Many home buyers have taken advantage of the SDLT holiday introduced in July. This trend has been echoed by the large increase in the level of regulated bridging enquiries we are receiving. Further, we are seeing more enquiries for those looking to move to the countryside and coastal areas. There has been a large shift in those looking to move out of crowded towns and cities. In a recent survey, Rightmove found searches for those looking to buy homes with gardens was up by 42% in May compared to the same month last year.
We are seeing the SDLT Holiday is naturally having a larger impact on the lower end of the property market for properties around the £300k-£500k mark. Overall the housing market has seen more properties come to market, even those above £500k. This may be because sellers in wealthier demographics are less likely to be affected by the recession.
The main roadblock we are coming across for those looking to use bridging finance is their exit strategy. Although interest rates on residential mortgages are for the most part very low at the moment, many borrowers are finding it difficult to secure a remortgage for when their bridging loan ends. Even properties above £500k+ are finding themselves in slightly more difficult positions when it comes to selling their homes. That said, sales in properties sub £1m appear very buoyant.
With COVID restrictions in place again and the furlough scheme ending, there is more uncertainty around the economy, so the property market may well take a dip again. This is having an impact on property investors and the level of risk they are willing to take when timescales of when they will be able to get returns on their investments is uncertain.
At Greenfield we understand every case is unique, we are happy to work with you to find the best solution for your client. Give us a call to discuss your cases and receive knowledgeable support, competitive products and speedy underwriting decisions.