MT Finance: Brokers predict market recovery within nine months
MT Finance’s latest Broker Sentiment Survey has revealed that 40% predict that the property market will take between six and nine months to fully recover from the effects of the lockdown.
A further 15% see stronger market fundamentals and a recovery within six months.
However, 27% of brokers are less optimistic, believing it will take 12 months or more to recover.
A third (34%) of brokers predicted that lending levels would return to pre-COVID levels within six to nine months.
Brokers are more optimistic that the property market and lending levels will recover quicker than the economy, with over half (54%) predicting that the economy will stagnate for between six and 12 months, but will show growth after that.
14% of brokers think the economy will fall into another recession.
Of the 215 brokers surveyed, 51% felt the government was doing enough to get businesses going forward; 54% said the Furlough Scheme was having a positive impact on the financial services industry.
Despite lenders returning to the market, 36% of brokers said lender appetite was the biggest challenge they are facing during the pandemic.
Another 34% said support from third parties, such as surveyors and solicitors was an issue, followed by transactional volumes at 22%.
Only 6% of brokers noted consumer confidence as the biggest challenge.
When asked at what stage during the loan process they are encountering the most difficulties, 40% revealed it was the ability to initially source a suitable product for their client.
Another 20% of brokers said underwriting timescales were an issue, followed by the logistics of satisfying legal requirements while maintaining social distancing rules at 15%.
Gareth Lewis (pictured), commercial director at MT Finance comments: “These results offer an interesting insight into just how long those working in the industry believe the UK property market and wider economy will take to recover.
“An overnight recovery does not look likely, with most predicting it will take at least six to nine months to happen.
“While the government’s Furlough Scheme has evidently had a positive impact on unemployment- some further government stimulus would be very welcome to resurrect the property market once lockdown is lifted, such as a Stamp Duty holiday or concessions.”