Pent-up demand from the first lockdown combined with the stamp duty holiday on properties up to £500,000 really helped the UK housing market to bounce back after the summer.
House prices in November were 7.6% higher than in the same month a year earlier, according to Halifax bank. But all homes are not equal when it comes to the recent boom.
Average flat prices
In London, the average price of a flat increased by more than any other property type between 2011 and 2019. But over the past 12 months the situation has changed. Flats are now being the poorest performers when it comes to housing stock.
And this mirrors what we’re seeing at Mortgage Confidence. Mortgage Adviser, Jo Jingree explains: “This year we’ve helped several clients who have decided to move away from London. This is because they think they don’t need to be commuting full time now. Whilst others are avoiding flat purchases because they’re conscious of how people struggled without outside space in the first lockdown.”
What will 2021 hold?
But with a vaccine now being rolled out, might 2021 see more of a return to normality than we initially expected?
If that’s the case, then now could be a very good time to consider a flat purchase. Prices are lower than they have been, and stock is significantly higher. And there’s good news for first time buyers who might be considering doing just that. In the past few weeks more lenders have started to offer deals to buyers with a deposit or equity of 10 percent.
Re-entering the 90% market
Jo added: “Understandably, it has been more difficult to secure a mortgage this year and processing times have extended beyond what we’re used to seeing. In addition, there was very little availability of 90 percent mortgages, which made things particularly difficult for first time buyers. So, it’s great to see those deals coming back on to the table.”
“Halifax has very recently launched some 90 percent products just for first time buyers which is amazing news as they are the biggest lender in the UK. Hopefully, this will give other lenders the confidence to re-enter the 90 percent market.”
If you are a first time buyer and thinking about stepping on to the property ladder then why not get in touch?
Jo offers a free 30 minute no obligation call so you can find out more about your mortgage options. And if you are keen to buy but still working on that deposit, why not check out our blog about the Bank of Mum and Dad? Something to chat about over the turkey perhaps?!