What is the current state of the UK property market? Given the impact of the COVID-10 outbreak on the UK property industry, it’s no surprise to see a negative number in the latest Nationwide House Price Index.
The UK property market has been paralysed for months, and mortgage lending has been greatly restricted. The big question is whether this is the beginning of something worse or just a minor blip.
Some in the property industry have predicted a double-digit drop but do say there is likely to be a rapid bounce-back. We should also consider the increased number of people now seeking to move away from heavily-urbanised and populated areas to something a little more spacious and tranquil.
With the latest Bank of England mortgage figures showing a fall in approvals to 15,800 in April, around 80% lower than the February, we asked Hugh Wade-Jones, the Managing Director of Enness Global Mortgages for his thoughts of the current state of the market:
‘’The latest figures present a dramatic decline across the market with both lender and buyer activity evaporating at a greater rate than forecast. But before we head for the hills, it’s important to remember that this data only provides a snapshot of market conditions and one that was taken in the midst of a full market shutdown.
You wouldn’t cut someone down at their knees and expect them to run a marathon and quite frankly, it’s a wonder that any mortgages were approved at all let alone funds deployed.
So while the UK property market may be experiencing an out of body experience du to an abrupt reduction in activity, it’s far from being pronounced and although it may take a month or two to see recovery materialise, early indicators at ground level suggest there is plenty of life in it yet.’’