Property Market Update
With lockdown restrictions easing and the vaccination rollout in the UK continuing at pace, there is a sense of optimism that is hard to ignore. We are also now in the heart of one of the traditionally busiest times of the year in the housing market, and this year has supported that trend with gusto. The supply and demand issues discussed in the March edition continue to create tremendous competition, and we are preparing funding for clients in advance as a necessity. Without this preparation, they would not be allowed to enter the bidding process as agents dictate, in many cases, that without evidence of funding, simply viewing certain properties will not be permitted.
This is leading to a raft of our clients having to get themselves in a position to buy without the requirement of having sold their current property. These are patterns that we have seen before, and we are adept at negotiating on behalf of our clients to put them in the best possible position to win these races, so we would encourage you to engage with us as early as possible so a strategy can be formulated in advance of the bidding process. We are also now only 2 months away from the SDLT holiday ending, and clients are understandably keen to complete by that date, so I expect activity to remain strong. At this point, achieving completion by that date is certainly possible, but we are now entering a critical phase where soon it will become unrealistic.
The demand for country property shows no sign of abating. Although the vast majority of our activity remains in London, we are seeing more and more clients looking at second homes with the country agents reporting unprecedented appetite from buyers. We are also expecting to see an increase in demand for overseas purchases as the summer progresses and travel restrictions end. We will undoubtedly touch on this part of the market in future editions.
Last month, we pointed out the competitive nature of the mortgage market, and despite the upward movement in SWAP rates, the mortgage rate market continues to offer historically low rates. Fixed rates are now available from only fractionally over 1%, and the differential between 2 and 5 year fixed rates has never been tighter. As the demand for mortgages rises and activity level increases, the turnaround times with lenders were always likely to become extended. We have seen that happen over the past weeks. It is not reaching problematic levels at this stage, but the Henry Dannell team are mindful of putting our clients in the strongest possible position and will guide you accordingly.
As ever, we are here to help our clients achieve their aims. Should you require any support finding the right mortgage solutions fitting your requirements, we would be more than happy to assist.
Please note: a mortgage is secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.