Request Callback
Latest News

UK Housing Demand Remains Consistent
Author: Carl Shave - Director
Updated on March 15th, 2021

With millions of people stuck at home, 2020 saw a mini housing demand, fuelled by a pent-up demand for bigger properties and outside space beyond big cities, as well as the temporary Stamp Duty relaxation, which is due to end in June.

However, first time buyers increasingly often found themselves a low priority when it came to getting a mortgage, as some lenders changed their criteria on 10% deposits, and bans on support from the Bank of Mum and Dad (or Grandma and Grandpa) amid concerns about repayments in the wake of rising job losses, especially amongst younger people.

However, 2021 has brought good news, with a widespread U-turn on the policy, although potential buyers have to provide evidence of at least six months secure employment. With the average price of a first home at £241,025, 61% of first-time buyers rely on family to help with the deposit, with contributions averaging up to £20,000.

Borrowings are now typically based on four or four-and-a-half times an individual or joint applicant’s income, whilst furloughed or self-employed people are required to provide more detailed information on their finances and job prospects to ensure mortgage repayments are affordable both in the short, and long, term, with other expenditure included. So, it is important to avoid risk, taking advice on mortgage options before making a provisional purchase commitment after a video viewing!

The Office for Budget Responsibility (OBR) along with a range of other experts, anticipate house price drops in the coming months, most likely equating to the 4-7% increase – largely attributable to the Stamp Duty benefit – in the last year.  However, the market at present continues to remain strong and opinions can differ, with some views being that demand will still keep house prices at a consistent level.  With vaccinations now available, it is expected that the economy will gradually recover, reducing unemployment, enabling property values to revert to the higher 2020 levels and remaining consistent till 2024.

Mortgage lenders will continue to closely monitor the economy and its impact on the housing demand market, as well as any Government interventions to support the sector, buyers and developers.

Whenever you may be considering your next mortgage you should seek guidance on all your options by talking to our trained advisers at The Mortgage Centres.   

Back to News

Thanks for getting in touch, a member of the team will be in contact shortly.

TrustPilot Badge