Election result to release pent up demand in housing market

The latest Mortgage Trends Update report by UK Finance has been released, showing the changes in the number of mortgages completed during October 2019.

The report highlights:

• 32,260 new first-time buyer mortgages were completed in October 2019, 2.8% more than in the same month in 2018.
• 33,370 homemover mortgages were completed in October 2019, 4.2% more than in the same month last year.
• There were 18,910 new remortgages with additional borrowing, which was 20.8% fewer than in the same month in 2018. The average additional amount borrowed for these remortgages in October was £51,000.
• There were 20,660 new pound-for-pound remortgages, 20% fewer than in October 2018.
• 6,600 new buy-to-let home purchase mortgages were completed in October 2019. This was 1.5% fewer than this time last year.
• There were 16,200 remortgages in the buy-to-let sector, 2.4% fewer than the same month in 2018.

Shaun Church, Director at Private Finance comments on UK Finance’s latest report: “The home-mover market is slowly getting back up and running, with the number of completions up 4.2% month-on-month.

“Thursday’s election result has delivered some clarity, in that some form of Brexit now seems inevitable. This greater certainty is likely to release pent-up demand, as the many sellers and buyers that have sat on their hands for the past couple of years will now be galvanised to pursue their home-moving ambitions.

“Easing house prices should also inspire prospective buyers to make a purchase. This window of opportunity won’t stick around forever, with prices likely to nudge back up as more activity returns to the market.

“Buyers that are seriously considering making a move in the New Year should act quickly to take advantage of the discount priced in to many properties up and down the UK, as well as the ultra-competitive mortgage rates currently on offer.”

You can read UK Finance’s full Mortgage Trends Update here.