mortgages

Fixing your monthly repayment amounts can give you a little peace of mind knowing exactly how much you will be paying, irrespective of fluctuating interest rates.

Locking into a good deal on a five-year fixed-interest mortgage could be the perfect solution to bringing a bit of financial stability to homeowners. There are still many great 5-year fixed-interest offers available on the market, particularly for buyers who require a higher loan-to-value (LTV) ratio.

The interest rate on a five-year fixed mortgage is higher than that of a two-year fixed mortgage; however, with the uncertainty of the economy, paying a little more on monthly repayments could pay dividends should the cost of living continue to increase, as expected, in the coming years.

Green mortgages

The concept of a green mortgage is to reward the buyer with an incentive to buy a home that is environmentally friendly. Lenders do this by offering mortgages with lower interest rates, therefore lower monthly repayments for the homeowner.

In order to qualify for a green mortgage, the property must have an EPC (Energy Performance Certificate). Ratings of A or B will give access to the best green mortgage deals, which can offer the biggest discounts in interest rates, cash-back incentives, and additional low-cost borrowing options.

Part and part mortgages

As the name suggests, this type of mortgage is on a partial interest-only and partial repayment basis. Mortgage brokers will tailor a part-and-part mortgage to suit your individual needs and will ensure a clause is included to enable you to make additional overpayments should you wish to.

It is important to consult with an experienced broker when considering a part-time mortgage, as this mortgage product is not suitable for all homeowners.

Overpayments on your mortgage

Monthly overpayments or a single lump-sum payment is a wise move while interest rates are still low. Investing your money in your home during these turbulent economic times could prove to be the best place to put your cash, with many other investment options being very risky.

Typically, most mortgages permit the borrower to overpay by up to 10% per year, and by taking advantage of this, you can make huge savings in the long term. Just an additional £50 per month can save you around £5000 and reduce your mortgage period by 2 years.

Offset mortgage

This type of mortgage links to your savings account and any savings you have in that account will be considered by the lender as mortgage overpayments. You will still have access to the funds in the savings account and be able to withdraw cash, but that will affect the interest rates on the mortgage.

Offset mortgages require that the mortgage and the savings account be with the same provider.

Size of your deposit

It goes without saying that the larger the deposit you have to put down on a property, the better access you have to great deals with low-interest rates. Your monthly payments will be lower, and long term, you will end up paying less for your home.

With the upcoming changes to EPC (Energy Performance Certificate) rules, interest in green mortgages is on the increase, with many landlords qualifying for great deals on BTL mortgages.

Green mortgages offer incentives to landlords who are willing to upgrade their properties to a high energy efficiency level.

Although there are currently only a few lenders offering green mortgages, there is an expectation that many more lenders will follow suit in the near future. Green mortgages are available, not only to buy-to-let landlords but also to regular home buyers and those looking to remortgage. Buyers are offered a discount on interest rates for homes that are deemed to be energy efficient.

The first green mortgages were offered in June 2021 by specialist BTL lenders, Land bay. The response from buyers and landlords has been extremely positive, with the prediction that many more lenders intend to offer the same type of mortgage product in the near future.

What is an EPC?

An Energy Performance Certificate is a certificate that measures just how energy efficient a property is, which is then awarded a rating ranging from A to G, with A being the most efficient and G the least efficient.

A property that is highly efficient and emits minimal greenhouse gases will be assigned a rating of A, whereas a G rating indicates poor performance in both efficiency and emissions.

An EPC rating inspection is carried out by a qualified energy assessor, who will estimate the average energy use. The assessor will take into account things like hot water, electricity, and gas costs, as well as levels of carbon dioxide emissions when rating a property.

Energy Performance Certificates also suggest improvements that can be made to improve efficiency, with an estimate of the costs of the changes needed and the potential savings the improvements will bring.

EPC’s for rental properties

Rental properties have been required to have an EPC since 2007, resulting in the government now having energy data for around 50% of residential homes in the UK.

Approximately 58% of houses and flats have an energy-efficient rating between D and G. This is largely due to the large number of old houses in the UK and is not surprising when considering that around 20% of all housing was built before 1919.

In direct contrast, 95% of new homes in the UK have ratings between A and C, with the majority having a rating of B.

Landlords have been required, since 2018, to have a minimum EPC rating of E, but new government rules mean that this will change by 2025 when landlords will be required to improve to a C rating for all new tenancies. This will be followed by all existing tenancies reaching the same C rating by 2028.

The changes are due to the ongoing global warming crisis and are part of the government’s strategy to reach the environmental target of zero emissions by 2050. Housing is estimated to contribute 16% of total carbon dioxide emissions, making it imperative that all homes are improved when it comes to energy efficiency, irrespective of whether they are owned or rented.

