Property Market Update – June 2020

The property market has roared back to life since lockdown was eased, with more demand and activity that we’ve seen for a couple of years.

Focusing on key factors that influence the property market, the following are having a strong impact on buyer activity:

Need for increased living space

The recent lockdown has created a surge of interest in upsizing from families and couples who now realise their living space is just too small for them. This issue has been compounded for those with small or no gardens.

Implications of working from home long-term

Working from home will become far more prevalent. Companies have seen they can operate with home based staff, saving costs on premises at the same time. While many staff value the flexibility, this creates a need for a dedicated home office space.

Couple this with the fact that those working from home will not need to commute as often, it opens up the feasibility of moving further away from office locations. Significantly more London buyers are looking to move out of the city now.

Pent up demand

Due to the market slow-down in the lead up to Brexit, there is a 2 year backlog of sellers and buyers who want to get moving. This pent up demand remains, with the vast majority of sellers staying on the market and those in the middle of a sale holding on for lockdown to end to complete their transaction.

Favourable mortgage rates and products

The cost of borrowing is at an all time low, with 5 year fixed rates available. There is rarely such a good time to borrow which has driven significant interest from first time buyers – the lifeblood of the property market.

As soon as the lockdown was eased, mortgage companies brought new products to market, with plenty of new 90% loan-to-value mortgages available.

Busy summer market expected

July and August are usually quiet months for property viewings and sales. With the spring market largely put on hold, there’s a backlog of people very keen to move, plus those who have new requirements as a result of lockdown (as above). This year, most people will likely holiday at home rather than abroad or even in the UK, with plenty of time to focus on moving house and taking advantage of low interest rates.

If you’re thinking of putting your house on the market and looking for a new home, please get in touch with us, we’re here to help.

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