Despite the past week of Boris Johnson's announcement that Covid-19 cases/deaths are still on the rise and there is speculation of another lockdown, the property market has not yet taken a hit from this. There is still a high demand of rental properties, whereby they are still coming onto the market and producing over 100 enquiries, as rentals are so sparse currently. With regards to sales, these are still moving quicker than before lockdown, this could be due to stamp duty but also the uncertainty of another lockdown and wanting to move before this. As the market is still strong it is important to note that if you are currently thinking of moving, please be aware that there is only six months left now until the stamp duty holiday stops and currently there has been no statement made from the Government to say what will happen following the 31st March 2021. Therefore, before it is too late to miss out on this saving, which can be up to £15,000, speak to us this week so you won't miss out! Give us a call on 01233 501601 or email us firstname.lastname@example.org
Properties have since rose another 0.9% from August 2020, meaning that compared to September last year, house prices in the UK have increased by 5%. Nationwide have then said that the housing market has since “recovered strongly”, since the lifting of restrictions regarding Covid-19. However, for first time buyers, there has been a decrease in purchases, with job fears and lack of low deposit mortgages with a high LTV being held accountable. Mortgages for these buyers have been harder, as a low-deposit mortgage in most areas in the UK are harder to find. In London and the South East of England, before lockdown, these first-time buyers on average had a larger deposit to give the mortgage lenders with a high LTV. High LTV mortgages are usually more accessible to those with larger deposits, therefore easier in these areas on average to still secure a property. At Evolution, we have not seen a decrease in buyers being involved within a chain and still seeing 58% of properties that are STC having these buyers involved. Real Homes notes that even though there is a decline in first time buyers in some areas, they believe that there will be an increase in “second steppers” but will become more prevalent into next year.
If you are looking for a mortgage and would like to know more about the range of mortgages out there, then speak to Fingerprint Financial at https://fingerprintfp.co.uk/ for free financial advice.
READ MORE: https://www.realhomes.com/news/house-prices-why-a-property-market-crash-wont-happen-in-2020
READ MORE: https://www.bbc.co.uk/news/business-54353406
In August 2020, mortgage approvals jumped to their highest monthly amount since 2007, due to a high surge in pent up demand, change of priorities and needs as well as stamp duty holiday, giving buyers the extra push in moving. Numbers leapt in July from 66,300 to 84,700, which according to the Bank of England, is the highest monthly number since October 2007. Usually August is the lowest month of the year for mortgage approvals, due to August being the month where people choose to go on holiday. Overall however for the year, compared to the same period the year below, so far this year mortgages are down from 524,000 to 418,000. This could be due to May having the lowest figures since the early 1990's, due to Covid-19 restrictions.
Currently it is difficult to find mortgages with a small deposit percentage of 10% and most are around the 15% marker, with LTV rates being between 90-85%. Those with bigger deposits are in a much better position, therefore first-time buyers are struggling in some parts of the UK. The current average price of a property in the UK stands at over £245,000, which is the first time that this average has ever been this high. At the moment it is also harder to find shorter term mortgages with a lower interest rate, as lenders are trying to keep some security due to the recession and uncertainty of jobs.