Whilst the prediction of economic recovery is for the medium to long term, the green shoots are already starting to emerge with some firms responding to the current market conditions and launching new products. Skipton, who on the 9th May launched it’s 100% mortgage product aimed at the rental market, are one such company for instance.
Interestingly, Nationwide Building Society predicted a modest recovery of the housing market at the beginning of this month and in April house prices rose (by 0.5%) for the first time in seven months.
This may point to a lack of supply, a perennial issue with the UK residential housing market, and something made more acute as developers slow, or worse, shelve, their developments. However, it does show that there are still buyers out there and may encourage more sellers to put their properties on the market.
Indeed, the signs are there that our market is beginning to come back.
The number of mortgages rose sharply in the last month, with Loan approvals rising 18% between February and March. Combined with the latest figures from Rightmove highlighting the strongest increase of house prices so far this year. We very much see, or at least hope, that this is the start of things to come.
The wider issue of supply and creating products for first-time buyers, now means that lenders will have to keep innovating and possibly even drive change in the way we look at the mortgage market.
Do you see signs of a recovery as well?
