Housing market activity remains strong
The October 'UK Residential Market Survey' from the Royal
Institution of Chartered Surveyors (RICS) reported another
strong month for the housing market across the UK.
The survey feedback indicated that buyer enquiries, agreed
sales, new instructions and prices have all remained firm. A net
balance of +46% of respondents cited an increase in new buyer
enquiries and together with this rise in demand, the number of
new properties being listed for sale also increased for the fifth
successive month, with a net balance of +32% of respondents
reporting a rise in new instructions. This is the longest run of
growth seen in the Survey since 2013.
Looking ahead, respondents remain positive about activity for
the rest of 2020, but the longer-term outlook is subdued, with
a net balance of -27% of respondents anticipating that sales will
begin to weaken over the next 12 months.
Home sales pipeline increases
According to Zoopla, the home sales pipeline is now 50%
bigger than this time last year, with 140,000 more buyers
rushing to buy a home before losing out on the Stamp
Duty holiday, which is due to end on 31 March 2021.
Elsewhere, Nationwide have reported a total 91,500 mortgages
approvals were granted in September, which is well above the
August figure of 84,700 approvals and represents the highest
level since September 2007.
The stampede to buy homes is being driven by a combination
of the government's Stamp Duty holiday, as well as people
reassessing their housing needs following lockdowns. There are
concerns that the current high volume of sales going through
will create delays in the conveyancing process and this could
be exacerbated by lockdowns. Zoopla have estimated that only
54% of sales agreed in January will have completed by the end
of March, compared with 92% of those agreed in November.
Mortgage payment holidays extended
The mortgage payment holiday scheme had been due
to end on Saturday 31 October, but as a second national
lockdown for England was announced, the scheme has
been extended across the UK, allowing borrowers who
have not yet applied for a mortgage holiday to ask their
lenders for a repayment break of up to six months.
Homeowners who have already asked for a payment break can
extend their mortgage holiday for a further three months until
they reach the six-month limit. However, some borrowers will
not be eligible for the extension because they have already had
two mortgage payment deferrals up to the six-month limit.
One in three interested in self-build
According to research from the National Custom and Self
Build Association (NaCSBA) and the Building Societies
Association (BSA), 32% of people are interested in building
their own homes.
Interest in self-build was found to be highest in younger age
groups, with 48% of those aged between 18 and 24 saying they
were interested, compared to 18% of those aged 55 and over.
However, finding the money to finance the project, including
mortgage finance was found to be the main barrier, according
to three in five people (59%).
|
According to Zoopla, the home sales
pipeline is now 50% bigger than this time
last year, with 140,000 more buyers rushing
to buy a home before losing out on the
Stamp Duty holiday, which is due to end on
31 March 2021 |
|
