Reasons For Optimism In Housing Market
With so much uncertainty right now, it is easy to see why people are choosing to adopt a cautious approach to most things in life. This is the case with the housing market. Even though the UK Government has re-opened the market, there is a wide range of opinions on whether this is the right time to do so.
Some people are looking to move as soon as possible. There are many reasons and circumstances which necessitate a move. Therefore, if people need to move, it is good they can do so, as long as social distancing measures are followed. People who don’t want to move right now are under no obligation to do so.
Of course, in these challenging times, it is vital to look for positive news and causes for optimism. Housing market behaviour in the short-term is difficult to predict, but some leading housing market and mortgage specialists are optimistic about the longer-term future.
Nick Sheratt, from Mojo Mortgages is one of the many experts who has spoken about the mortgage market during the lockdown. He has said; “From a purchase perspective, I am not expecting any significant movements in the short term. We are seeing purchase transactions going ahead. From a re-mortgage perspective we have not seen a great downturn in those transactions, so there is no kick start to the market required. There are some challenges from a conveyancing perspective, naturally. Brokers require support from legal companies and lawyers to ensure we can keep transactions moving.”
Not every comparison rings true
It is natural people look back to previous turbulent times, and try to draw a comparison between then and now. However, those looking at the market crash of 2008 need to realise that these are different circumstances. Yes, both of these eras were extremely problematic, but there is no suggestion the same long-term problems will arise now.
Nick Sheratt continued by saying; “I am calm about house prices. I think we are likely to see some turbulent swings, but in my opinion these will be minimal. Naturally, there will be some trending downwards, but I’m not envisaging anything like what we saw a decade ago. I think once lockdown ends, we will naturally see a spike in transactions, where people have been waiting to try and get their homes in place.”
With Rightmove issuing positive figures for the tentative first days of the housing market re-opening, there is a suggestion that buyers are keen to move sooner rather than later.
One reason to be positive about the market is the fact mortgage products are increasing, and mortgage lenders are offering more support. When lockdown started, the priority of most lenders was to focus on people requesting a mortgage holiday. After this, current customers looking to re-mortgage was a priority.
Given many mortgage lenders were operating with a smaller workforce, this was understandable. However, as we move forward, it is heartening to see a broader range of mortgage products available to choose from. Also, with interest rates being at a historically low level in the UK, there is an opportunity for many people to find an affordable mortgage.
Applying for a mortgage is the last thing many people are considering, but for some individuals and households, now is the right time. Mortgage lenders are still active, so anyone interested in arranging a mortgage, should prepare themselves for the process, and speak with industry experts.