This week saw the start of the government guarantee scheme with some banks and building societies offering 95% value loans for home purchases backed by the government if a borrower gets into difficulty.
Government boost to housing sector
Chancellor, Rishi Sunak said: “Every new homeowner and mover supports jobs right across the housing sector. By giving lenders the option of a government guarantee on 95% mortgages, many more products will become available, boosting the sector, creating new jobs and helping people achieve their dream of owning their own home.”
Not enough homes to go round
So whilst securing the mortgage to buy a home may be easier, a lack of housing stock means there aren’t enough properties for eager buyers.
In our own patch across North East Hampshire and the Surrey borders, we know that a lack of supply can also deter would-be sellers, who want to find their onward purchase before putting their own property on the market. More supply, equals more choice and more property to go round, which actually benefits everyone involved in the selling and buying property cycle.
In our opinion…..it seems as local agents, we are echoing what Rightmove has identified as a UK wide problem. The property portal’s monthly survey revealed that currently the housing stock available to buy has dropped to the lowest volume ever as buyers are racing to bid for properties.
The property race is on as it now takes 45 days on average to sell a property – this is also the lowest recorded time.
Rightmove’s latest data shows that in March the proportion of properties selling within a week of going online hit a record at 23 per cent of sales. Agents have sold 30 per cent of two and three bedroom semi-detached houses in under a week of being on the market – making this category the bestseller in the property race.
Rightmove reckons Covid vaccination rollout will motivate sellers
Tim Bannister, Rightmove’s director of property data said: “Growing optimism due to the vaccination rollout is encouraging people to look for a fresh start in fresh surroundings. Now that the Covid vaccination programme is entering the later stages, this may spur on reticent sellers and result in a good number of properties hitting the market as people look to get on with selling before September.”