Following a marked period of inactivity, the housing market is beginning to show signs of bouncing back as the government eases lockdown restrictions. In this article, the expert mortgage advisers at George Square Financial Management take a look at the current market conditions and consider whether now is a good time to buy or sell your property.
Back on the move
In March, property viewings and valuations froze as the UK went into lockdown, leaving up to 373,000 transactions on hold according to Zoopla figures. However, though it is perhaps too early to gauge the full impact that COVID-19 has had on the sector, there are encouraging signs that the housing market is beginning to bounce back as lockdown restrictions are eased.
Following the reopening of the housing market in England last month, pre-coronavirus sales that were in the pipeline are now largely going through. It also appears that COVID-19 has brought a new group of prospective buyers into the housing market, with many people looking for a home with more space and a bigger garden. The reported rising interest in properties suggests that England could be back on the move.
Encouragingly, there has been little sign of panic selling. According to Rightmove, the price of homes coming to the market has increased by 1.9 percent compared to pre-lockdown, with record numbers of owners asking for valuations in May and June. Activity is reported to have grown across all pricing levels, but the higher the value of a home, the greater the increase in supply and sales as people look to trade up.
It’s worth noting that some lenders are taking the decision to reduce the maximum LTV (loan-to-value) people can access, stating they need to ensure borrowers can afford mortgage payments and that they are better protected against the potential for negative equity, should house prices decrease. This will likely have an impact on first-time buyers with a smaller deposit. If you’re concerned about the reduction in LTV mortgages, please do get in touch. George Square’s expert mortgage advisers can help identify the right lender for your borrowing capacity.
Is now a good time to buy or sell a property?
Providing your surrounding market is solid and your location holds its value, now could be as good a time as any to explore your buying or selling options. While it’s true that rates and products are improving, it is worth keeping in mind that the market is changing daily. As such it is always wise to seek professional guidance.
Whether you’re a first-time buyer, professional landlord, moving home or simply looking for a better deal on your existing mortgage, the George Square Financial Management mortgages team offers independent mortgage advice that is 100% impartial.