I was asked by a journalist the following questions so I’ve turned them into a blog. Hopefully it might give you a little insight as to where things are at.
Did the property market cool down in May, or was it as frantic as ever?
Has the property market cooled? No – with the heat it’s generating I’m surprised extinction rebellion aren’t protesting at the BoE; it’s as busy as ever with up to 16 buyers for every home that comes to market along with a shortage of supply and home builders unable to keep up with demand it’s no longer about who negotiates best, it’s all about who negotiates first, the early bird catching the worm has never been truer. If you’re wanting to buy GET PREPARED.
Which sector of the market is most active, e.g. FTBs, landlords, etc?
With a raft of 95% mortgage deals about, the most active markets are both first time buyers and second steppers looking to get that extra space that everyone craved during our time in lockdown, and whilst the stamp duty holidays first tier is coming to an end this month, in certain parts of the country where you can still take that second step, as long as the property price doesn’t exceed £250,000 then you’ve still got until the 30th September to complete without having to pay stamp duty.
Are people more focused on their summer holidays than the Stamp Duty holiday now?
Given the way that the green list is being amended I wouldn’t be surprised if more people decide to spend their money moving rather than risking going on holiday to find they have to quarantine when they return.
Is the property market in a bubble, and is this whole thing going to end in tears with FTBs up to their necks in negative equity?
However, we do need to be cautious as we clearly are in a bubble with prices far outstripping wage growth and demand continuing to rise. That said, there’s no signs of it slowing and due to the lopsided supply/demand imbalance it’s unlikely to go pop – in the event that we see a slow down it’s likely to be a gradual float down to earth rather than a bang, so I’m not fearful of negative equity as long as the economy continues to rebound as it has so far.
As always if you’d like to talk through your mortgage options then don’t hesitate to contact us.
YOUR HOME (OR PROPERTY) MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
