(qlmbusinessnews.com Fri. 9th Aug, 2024) London, UK —
House Hunting Set to Surge as Buyers Snap Up Homes in Record Time.
The housing market is poised for a boost this autumn as the “mood music” shifts in favour of increased property sales, according to surveyors. However, a recent survey by property portal Zoopla reveals that some buyers are making quick decisions, with one in five putting in an offer after viewing a property for less than 20 minutes.
This comes as the UK's largest mortgage lender predicted house prices would continue to rise throughout the remainder of the year.
Rising Expectations
The Royal Institution of Chartered Surveyors (RICS) has reported that expectations for a rise in sales have reached their highest level since early 2020. Their monthly report indicates that surveyors anticipate increased activity over the next three months, with even more growth expected in the year ahead.
Simon Rubinsohn, RICS's chief economist, attributes this shift to recent government commitments to housebuilding and a cut in interest rates by the Bank of England—the first reduction in four years.
“While there are still significant challenges in achieving planning reform ambitions and it’s unclear whether the Bank of England will continue easing rates, the current policy environment is becoming more supportive of the housing sector,” Rubinsohn noted.
Buyer Demand vs. Supply.
Buyer demand is expected to increase, but this surge may not be met with a corresponding rise in the number of homes available on the market. This imbalance could lead to higher prices and increased competition among house hunters.
According to Zoopla's survey, a fifth of buyers who purchased a property in the last five years made an offer after viewing it for just 20 minutes or less. Some buyers even spent less than five minutes looking around, though the average viewing time was reported to be 49 minutes.
Daniel Copley, a consumer expert at Zoopla, advised, “Buying a home is the most expensive purchase most people will ever make. It's crucial to thoroughly inspect all aspects of the property to avoid potential costly issues later on.”
During the pandemic, lockdown restrictions led to a surge in virtual viewings, with some buyers making offers without physically visiting the property. The desire for more space, both indoors and outdoors, along with stamp duty incentives, particularly boosted sales in rural and coastal areas.
Mortgage Market Trends.
Since then, rising mortgage rates have slowed sales. However, there are signs of increased competition among lenders, with expectations that the overall cost of borrowing will decrease.
Halifax, part of Lloyds Banking Group, recently commented that falling mortgage rates are “encouraging” for first-time buyers, those moving up the property ladder, or those refinancing. Nevertheless, the bank cautioned that affordability challenges and a limited supply of available properties continue to pose significant hurdles for buyers.
Last week, the Bank of England cut interest rates to 5%—the first reduction since the onset of the pandemic in March 2020. However, the bank's governor warned against expecting a series of further cuts.
3 Tips for Making Your Mortgage More Affordable:
1. Make Overpayments: If you're still on a low fixed-rate deal, consider overpaying now to save on future interest.
2. Switch to an Interest-Only Mortgage: This can keep your monthly payments manageable, though it won’t reduce the principal debt.
3. Extend Your Mortgage Term: While the typical mortgage term is 25 years, extending it to 30 or even 40 years can lower your monthly payments.
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