For landlords to qualify for a discounted green mortgage, the property must have a rating of at least C. Green mortgages are also available for new-build homes.

How can I improve energy efficiency in my property?

There are a few simple things you can do to improve energy efficiency and lower carbon emissions in your home. You can make small changes, like changing lightbulbs, or bigger improvements, such as new double glazing, floor and wall insulation, and solar panels, all of which are highly effective.

The gas boiler is the biggest problem when it comes to carbon dioxide emissions, which can be improved by upgrading to a combination boiler or heat pumps, which are considerably more environmentally friendly than the old-style boilers.

For the last ten years or so, buyers have enjoyed the luxury of low-cost mortgages, but this long-cherished privilege looks set to end.

2021 showed record-low fixed-rate mortgage deals of less than 1%, but these rates are officially over, with interest rates nearly doubling over the last six months.

In October 2021, home buyers could take out fixed-rate mortgages at a low rate of 0.79%; however, the cheapest you can get right now on a 2-year fixed-term mortgage has risen to 1.25%. In real terms, this would mean that on a loan of £150,000, you could expect to pay an additional £375 annually. The lowest rate on a five-year fixed-term mortgage has risen from a low of 0.91% to 1.59%, which equates to approximately £565 in additional costs per year.

Buyers have enjoyed low-interest mortgage offers since the end of the global recession, when the Bank of England significantly decreased the base rate. When the COVID-19 pandemic struck, the base rate was at a record low of 0.1% but has since been increased to 0.5% with the expectation that it will rise further in the immediate future as the cost of living soars.

As a direct result of this base rate hike, lenders have followed suit with many increasing fixed rates by up to 0.5%, including Virgin Money, Halifax, and Santander.

The expectation is that rates will continue to rise and could go as high as 2% by 2023. The UK hasn’t seen rates this high since December 2008. Those currently on low-cost fixed-rate mortgages will find it difficult to find an equally good deal when their current term comes to an end.

Imran Hussain, the mortgage broker at Harmony Financial Services, commented: ‘The sub-1 per cent interest rate is almost certainly a thing of the past.’

If the rate is increased to 2% by the Bank of England in 2023, this would mean that on a property worth £150,000 on a two-year fixed rate, monthly payments would be £711, and on a 5-year fixed rate, they would be £723.

A financial adviser at Carl Summers Financial Services, Scott Taylor-Barr, added: ‘Those who were lucky enough to secure a fixed rate at the historic low rates we saw last year have to be aware of what lenders call ‘payment shock’, which is when rates rise while you are insulated on your fixed rate and exit that deal into a much higher interest rate market.

‘All you can do is ensure you budget with a reserve to allow for an increase in payments when your deal ends.’

Lock in now: If you can

Approximately 75% of buyers are locked into fixed-rate deals that last between one and thirty years. Other homeowners are on variable-rate mortgages and are therefore subject to the rise and fall of interest rates. Should the Bank of England push the rate further to 2%, this would mean a property worth £150,000, with an average standard variable rate of 4.5, would have to pay £1,592 in additional costs per year.

Mortgage brokers are urging homeowners to do all they can to switch to a fixed-rate mortgage before we are hit with further interest rate increases if they can.

David Hollingworth, of L&C, says: ‘Taking advantage of the current crop of deals will help to weather the storm.’

He went on to say that many lenders will make mortgage rate offers that they will honour for up to six months, giving buyers and homeowners the opportunity to get a good deal before it’s too late.

Look into long-term fixed-term deals

Longer-term fixed-rate mortgages are becoming more and more popular, with the cost of a five-year fixed-rate mortgage not being much higher than that of a two-year fixed-rate deal. With this in mind, there is a trend among buyers to consider taking out even longer, ten-year deals. The best deal available on a 10-year deal is currently with Lloyds at a rate of 1.66%.

Dominik Lipnicki, director at Your Mortgage Decisions Ltd., says: ‘Many borrowers are not just concentrating on the lowest possible monthly payment now.’

Graham Cox, director of Self Employed Mortgage Hub, adds: ‘We’re finding borrowers who aren’t looking to move, locking in on a longer period of five or seven years.’

He did warn, however, that long-term rates are not always the best choice for every buyer, particularly if they have to move: ‘Although they will be portable, there is no guarantee you will meet the lender’s criteria then.’

Can a cheaper mortgage end up costing more?

A great number of mortgages have an early repayment fee, but lenders usually permit borrowers to repay up to 10% extra, penalty-free, every year.

