Young Buyers Place Mortgage Plans On Hold
Dealing with the COVID-19 pandemic is challenging for us all, but as is usually the case, some people in society will be more harshly affected than others. As the pandemic is likely to have a significant impact on finances and the economy, there are concerns about the longer-term impact on homebuyers.
The group most likely to be affected by this are house hunters under the age of 35 and studies carried out by Zoopla confirms this fear.
More than one third of prospective buyers in this group state they believe their property dreams are now on hold. 30% of respondents said that issues relating to arranging a mortgage or saving for a deposit will force them to delay their property plans until they have more confidence in their finances.
House prices are a concern for some buyers
Another 30% of prospective buyers say they have delayed their property search because they are concerned about house prices. A similar percentage of prospective buyers have expressed concerns about the economy as the key factor in delaying their next move.
However, while there are concerns about the short-term impact of COVID-19 on these buyers, there is still optimism that they will make a move in the long-run. Nine out of ten respondents said they still plan to move ahead with a property sale in the next 12 months.
Buyer demands are changing in the market
While some people have had their property plans placed on hold because of the pandemic, it should be noted there has been a change in buyer demands in the market. According to Zoopla, 42% of prospective buyers expect they will work remotely in the future, and this shapes what buyers want from a property. 22% of prospective buyers have made a home office a priority for them when they next make a move in the house market.
Andy Marshall, chief commercial officer at Zoopla, said: “Given the unprecedented impact of coronavirus, it’s to be expected that home buyers and sellers will have reordered their priorities and what they are looking for from their next home move. It’s reassuring to see that 86 per cent of those who had planned to move before lockdown still intend to go ahead with their plans in the near term.”
Andy continued by saying; “Without doubt, lockdown put the functionality of many homes under pressure, and many homeowners have emerged with a revised list of requirements that they’re looking for a new home to fulfil – as well as a need to move, fast. With more Brits looking to travel into the office less often, while socialising at home more, expectations of what a home can deliver look likely to be greater than ever.”
While there are new challenges to overcome in the housing market, people shouldn’t consider arranging a mortgage to be an impossible task. However, it is vital people accept help and assistance from professionals in the field. If you are keen to arrange a mortgage, speak to a mortgage broker or experienced adviser and make sure you are fully equipped to make an informed decision.