It has been an interesting time recently in the residential property market, with uncertainty surrounding the Covid-19 pandemic, together with government incentives and changes in buyer’s taste in property.
Post-Lockdown surge
The property market re-opened for business in May as estate agents were able to return to work following lockdown. Pent up demand led to an increase in property sales, and this was followed by the Chancellor’s announcement in July that stamp duty would be removed for purchases of up to £500,000. According to Zoopla1, houses sold on average 12 days quicker than in 2019. Mid-July to mid-August also saw the highest number of properties put up for sale in a month since March 20082.
Gardens, the new escape from the day-to-day?
As many of us have traded dipping our toes in the Mediterranean for paddling in garden pools this summer(if we are fortunate enough to own one!), some trends are suggesting that high rise city living may be becoming less attractive compared to suburban or country homes where outside space is more prevalent.
As the world of work continues to be in a state of flux and ‘Zoom’ meetings continue to replace corporate boardrooms, the sales of higher end properties in Norfolk have jumped by 244% in July and August compared with the same period in 20193.
Bigger deposits needed for First time Buyers
As lenders adapt to the changing economic picture and the uncertainty attached to when the pandemic might end, larger deposits are being requested for those looking to make a purchase – and this is affecting those trying to step on to the first rung of the property ladder. Limited product ranges and stricter lending criteria offered by lenders to those with 10% or less deposits, means that home purchasers are often expected to seek 15% of the property value to obtain a suitable mortgage.
Mortgage advisers are even more valuable than ever!
In normal market conditions, advice can be the difference between being accepted or declined for a mortgage. The pandemic has emphasised this by making criteria even more complicated, and the situation is only likely to continue changing.
Get in touch with us today to find out how we can guide you through these unprecedented times.
1Zoopla (2020)
2Homes & Property (2020)
3 The Telegraph (2020)