At Stones Residential, we know there is a balance between what is happening now, and what is likely to happen in the future in the housing market.
There is considerable activity now, and a lot of people are moving home. However, it appears as though a slowdown might come along sooner rather than later. However, we believe there is still cause for optimism as the housing market moves forward, and we are not alone in thinking like this.
Industry experts have a lot to say these days
Tim Bannister, Rightmove’s director of property data, says: “Buyer demand remains very strong, though with an all-time low in the number of properties available for sale on estate agents’ books and new stock at higher than ever average prices, there are early signs of a slowing in the frenetic pace.”
Tim Bannister continued by saying; “However, higher prices combined with a lack of fresh choice coming to market are reducing some buyers’ ability or desire to move, and while we expect the market to remain robust, there are early signs of a slackening in the incredible pace of activity that we’ve seen over the last year. This super-charged activity cannot go on forever, but we expect the market to remain vigorous for at least the remainder of the year.”
However, even while many industry experts tip a slowdown in the market, there are still many prospective buyers who believe.
Market analysis carried out by the Building Societies Association (BSA) found 30% of respondents think this is a good time to buy property.
While this is still a strong response, it represents a fall on the 37% who shared their opinion the previous month.
What are home buyers looking for?
The study spoke to people who are likely to move home or who will buy their first home in the next six months, and the following findings were made:
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Location remains the leading priority for property buyers
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73% of respondents said obtaining more private outdoor space was vital, which represents a significant rise
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62% of respondents said moving away from built-up areas and being closer to nature was important
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Finance was an important factor too, with many people looking to move to better manage their mortgage payments:
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51% of respondents cited reducing their mortgage payments as being a driving factor in switching
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This represents a big increase over the 37% of respondents who cited this in December 2020
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59% of respondents said raising a deposit was likely to be the biggest barrier to them stepping on the property ladder
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A lack of job security was cited by 48% of respondents, which is high, but less than the 68% cited by respondents in September 2020
Paul Broadhead, Head of Mortgage and Housing Policy at the BSA, said: “These latest results are an encouraging sign that the impacts of the Covid-19 pandemic are starting to fade for many, as confidence in the housing market remains strong. There’s no doubt that the government support measures introduced over the last 12 months, such as the Stamp Duty holiday, have been key drivers of the confidence we see. It does however appear that the market will remain buoyant as these incentives come to an end.”
Paul continued by saying; “Whilst the Nationwide Building Society House Price Index reports house price growth of over 11% in the last 12 months, and our research shows 50% of the public think further price rises are likely in the coming 12 months, it’s not surprising that raising a deposit has returned as the biggest challenge for those wanting to get on the property ladder. It’s therefore good to see that in addition to a number of societies supporting the government’s First Homes initiative, many have also re-introduced low deposit mortgages as part of their standard mortgage range.”
Paul Broadhead concluded by saying; “Amongst all the positive signs in the housing market, it’s important to note that almost half of the respondents have concerns about their job security. Whilst this is a declining trend, it remains clear that there are many people for whom the pandemic continues to have a negative financial impact and it’s important both for lenders and government to ensure that appropriate safety nets are available to give households the support they need when they need it”.
If you would like to arrange an appointment to help you negotiate the local housing market, please contact Stones Residential today by calling us on 020 7483 0685 or emailing belsizepark@stonesresidential.co.uk.
