With the recent boom in buying and selling in the housing market, it’s no surprise that the typical house price has risen by 9.9% in the last month. This is an increase of more than £30,000 on average since the beginning of the pandemic.
Despite this and the end of the stamp duty holiday, the demand for homes has remained strong. So why is this so?
Many have theorised that it’s the delayed rush of those that would have moved during covid happening now or simply new perspectives. We could be here for quite a while thinking of the why, but it is human nature to move.
With that in mind mortgage applications have remained robust with many still remortgaging or looking to buy new properties/homes.
However, Robert Gardner, Nationwide’s Chief Economist did note that “Combined with a lack of homes on the market, this helps to explain why price growth has remained robust”.
Still, the general influx and demand along with the price inflation have meant that more than 10% of mortgages are higher than the monthly average recorded in 2019.
This is no surprise considering that mortgage lending increased to £30.7 billion in September likely due to the stamp duty holiday and Toni Smith, chief operating officer at Primis, said:
“Today’s figures highlight the ongoing strength of our housing market. Whilst the September numbers were likely boosted by the extended stamp duty holiday, the drivers motivating people to buy or move home remain strong.
However, as we start to see an increase in the cost of living and a potential rate rise looming, many households will find their finances squeezed. Within this context, the role brokers play in supporting their customers to access the best possible deal for their circumstances will be vital.”
Elliot Cotterell, Managing Director of My Mortgage Maker Said: “With all of this in mind; if you consider the current low mortgage rates and with the pending inflation looming now is the time to contact your mortgage advisor to secure the best rate for you.”
In need of some advice? Call us on 01225 962 532.
*Your home may be repossessed if you do not keep up your mortgage repayments*