If 2020 taught us two things, always check to see if you are muted on a Zoom call and the real estate market is incredibly resilient.
The mortgage market has been busier than expected in recent months. Because of this, I firmly believe that despite the sinking, the end of the stamp duty vacation will be nothing more than a little speeding.
We’ll see the market slow around March 31st as people resign themselves to the stamp duty coming back to being a reality, but when we’re behind us I expect the market to keep picking up will win.
Why Should Brokers Be Optimistic for 2021?
The story is illuminating, and looking ahead to 2020, we can predict with some confidence that demand won’t drop dramatically – regardless of when the stamp duty deadline expires.
While the stamp duty vacation last year certainly helped propel the market forward, it certainly wasn’t the only factor.
The savings increased massively through blocking, so that customers could make larger deposits. Being trapped at home also made people reevaluate what they needed in a property.
Whether it was a garden in the summer or an extra bedroom to be converted into an office, there were many people who wanted to move home because of the longer time.
Unfortunately, there have also been a number of divorces as a result of the lockdown, which resulted in more people looking for more property. As a result, there is still more demand than supply.
All of these factors mean that regardless of the end of the stamp duty, the property market should continue to thrive.
Despite the recent lockdown, creditor confidence has remained and the news of the vaccine should improve it. Therefore, higher mortgage lending value (LTV) mortgages are unlikely to be withdrawn, as we saw in 2020.
With 90 percent of LTV mortgages now back on the market, more first-time buyers should buy in early 2021, especially since they are unlikely to be affected by the reintroduction of stamp duty.
This trend of increasing first-time buyers should continue throughout the year and help keep the market moving.
Benefits of working from home
Another reason for optimism is that despite the recent lockdown, the real estate market has been given the green light to continue, although speculation may halt.
The vaccine, which will be launched across the UK, should also build confidence in the market and drive activity.
We set monthly business records in the final quarter of 2020. While we’ll likely see a slight decrease in that pace, I believe the cliff edge discussions are far from the goal.
The demand is still there and although prices may drop after the vacation program ends, this should help first-time buyers get on the residential ladder.
Most brokers have also adapted incredibly well to working from home, now easily assisting clients remotely.
This move to remote work has actually helped many brokers to advise more clients in the best possible way. Without having to travel to meet people, brokers can complete tasks faster and have more time to spend with clients and speak to lenders.
With so many customers looking to buy and with brokers better equipped to serve more people, 2021 should be another great year for brokers.