The post-lockdown property market.
*This article was first published in June 2020.
We have witnessed the property market pick up since lockdown restrictions were lifted in Tunbridge Wells and surrounding areas. This is positive news for buyers and sellers alike. Research published by estate agent Knight Frank has reported that offers are being accepted at record rates as interest returns and downward pressure on prices eased in June.
London is highlighted as experiencing a significant upturn in demand, as can be seen in the graph below, but it is a similar story across the country. Outside London in the week ending 6th June, the number of new prospective buyers was the highest it has been since May 2018; while in London the number was 54 per cent ahead of the five-year average. There has also been a significant increase in online activity on sites such as Rightmove and Zoopla.
Read the full Knight Frank publication for further insights: Property market post lockdown, June 2020
Mortgage activity.
In late March, mortgage lenders significantly cut their product offerings in response to house sales and purchases being put on hold and the need for mortgage-payment holidays.
Mortgage lending data shows there were 1.2 million mortgage searches in the month of June, overtaking the number of searches seen in January and February prior to the lockdown.
The resumption of housing market activity has transformed the lending landscape, with lenders and surveyors now able to complete physical valuations and inspections that will allow them to clear a backlog of mortgage applications.
A change in home-buyers’ priorities?
According to a Rightmove survey of more than 4,000 home-movers, more than one third of buyers (39%) in the market have altered their priorities post-lockdown.
The biggest changes in what people now want in their next home are:
A bigger garden or access to one (63%)
A bigger home (43%)
Access to a parking space or garage (36%)
A better home workspace (36%)
Living closer to parks and green spaces (31%)
Wanting to live in a rural area (30%)
Living closer to friends and family (24%)
With an increase in home-working during lockdown, which is likely to become the norm for many as people and businesses embrace video conferencing and remote-working technology as long-term business solutions, it should be no surprise there will be a shift in what people prioritise in their search for a home.
Support for mortgage customers.
While some may be feeling more optimistic, others may be feeling less so due to the impact lockdown has had on the employed and self-employed alike. Thankfully there is still support available, and in June the Financial Conduct Authority (FCA) confirmed support for customers who are struggling to pay their mortgage due to coronavirus. This support includes a full or part payment holiday for a further three months and for customers yet to apply for a payment holiday, they now have until 31st October 2020 to do so.
Here to help.
Every situation is different and talking to an independent Mortgage Adviser can give you options you might not have thought of, or indeed thought possible. You can find out more about our in-house Mortgage Adviser, Laura Ashby, on our mortgages page, or alternatively, arrange a free no-obligation chat with her by contacting us.
This article offers information about mortgages and should not be taken as personal advice. Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.