fbpx

Good Move: Mortgage applications high despite soaring prices

Jake Carter

October 21, 2020

Mortgage applications are at an all time high, despite rising prices reported in Rightmove’s latest HPI, according to Ross Counsell, chartered surveyor and director at Good Move.

Rightmove found that the average price of a property coming onto the market rose by 1.1% (£3,534) in September, reaching a national record of £323,530;  this figure is 5.5% (£16,818) higher than September 2019.

Counsell said that the rise in house prices, paired with the increase in mortgage applications, suggests that buyers and sellers are taking advantage of policies such as the stamp duty holiday.

He said: “Lockdown has had a hugely positive impact on the housing market, and this can account for the rise in house prices today.”

“More and more people are looking to move away from cities and flats to homes with more home-working and outdoor space, and with high demand for these properties, comes higher prices.”

However, the medium to long-term outlook of the UK housing market still remains uncertain, added Counsell, who believes that the future of the property market will depend entirely on how the wider economy performs, and therefore will not become apparent until the conclusion of both the stamp duty holiday and the furlough scheme.

He concluded: “This will affect many people looking to buy or sell their home, but first-time buyers are expected to be affected the most.

“It is probable that lenders will tighten their criteria for granting a mortgage and be more cautious to who they lend to, so FTBs may struggle getting on the ladder once the reality of an economic recession kicks in.”


Sign up to our daily email