By paying an extra £100 per month on a mortgage of £150,000 with a 1% interest rate, you could clear your loan almost 4 years early and save around £3,374. Although this may seem like a good move, it is vital that consideration of other debts be made first.

Mr Hollingworth stated, ‘Although the cost of living rise will cause many to rethink their budgeting, there could still be room for some overpayments to be made now while enjoying a low rate.

‘That will help reduce the interest bill and the mortgage balance to save money overall and to put them in a better position to cope with a potentially higher-rate environment when the current deal comes to an end.’

Should I pay to leave early?

It may be cost-effective to just pay the ERC (early repayment charge) if a low-fixed-interest rate mortgage can be found, but borrowers should calculate whether it is in fact worth it before making any commitment.

Managing director at The Mortgage Girl, Samantha Bickford, says: ‘A client on a great rate of 1.79 per cent with a year left came to me this week willing to repay the £700 exit fee to secure a new fixed rate deal for as long as possible.

‘We secured a deal at 1.89 per cent for the next five years to take him to the end of his mortgage term.’

But experts say rates are relatively low and are not likely to surge.

Rob Peters, principal at Simple Fast Mortgage, says, ‘We have had an unprecedented period of all-time low-interest rates. Those with highly leveraged debt burdens will be the first to feel the pain.’

 

The Bank of England has said it may relax the rules surrounding the affordability of mortgages so that buyers will be able to apply for higher-value homes than they would normally be able to. This will allow people to financially stretch themselves in order to purchase property.

A consultation by the Bank of England has been arranged to discuss the changes that will be made to the affordability tests that lenders are using to assess potential buyers. This will inevitably lead to more borrowers being able to access larger mortgages. This consultation is a direct result of concerns that this will further drive up house inflation.

It is a fact that stringent affordability tests that don’t represent current borrowing conditions have prevented many first-time buyers from taking out a mortgage, which could be considerably cheaper than rental rates.

What changes will be made?

The rules that will be affected will be the affordability test and the loan-to-income limit, both recommendations established in 2014 by the Financial Authority Committee. These rules were created with the intention of preventing buyers from getting themselves into financial difficulty by taking out mortgages that they could not afford.

The rules provide limits on both loan-to-income ratios and affordability, which provides lenders with a “stress” interest rate so that they can assess buyers’ ability to keep up with mortgage repayments.

A loan-to-income ratio is the rate at which banks and lenders will calculate the size of the mortgage they will offer by using the buyers’ annual salary. This rate has been set at 4.5 times the annual salary since 2014.

The affordability test involves the buyer proving that they can afford to keep up with repayments should the interest rates increase by 3% above the standard variable rate of the lender.

Standard variable rate mortgages (SVRs) typically follow on from a fixed rate mortgage when the term has come to an end and are generally more expensive. Many buyers will switch to a new fixed mortgage deal to avoid an SVR mortgage.

Although these rules stopped many from accessing mortgages, only 6% (approximately 30,000 mortgages) of buyers were forced to accept lower-value loans.

The expectation is that the loan-to-income rule will remain as it currently is, but the affordability stress test will be relaxed. This will mean that the repayment amount will be based on predicted market interest rates over the coming 5 years, or an increase of 1% on the current rate, whichever is greater.

Mortgage technical manager at John Charcoal, Nicholas Mendes, commented: “The scrapping of current rules would be welcome by homeowners and brokers alike, as this would be a boost for the market given the ever-increasing property prices”.

‘This will give homeowners, at least in the short term, the ability to borrow more.’

Despite these rule changes, the ever-increasing cost of living could completely nullify the effects of the change, as household bills are on the rise, and lenders will need to factor this in when performing the affordability test.

‘We are expecting to see inflation continue to increase into 2023,’ added Mendes, ‘with multiple base rate rises, lenders could choose not to make any changes because predicting where rates could be in 5 years’ time seems almost impossible.

‘As the costs continue to escalate, we could see lenders exercise caution and start to consider other factors to ensure the mortgage remains affordable.’

Rising rates and escalating inflation have resulted in many lenders, including TSB, Santander, and Barclays, altering their affordability stress tests to reflect the current economic arena.

Mortgage consultant at Private Finance, Chris Sykes, said: ‘We can expect more lenders to take these costs into consideration moving forward, especially after the removal of the energy price cap in April.

‘This means we can expect tighter affordability for some and lower loan amounts available than was previously the case.

‘This could reduce people’s maximum borrowing, which in turn could be a problem for those already in a tight situation.

‘We are already seeing the impact these changes are having on Barclays, with a recent client able to borrow a very significant £100,000 less following the implementation of the changes to their affordability calculator.’

This could present problems, not only for first-time buyers but also for people looking to remortgage their property. It will prevent many owners from being able to remortgage their homes, forcing them to remain on more expensive monthly repayments.

