The property market had only just started to show signs of recovery since the whole of the country was caught up in Brexit but now there is a much more serious growing concern that is effecting the UK property market.
2020 May be the year that changed the world forever, with a lot of the world grinding to a halt and what looks like a recession on the horizon it is a tense time for everyone.
We spoke with an expert at Get Me My Mortgage that specialise in bad credit mortgages and getting mortgages for clients that don’t always fit into the standard criteria who said ‘ we are expecting to see a slow rise in interest for house moves and remortgages, initially there was a lot of interest around remortgaging when the base rate was cut to the lowest level ever. Once the banks started to pull mortgage deals there was far less options for those with little equity or a low deposit. A lot of people are furloughed and we wont know what effect this will have on the economy or the ability to get a mortgage will be at the minute. We are currently seeing a lot of interest for company director mortgages but we expect that the market will make a quick recovery once the situation is fully resolved and the economy returns.
House prices are predicted to plummet this year which may be good news for some buyers who are still in a position to buy but is likely to be bad news for those looking to make a quick sale (source). Prices are predicted to go in a V like motion and increase 5% by 2021 which may make more potential sellers and buyers hold on until the market has recovered.
Although we are past the peak the economic recovery has only just begun, with the phased return to work and businesses still struggling due to there not being enough money to keep all of there staff we may be yet to see the employment outcome for a lot of people.
Within the property market there are going to be lots of casualties from conveyancing to estate agents. When the lockdown commenced these businesses essentially ground to a halt and are only just starting to recover, with the lack of confidence in the market there are far fewer people viewing homes and willing to purchase that we may see this situation continue until there is more clarity and science around the virus.
If you have been or think you may be effected by the problems that the housing market is facing then you should consider your options carefully. If you are in a position where you can wait to move and are comfortable then it may be best to speak with your broker or lender and see what options you have. click here to speak to an expert mortgage broker about your situation and they will be able to get the best deal if you are thinking about buying a house in 2020
Its to early to tell what the future will hold for the property market but industry experts and the government are expecting the economy to recover quickly but only time will tell. Countries that are further on in their own epidemic will be closely watched to see the outcomes and how long it takes for their own economies to recover and this will give us some indication on how long ours may take, china, where the virus originated are already seeing their economy start to recover.