Has the property market boiled over?

It’s apt that while we’ve all been sweltering in the unusually hot start to the summer, the house-builder Bellway has begun building an eco-house called The Future Home with the University of Salford to test the effects of double and triple glazing, solar energy and heat recovery in temperatures as high as 40C and low as 20C. Many of the technologies being tested are due to be in common use in new homes by 2026 so I’m looking forward to seeing the results.

Meanwhile property prices continue to rise with lender Halifax saying that prices so far appear to have been largely insulated from the cost-of-living squeeze. For borrowers about to come off a fixed rate mortgage they will see their monthly payments increase, so looking at a remortgage well in advance will see rises kept to a minimum and in many cases our expert advisers will be able to find a deal that saves you money.

Rightmove Reports

Rightmove reports that the property market is cooling from a boil to a simmer despite recording the sixth consecutive asking price rise this month and average prices rising by a heady 9.3 per cent since the start of the year.

A continuing desire to move and low numbers of homes for sale are driving further price growth even at a time when personal finances are becoming increasingly stretched. Buyer demand continues to exceed historically normal levels and is now 26 per cent higher than at the same time in 2019.

A Busy Mortgage Market

We see the mortgage market busy across the board this summer as homeowners are keen to get a good price for their property and move up the ladder fixing a mortgage before rates rise again. Many of our customers are surprised to find that once we look at their finances we can secure an excellent mortgage deal for them, usually a much better one than if they go direct to a high street lender.

I know that getting a deposit together to buy a home is never easy, so I was pleased to see that the latest English Housing Survey revealed that first-time buyers using their savings to purchase their first home had increased from 76 per cent to 91 per cent since 2017-18, whereas buyers receiving a gift from family or friends decreased from 36 to 23 per cent over the same period.

The Bank of Mum and Dad

I’m not suggesting that the bank of mum and dad will be a thing of the past but perhaps the legacy of the pandemic lockdown has enabled some proper life-changing savings to be made. Another positive factor for the availability of mortgages is that job security is high as the latest figures from the Office for National Statistics (ONS) revealed demand for workers remains strong with vacancies hovering near record highs.

Using a broker like The Mortgage Brain means a stress-free experience. Check out some of our excellent reviews, there’s no need to get hot under the collar when you’re making the biggest purchase of your life. Our advisers will be with you every step of the way.