As the housing market reopens there is demand with 5.2 million visits from prospective home movers supporting house prices.
With the opening up of the housing market by the government, Rightmove has recorded 5.2 million visits by home movers is up 4% on last year indicating demand can support current house prices.
The number of properties listed on the market are 90% down compared a year ago, however, supply of new listings are up 111% week-on-week as house hunters return to the market.
Demand from first time buyers will be lower as lenders withdrew 91% of all fixed rate mortgage products with high 90% and 95% loan to values due to the higher risks of these borrowers.
Home buyers may place working from home high on their list and properties offering this flexibility could attract a premium as commuting needs are less of a priority.
Re-start of the housing market
The Housing Secretary Robert Jenrick announced that the housing market would re-start in England on 13 May 2020 releasing £82 billion of pending transactions.
The housing market reopening was a surprise to the industry as it was expected to remain in lockdown until June.
Social distancing rules to limit the virus spreading would apply to estate agents for viewings, show homes, removal companies and lettings allowing 450,000 home buyers and renters to progress their plans.
The lockdown has not impacted remortgage buyers or buy-to-let landlords at the end of their existing mortgage deal as they can switch to a preferential rate to reduce your monthly repayment costs.
People now have experience working from home during the Coronavirus lockdown and re-assessed their housing needs for more space which may have increased demand in the housing market.
Miles Shipside Rightmove director said, unique enquiries on property for sale doubled from the day before, though we expect consistent momentum to rebuild over several months rather than weeks.
New procedures for housing market
Estate agents are now responsible for implementing the government housing-sector guidelines for social distancing when home buyers are looking for a home.
This means a change in the way people view properties and the government states this should be virtual to start with including technology and video options.
There will be a need for estate agents to screen the health of sellers and buyers should they have Covid-19 symptoms or are in the vulnerable group of people and have procedures to avoid contact with surfaces while in properties.
Virtual viewings should be used initially and physical viewings should only take place if the home buyers are genuinely interested in the property.
Social distancing could be an issue for equity release buyers as they are part of the vulnerable at high risk to the Coronavirus and providers do offer desktop as well as physical valuations.
What are your next steps?
Speak to our LCM mortgage advisers if you are planning to move home, buying your first home, remortgaging your existing home to a new cost effective mortgage deal or are a buy-to-let investor.
Start with a free mortgage quote or call us and we can take your details. Learn more by using the mortgage monthly cost calculators, equity release calculator and property value tracker chart.
For equity release buyers our London City Mortgage brokers can recommend lifetime mortgages allowing you to receive cash from your property to help maintain your standard of living as costs rise.
