Property market latest statistics

Last year the UK faced uncertainty due to the political chaos. Now we have a majority government in place could we be in for a smoother ride. We have now left the European union officially but as we are in the transition period for the next 12 months to negotiate our trade deal with the EU.  Could we still be in for a bumpy ride?

Housing Market:

For December 2019 the housing market confidence improved drastically as net mortgage borrowing grew to £4.6bn in December according to the Bank’s Money and Credit report. The vast majority of borrowing was before the Tory election win to take advantage of low rates on offer and uncertainty in the marketplace. The new decade has started with optimism in the property market, but dramatic house price rises are unlikely. Economists forecast a rise of 2% for the annual average property price over the course of the year. Estate agent Savills expects the North West and Yorkshire to have the fastest house price growth over the next five years.

Bridging Loans:

The latest statistics released for regulated bridging loans show market share increased to an average of 39% in 2019 compared to 36% in 2018. Funding an investment purchase was the most popular reason accounting for 23% of all loans. The biggest driver was uncertainty around the general election where buyers took advantage of the fast and flexible bridging loans to purchase a property. The second most popular reason was a traditional chain break accounting for 18% of all loans in 2019. The average loan term in 2019 was 12 months and the average completion time for the sector was 47 days.

Buy-To-let:

Research provided by Paragon has discovered that landlords are planning to acquire HMOs more than any other property type this year. Landlords planning to purchase a property within the next 12 months 31% plan to purchase HMO’s which is up from 12% just three months ago. This is the highest level since Q2 2017 and is proving to be an attractive proposition for portfolio landlords. A quarter of landlords are planning purchase flats whilst 18% are targeting terraced housing. 9% of portfolio landlords (Those with four or more properties) are planning to add to their portfolio over the next quarter compared to just 1% of non-portfolio landlords.
The budget next month will provide more clarity of where the UK is heading with regards to private property rental. Landlords over the past few years have faced significant regulatory and fiscal changes and the hope is we are now entering into a more settled period.

Second Charge Mortgages:

Last week we covered the latest figures for the Second Charge Market click here

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