The Chancellor’s Spring Statement served to further reiterate the dire financial struggles that many are facing as their money is stretched further than ever before. At a time when absolutely every penny counts, there is a real need for advisers to support their clients in making the best possible decisions for them.

In the space of just a few months, the Bank of England has already hiked interest rates three times, most recently to 0.75%. The Bank now expects inflation to hit 8% later this spring, and the OBR expects it to average at 7.4% this year, so further interest rate rises are expected. For prospective homebuyers and those looking to remortgage, this will have a costly knock-on effect as cheap fixed rate deals will become all the more difficult to find. Securing the best value deal will become of paramount importance and advisers are best placed to help their clients do so.

Some clients will have got the timings right and will be relieved that they have already secured a fixed-term mortgage, but there will plenty of others fretting that they are unable to secure an affordable fixed rate, or that their current fixed rate will soon come to an end and they are faced with the prospect of considerably higher costs. In this instance, advisers have a real opportunity to step in to help their clients and deliver real value by helping them understand the options available to them and supporting them in making the best possible choice for their circumstances.

While the growth in house prices has slowed down over the past few months, they are yet to start falling. The latest government house price figures showed there was a month-on-month increase of 0.7%, with the average UK house price £24,000 higher than the same time last year.

For first-time buyers in particular, such increases represent a continuous struggle. Just as they manage to save enough for a deposit, the cost of their first home climbs a step further out of reach again. In addition, soaring inflation means the savings built up for a deposit will be being eroded all the time, making it even harder for first time buyers to take that first step. Advisers can provide significant value to first time buyers in helping ensure they are financially prepared and resilient enough to embark on the journey of buying their first home.

While the property market has remained rampant until now, there are a multitude of things currently at play that could trigger a fall in house prices – albeit slowly. The prospect of rising inflation and increasing interest rates, alongside high energy costs, the worsening cost-of-living crisis and the uncertainty surrounding the war in Ukraine, could well take the wind out of the sails of the market and cheap mortgage deals will likely disappear.

While the Chancellor announced a number of welcome measures, they will not entirely remove the financial sting being felt by many. The prospect of weakened financial stability will no doubt make prospective homebuyers think twice before committing to the costly process of moving home, which could see house prices drop as a result. However, as there are still supply versus demand issues, a fall in house prices would likely be slow and may not materialise for a few months. As such, those needing to remortgage or move home sooner will no doubt feel the financial pressure of doing so and will need the support of their adviser in navigating the process.

The past two years have been anything but predictable, and so far 2022 appears to be following suit. While the housing market has been resilient throughout, the current circumstances may finally prove too much and clients will be reliant on the expertise of their adviser to help them through it.

Charlotte Nixon is a mortgage expert at Quilter