In addition, the increased price of the average home will further contribute to the difficulties first-time buyers are having trying to get a foot on the property ladder.

Property owners who are finding it increasingly difficult to keep up with mortgage payments due to the high inflation rates are being actively encouraged to remortgage in order to bring down monthly mortgage payments.

According to a report released by the Joseph Rowntree Foundation, the rising price of energy is set to hit the poorest hardest, with households looking to spend around 18% of their income on gas and electricity after April this year.

To add even more stress to families, the energy price cap set is about to rise in conjunction with an increase in national insurance contributions. With inflation at a thirty-year high, services and goods are going to become increasingly expensive as we move through 2022.

According to L&C Mortgages, property owners will find that their mortgage repayments will be around seven times that of their energy bills, and as such, they are encouraging homeowners to look at changing their mortgage in order to reduce monthly outgoings.

David Hollingworth from L&C Mortgages commented: “It’s easy to focus on the costs that are climbing rapidly, like energy bills, and many homeowners will feel the pinch due to the price cap rise in April when council tax and national insurance changes will also begin to bite.

“Many of these elements are out of our control, but the mortgage is often a substantially higher outgoing and could offer a silver lining for homeowners.

“Fixed-rate mortgages offer a chance to save thousands for those that have drifted onto a lender’s standard variable rate.

“Cutting the biggest household bill could offer savings that mitigate the inevitable increase in other costs but also give the chance to shelter payments from any further interest rate rises.”

An analysis by L&C Mortgages shows families have an average monthly mortgage cost of around £900 and average energy costs of £118. Energy costs are expected to rise by approximately 50% over the coming months, and it is suggested that reducing monthly mortgage payments could significantly help in keeping monthly household outgoings down.

There has already been a hike in mortgage interest rates in response to rising inflation. Some lenders have passed the base rate increase on to SVR (standard variable rate) clients. This means that should a homeowner decide to remortgage from an SVR mortgage with a rate of 3.91% to a fixed mortgage rate of 1.36%, they could potentially save themselves around £2,200 per annum. A decrease of as little as 0.65% on mortgage interest could completely offset the effect of rising gas and electricity bills.

With inflation, energy costs, and mortgage rate increases guaranteed to put most families in the UK under immense financial pressure, changing to a low fixed-rate mortgage could be the perfect solution to alleviating some rising monthly costs.

October 2021 saw the lowest level of mortgage application approvals since the middle of 2020, primarily due to the end of the stamp duty holiday, according to figures released from the Bank of England.

BOE data shows a total of 67,200 home buyer mortgages approved in the month of October, a drop from 71.851, and a significant decrease from 104,547 reported in November last year.

The report also indicated a sharp fall in amounts advanced to buyers during the month, showing a net mortgage lending figure of £1.6 billion, a drop from £9.3 billion recorded in September.

The fall follows months of frenzied property buying, with figures for the year up to September for property sales, reaching £500 billion, largely due to the stamp duty holiday. The tax break led to a rush for buyers to complete before the deadline date at the end of September. The pandemic also changed the priorities of buyers, with many seeking larger properties.

“October’s decrease was driven by borrowing brought forward to September to take advantage of stamp duty land tax relief, before it was completely tapered off,” the Bank of England commented.

October saw an increase in re-mortgaging activity as lenders competed for clients by offering ultra-competitive deals. The month saw a total of 41,642 remortgages approved, up from 32,745 recorded in the same time period in 2020.

The head of residential research at the property firm Savills, Lucian Cook, stated: “There is no great surprise to see a fall in the number of mortgage approvals in October, given the distorting effect of the end of the stamp duty holiday in September.”

His data showed that £513 billion was spent in the UK property market, in the year up to September. This is the first time this figure has exceeded the £500 billion mark and £170 billion higher than pre-pandemic levels.

“That reflected the unusual coming together of three key factors, the so-called race for space as people looked to trade up the housing ladder, the cheap cost of mortgage finance and the added impetus of a stamp duty holiday,” he commented.

“Activity in the more expensive price brackets continues to hold up strongly, so we expect to see a higher than normal spend in 2022, though it’s difficult to see how spending next year can match the extraordinary levels of late across the market as a whole without such a mix of strong drivers.”

Housing analyst and Chief Executive of Twindig, Anthony Codling, commented that he though the BOE’s figures for mortgage approvals are “comforting” and indicated that the property market was moving back to normal levels following the end of the stamp duty holiday.

“At 67,199, mortgage approvals in October were 2.7% ahead of their 10-year average, suggesting that the housing market is a long way away from the cliff edge,” he said.