Market Update

Welcome to the latest weekly blog.

This week I wanted to give you a brief market update and my opinion of what is currently happening.

During the last two weeks I have had two of my clients who are actively looking for a new home mention to me that they felt house prices were high right now and what I thought about this.

My response to them is that might be the case but also the expected property crash and house values falling has not happened. Instead, as we reported at the end of last year house prices had increased. Therefore, this may be why they feel house prices are higher - because they are.

The property market has not really slowed down either. I have spoken to a lot of local estate agents and they have never been busier.

Due to plenty of properties coming to the market but also the sustained demand for people wanting to buy, houses prices have not gone down as a lot of people expected they would.

This in part is down to the stamp duty holiday but also the fact that people are still keen to get onto the property ladder. It is the same with any industry, if the demand for something is there then prices generally will not start to fall.

We may see this change once the stamp duty holiday has finished. However, there is still a lot of demand to buy property and more availability of lower deposit mortgages so we may well see prices remain steady - only time will tell.

From a mortgage point of view there is lots more mortgages now available. Lenders are starting to understand how to assess income which has been affected over the last year and have policies around Furlough income and reduced salaries which means they can now lend when six months ago they would not.

So, in summary, there is still lots of demand for houses, lots of properties on the market and money available to borrow. We do not know what will happen moving forward but everything that was expected to happen with the property market has not yet. We will just have to wait and see.