Private Finance comments on Halifax House Price Index for May 2020
08 June 2020
Shaun Church, Director at mortgage broker Private Finance said: “Lockdown’s strict measures have caused activity in the housing market to seize up, resulting in a momentary dip in pricing.
“Buyers are worried their financial position might deteriorate in the future. As a result, they’re pulling back from the market. Growing job insecurity and sharp reductions in income due to a drop in working hours or enforced salary cuts has left some consumers under intense financial strain. This has resulted in buyers delaying purchases until they have clearer visibility over the next year.
“Low transaction levels* may offer buyers an opportunity to negotiate on price, which could be partly reflected in last month’s fall. However, since the easing of lockdown in England, we have experienced a sudden uptick in enquiries. This suggests the market’s bounce back is underway, driven by a swift release of pent-up demand.
“The disruption caused by the pandemic has added complexity to many activities. This could result in an increase in buyers and sellers seeking expert advice to help navigate the complicated sales process as we enter the post-coronavirus economy.
“As lenders return to the market and offer higher LTVs, buyers may be encouraged to pick up their property searches again and push on with purchases. Higher LTVs are also offering a route to entry for first time buyers again, which will give sellers access to a larger pool of consumers.”
