Our monthly property market review is intended to provide background to recent developments in the property markets as well as to give an indication of how some key issues could impact in the future.
Overview
BUYER ENQUIRIES STABILISE – BUT HOUSE PRICE FALLS REMAIN LIKELY
May saw a considerable upswing in buyer enquiries from a record low net balance of -94% in April to -5% in May, according to the latest Residential Market Survey from the Royal Institution of Chartered Surveyors (RICS). Newly agreed sales increased from -93% to -35%, while new instructions also saw improvement, rising from -97% in April to -20% in May.
RINCREASED DEMAND FOR HIGH LTV PRODUCTS
First-time buyers and borrowers with smaller deposits are seeing a dip in their mortgage prospects for the second time in as many months, as major lenders once again pull high loan-to-value (LTV) mortgage products from the market.
MORTGAGE ILLUSTRATIONS INCREASE MORE QUICKLY THAN EXPECTED
Mortgage illustrations issued to aspiring buyers increased for the sixth week running in June, rising by 18.4% in the week to 10 June. According to mortgage technology provider Mortgage Brain, ESIS numbers are now down just 9.6% on pre-pandemic levels.
MORTGAGE ACTIVITY
- The value of gross mortgage advances was £65.8 billion in 2020 Q1, 3.8% higher than in 2019 Q1
- The value of new mortgage commitments (lending agreed to be advanced in the coming months) was 6.1% higher than a year earlier, at £67.6 billion
HOUSE PRICES HEADLINE STATISTICS
- House prices down 1.7% month-on-month
- Annual house price growth slows to 1.8%, down from 3.7% in April 2020