This year has been a rollercoaster ride; unexpected, scary and at times life-threatening. The impact that the pandemic has had on many people’s lives, homes and jobs is unprecedented, as well as impacting many industries that has had a widely affected our economy.
The uncertainty around the property industry was given a boost in 2020, by the introduction of the Stamp Duty tax rule changes which are in place until the end of March 2021. We are pleased to see that confidence in the property industry is now on the rise and we have compiled a summary of positive news for prospective homeowners.
Mortgage Lenders Are Catching Up with Demand
Earlier this year, directly after the first national lockdown, industry experts estimated that there was a backlog of approximately 65,000 surveys waiting to be processed for mortgage applications. More recently, lenders are said to be catching up with the demand and things are now getting back to normal.
Record-Breaking Numbers of Applications
Since the end of the first lockdown 2020, we have seen a record-breaking number of mortgage applications and things are not slowing down. Our in-house mortgage adviser Tristan, said:
“It has been a really busy time and we have seen more applications than ever before. We are looking forward to this continuing throughout the Stamp Duty holiday period and into 2021.”
Mortgage Lenders Roll Out More 10% Deposit Mortgages
In January 2020, it was thought that you could have chosen from over 700 different 90% LTV mortgage offers, which fell to just 65 and then even lower in the months following the announcement of lockdown. This was due to some uncertainty around our economy and due to sheer volume of applications and business levels being so high.
We are pleased to see that the number of 90% loan to value mortgages, meaning that borrowers need only a 10% deposit, are now increasing. This provides more opportunities for new homeowners and first-time buyers that were hoping to get on the property ladder this year but were not able to due to the pandemic. Great news!
Good News for Sellers Too!
Data from Rightmove shows that properties have generally been taking longer to sell since the referendum for ‘Brexit’ in 2016. It takes longer to find a buyer at the start of each year. In January 2019 it took an average of 77 days – the highest figure recorded since the referendum.
This year’s data has been heavily influenced by the market shutdown, but the immediate impact of July’s stamp duty cut is now being seen. In July 2020, properties took 66 days to be marked ‘under offer’ or ‘sold subject to contract’, but that figure fell to just 49 days in November – the lowest recorded by Rightmove to date.
What Will 2021 Look Like for the Property Market?
What we know for certain is that 2020 is ending on a record high for the property industry. As we approach the end of the Stamp Duty break, we could see the market slow but the general consensus among property experts is that sales will remain fairly consistent next year and that confidence in the industry is rising. Brexit may be a factor to consider when it comes to house prices, but we are unable to predict the impact that it will have so will be keeping a close eye on property news as the story develops.
We welcome all prospective house buyers in the Andover and Whitchurch areas to get in touch with our team of experts at Graham & Co. If you have questions about purchasing a new home, want to know the best mortgage deal available for you or have any property related queries that we can help to answer, give us a call so we can help to you to sell your existing property and find your ideal home in 2021.