More than half of brokers believe the latest lockdown will have a negative impact on property sales during 2021, research by Virgin Money has found.

The lender says that 60 per cent of advisers are expecting home sales to be adversely affected, largely driven by concerns over finances according to 79 per cent of brokers; nervousness about the housing market for 61 per cent and worries over property prices for 50 per cent.

However, just 44 per cent of brokers report that the pandemic is having a significant impact on their business, compared to 54 per cent in October 2020.. 

In fact, 19 per cent do not expect to see any impact.

Advisers have cited changing lending criteria, service levels and a tightening of policy  as among the biggest challenges in the current market. Over a quarter pointed to the lack of high LTV products, which is an issue that the government’s new mortgage guarantee scheme is seeking to address.

Virgin Money head of mortgage distribution and general insurance Sarah Green says: “Our research shows that brokers think consumer confidence has been knocked because of multiple lockdowns and, while it is positive that we now have a roadmap out of lockdown, there is much economic uncertainty ahead which is likely to make buyers and sellers nervous. 

“The challenges faced by brokers as they navigate these unprecedented times are consistent with those reported in our survey from October and emphasise how essential it is we deliver on the needs of intermediaries.

“This is a key reason for us recently launching a dual branded business development manager team, so brokers can have direct access to a team when working on a transaction. 

“We are also excited to be part of the Mortgage Guarantee Scheme for first time buyers as we recognise how essential it is for them to get on the ladder and hope this will also help brokers working with that segment of the mortgage market. 

“Our aim is to provide as much support as possible for brokers, buyers and sellers alike as the industry navigates through the challenging times ahead.”