Published: 05/08/2021Despite a slight drop in demand in recent weeks, the traditional summer lull looks unlikely this year as housing market activity continues to move at pace.
“The market has drawn breath in recent weeks, new mortgage approvals fell 6% in June, while buyer demand dipped 7% in the four weeks since June 28th. However, with over 81,000 mortgages approved in June, over 20% higher than the longer-term June average, and agents reporting buyer enquiries remain steady, the market remains buoyant.”
The PwC report consumer confidence is at its highest level since its survey began back in 2008. Although inflation has breached the government’s 2% target, there is little suggestion that interest rates will rise soon; mortgage rates remain close to their all-time low and affordability is on par with longer term averages.
“The increased availability in recent months of high loan-to-value mortgage products, thanks to the government-backed guarantee, provides support for both those looking to upsize and make lifestyle changes, and those looking to purchase their first home. Zoopla reports lending to first-time buyers has risen twenty five per cent year-on-year.”