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Financial Easing Key To Restarting The Property Sector

The news that lenders are easing restrictions in the mortgage market is the crucial element which will enable a rapid restart of the property sector once the lockdown ends.

Registered buyers with the firm are keen to proceed as soon as possible and vendors are confident in bringing their property to the market.

Sam Gibson, head of residential agency for Galbraith in the north of England, said:

There are now several signs that the restrictions may potentially be lifted in Mid-May or early June. Although a great deal of uncertainty remains, what we do know is that the property market is likely to rebound very rapidly.

At the beginning of the year demand throughout the north of England was very strong. This continued all the way through March until all activity was paused. In my conversations with buyers and sellers, it is clear they want to continue as soon as they can, whether they are midway through the process of a sale or at the very start of house hunting.

Now that lenders are making it easier to obtain a mortgage, this is the final piece in the puzzle.

Four of the UK’s major mortgage lenders have announced  more generous terms for borrowers, including an extension in their loan-to-value ratios, reduced mortgage fees or an increase in the maximum loan offered.

In Northumberland alone, Galbraith has a range of properties priced from £150,000 to just under £1 million about to be formally launched for sale as soon as the lockdown is over.

In Perthshire demand from potential purchasers has in some cases exceeded the same period in 2019 and some properties have sold at a closing date during the period of lockdown. The number of instructions to sell has also reached the same level as would be expected at this time of year.

For purchasers, virtual viewings have in some instances proved useful and many estate agents have 360-degree videos of each property on their web site. For sellers, agents will advise on how best to prepare a property for sale, both in terms of the administrative processes that can be initiated at this time and the maintenance jobs that should be undertaken at the property to ensure it is looking its best before marketing.

Sam continued:

Some purchasers are telling us that they expect to bring forward their decision to move house, once free movement begins again – they have used this time to reassess their priorities and lifestyle. This crisis has also acted as a catalyst for some people to move closer to friends and family. Not only do we expect a flurry of activity post-lockdown but we are banking on these buyers to have had a good long think about what it is they want – we’re going to be pitching fresh houses to people who are poised to buy as soon as the property market opens. We can’t wait.