Low deposit 5 year fixed mortgage rates are at an eight year high of 3.9 per cent with some banks’ products over 5 per cent The Sunday Times reported that last time the average cost of 90 per cent mortgages was this high was in January 2013, when the UK was gripped by fears of a triple-dip recession because of a plunge in manufacturing output.
Towards the end of the week, as we came out of lockdown, we have started to see agents becoming busier with both new listings and viewings. Those agents who have taken on the highest number of new properties are the ones that are benefiting from an influx of buyers generated from online searches.
Agents are likely to be extremely stretched as they try to not only generate activity on their new properties but also try to push through sales that are stuck in the solicitors’ backlog. The Movewise property team have been very focused this week on the sales pipeline as the pressure mounts to exchange and complete on properties before Christmas.
We have also seen investors coming back to the market, particularly in cities where they can get good yields. Many are based abroad and therefore video tours, generally conducted by agents, and 3D Matterport photos have been well used. Agents are reporting many of these properties going under offer unseen as travel restrictions remain a barrier to viewing properties in person.
The market is still highly price-sensitive and, with only a handful of exceptions, vendors are having to be competitive with asking prices. Some, who may have only purchased their property 3 or 4 years ago, are having to sell at a loss. If you are moving up the ladder and selling and buying in the same market, this could work in your favour.
Have a great Sunday evening.
The Movewise Team.