Despite a predicted decline in mortgage lending in 2024, Jesmond residents and first time buyers may not be significantly impacted, according to local experts. Instead, Jesmond’s local economic resilience indicates a continued stability in the area.

UK Finance projects that rising interest rates and living expenses will cause a drop in lending for home purchases by 8% in 2024.

By the end of next year, there will likely be 128,000 cases of mortgage arrears and more repossessions as a result, according to the bank industry body.

The Bank of England has kept interest rates at 5.25% for a third successive time. Governor Andrew Bailey told the BBC that “we’ve come a long way but there is still some way to go”.

Even with this halt, the average mortgage payments have gone up. Those with tracker mortgages are paying £540 more per month than they would have in December 2021, while people with a standard variable rate mortgage (SVR) are paying £299 more.

Fraser Greenwell, director and mortgage protection specialist at Northern Standard Mortgages feels that a fall in mortgage lending was to be expected due to the cost of living crisis and high interest rates.

However, the image above shows that property prices across the north have been relatively steady. Greenwell told JesmondLocal that this trend is “mirrored in Jesmond”.

Despite predictions at the beginning of 2023 that house prices would drop, this has not transpired in the north as significantly as it has in parts of the south, as shown above.

Greenwell said that “the predicted national decline has not been directly reciprocated in Jesmond and other local areas” but did warn existing home-owners looking to remortgage that they should expect the interest rate they will be charged to go up “due to the change in landscape from recent years”.

Jesmond estate agents Bailey & Co. have tipped 2024 to be “another muted year” for the housing market, but assure buyers that the average asking price for a property could drop by 1%.

The company’s property expert, Tim Bannister said that those seeking mortgages are in a much more favourable position now than this time last year. “Though mortgage rates are still high, the mortgage market is much calmer,” he said.

The steady rate at which average mortgage rates have begun to fall means homeowners can be more certain of the cost and type of mortgage they receive. Just this week, a high street lender began offering rates under 4%.

One person looking to move in to Jesmond is Fay Louise Purdham.

Purdham owns multiple businesses in the north east including the Pixie Dust Event Cleaning Services and The Signature Laundry Company.

Purdham said she has wanted to move to Jesmond for a while because of the “traditional feel of families in the area” as well as its “really exciting potential for businesses”. As the owner of five businesses, Purdham added that Jesmond’s location is ideal for work. “You get big, beautiful homes and it’s in the middle of Newcastle and surrounding areas,” she said.

Fraser expects Jesmond “to always be one of the high demand areas of Newcastle”.

However, Purdham admitted that her plans to buy a house in Jesmond have been slowed down by the cost of living crisis – “running a building just seems unrealistic with today’s energy costs,” she said.

Additionally, data collected by The Independent showed that two-thirds of first time buyers had mortgage applications rejected.

Irregular incomes and self-employment were two reasons that applicants found themselves unsuccessful. Purdham admitted this “has her worried, especially as a first-time buyer – it makes your options shrink”.

When asked about any specific mortgage products or schemes, Purdham responded: “Government backed mortgages are an interesting option that I will definitely consider”.

The government’s mortgage guarantee scheme aims to support a new generation of house buyers. Through this initiative, 95% more loan-to-value mortgage solutions will be available, allowing more households to obtain mortgages without having to make unaffordable deposits.

Despite the economic uncertainty, Purdham believes Jesmond is an area which will “always increase in value” but is insistent for this to happen, “people must invest”.

Purdham said she intends to navigate her way through the challenge of finding her dream home by “being savvy” and “taking risks”. In addition, to help through the cost of living crisis, Purdham told JesmondLocal that sustainability can make a significant difference to people’s expenditure – “solar energy is a huge way forward, and growing your own food helps also”.

Brian Dowling, director of Baltic Mortgage Solutions, a company based in Newcastle, told JesmondLocal that “the housing market in Jesmond is very stable and buying a property there represents long-term equity growth”.

Dowling said: “I have not seen Jesmond house prices suffer in the last 20 years I have covered the area and do not expect this to happen in the foreseeable future”.

He added that “lenders’ appetite to lend remains strong” and “those who want to buy still can”.

Dowling said that “managing the expectations of vendors is the key to maintaining a healthy housing market”.

It’s evident that Jesmond is a distinct housing market with many landlords and freestanding homeowners, but the general consensus suggests that the predicted fall in mortgage rates in 2024 won’t nearly affect Jesmond as badly as it will other areas of the UK.