A lack of stock and a mass of purchasers make for a tense marketplace

With school summer holidays looming, we are seeing clients look to agree a purchase and complete in time for the new school year. 

This may include moving postcode or some distance in order to get the kids into the right school. 

This increase in an already pressurised market is resulting in soaring house prices and a busy summer. 

We are back in the environment where it is commonplace for a property to have multiple offers and being bought through ‘best and finals’.

This can be stressful for those purchasing, however, with a good broker, you will have the confidence to make an informed best and final offer to secure that property. 

From suburbia to the countryside

High numbers of clients are still moving out from more urban areas into the countryside. 

Wales, the South West, and anywhere south of the M4/M25 are proving popular, and the pull of having some acreage and space for the family is a big must for a lot of people nowadays. 

Equestrian facilities ranging from paddocks, shelters and the odd stable to American barns, a menage or two, horse walkers and even gallops can be considered under residential mortgage financing. 

We are taking the time to really get to understand what kind of lifestyle change or improvements our clients are looking to make and can then relay this to the correct lender to have the case agreed. 

Staying close to the city

Back in the cities, we are seeing demand rise. 

The idea of being able to work back in the office and have a shorter commute is also drawing people back to move closer to work or purchase a second property in the city whilst the larger family home is situated further out. 

Down-valuations on properties

Valuers are, however, generally in a more pessimistic mood.

Down-valuations, mainly on remortgages, are more commonplace and in particular single high-value homes can be tricky to find comparable evidence to accurately produce a valuation for a lender. 

Valuers tend to look at property transactions in the local area within the last three months – the more recent, the better.

With some single high-value properties, there just may not be comparable evidence, and the valuer, therefore, may err on the side of caution when producing their report.

Lenders are, however, lending much higher loan-to-value products than they have over the last 12 months and rates are very low, so although a down-valuation may be frustrating, we do generally have options for our clients if this happens.  

The changing property market

Looking forward, we hope, as COVID restrictions ease, we may see more housing stock come onto the market as it becomes easier for estate agents to arrange viewings.

This should hopefully ease the pressure on vendors and buyers, and make for a slightly less tense autumn!

Fox Davidson

Fox Davidson is an award-winning team of property finance consultants. To discuss your property funding requirements, please email [email protected] or call us on 0117 989 7950.