A post COVID bounce!? Who’d have thunk it….
The last few weeks have been a blur! Ever since the government gave the green light for the housing market to re-open it has seen things running, well, shall we say, a little hot.
There has clearly been pent up demand for people to buy and sell homes, so the initial fears of an immediate housing market collapse haven’t transpired. That doesn’t mean the market won’t drop in future however.
Currently much of the UK’s workforce is wrapped in a cushion of furlough cash and it would be foolhardy to think that when the “cash-tap” is turned off that redundancies won’t follow. This in turn could lead to a drop in demand within the market. There are also likely to be regional differences in how the housing market fares, dependent on the local jobs markets.
As things stand though, it still feels like a bit of a roller-coaster. Lenders are still trying to clear the backlog of property valuations from the lock-down period. We have buyers who have applied in March, who are still waiting for their property valuations to be carried out. This is stretching the patience of even the most “zen” of buyers and sellers.
There is still a lack of lenders with higher loan-to-value offerings, with only a small number of 90% loan-to-value products available. This has meant early morning starts to get funds booked for clients, as we are seeing the deals disappear by 9:30am!
We would expect the pace of the market to drop as the months roll on, but until then we are keeping hold of our hats and enjoying the ride.