2020 was a challenging year for all of us. In the property market, we saw many changes as a result of the pandemic. Now, as we enter a new national lockdown, concerns are being raised for the many transactions currently underway. Many are looking at the government to extend the planned deadline of the stamp duty holiday. However, the market remains open under the rules of the new lockdown. With more mortgage products on the market and the return of high loan-to-value deals, there is plenty to be excited by.
What does the new national lockdown mean for the property market?
The property market will remain open during the new national lockdown, following confirmation from the government. This is good news for the thousands of home transactions currently underway. Although to remain possible, strict safety measures must be followed. These include social distancing and PPE precautions, as well as drastically reducing the number of people helping in the moving process. While agents and removal companies can still operate, the advice is that nobody outside of an individual bubble gets involved. Check the Ministry of Housing, Communities and Local Government for the latest advice if you have a move underway.
Will the stamp duty holiday be extended?
As the 31 March deadline quickly approaches, calls for an extension of the stamp duty holiday are being heightened. Many of the purchases currently underway are dependent on the savings afforded by the tax break. Reports show that a third of buyers will pull out of their transaction if they do not meet the deadline. Delays are being met through many parts of the property industry. They are the results of the release of pent-up demand and the subsequent backlog created from the first lockdown. Now, both industry professionals and homebuyers alike are calling on the government to reconsider an extension of the deadline.
The return of high loan-to-value mortgage deals!
High loan-to-value mortgage products returned to the market at the end of 2020. NatWest, Barclays, and many more lenders launched new mortgage deals. Now there are more options for people with smaller deposits, which is bringing them back to the market. This is great news for the market, with demand for housing so high following the events of last year. Lenders feeling confident to offer more mortgage products is a great sign for the market. We are looking forward to seeing more products coming back to the market over the course of the year.
What does this mean for the property market?
Although times remain uncertain, it is great news that the property market can remain open during the new national lockdown. Changes are necessary to keep us all safe, but we are delighted that home moves are still possible. Right now, the focus is on the fast-approaching deadline of the stamp duty tax break. As calls for an extension increase, we expect the government to make further comment. With positive news like the return of high loan-to-value mortgage products, there are still positive signs in the property market. We are looking ahead to another unprecedented year, with the hope that we all come through it stronger than ever.
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Home Move Hub has a dedicated team to guide you through your online conveyancing or survey transaction. We are available seven days a week, from the beginning of your transaction and beyond! Our team of advisors are always happy to help, answer your questions, and provide you with the highest levels of support as one of our customers. Contact us today to find out how we can help you!
