Our monthly residential market review is intended to provide background to recent developments in property markets, as well as to give an indication of how some key issues could impact in the future.
Property market reopens under new rules
On Monday 11 May, the government surprised many by announcing the reopening of England’s housing market from the following Wednesday. Rightmove reported nearly 5.2 million visits were made to its website on the first day of the lockdown easing, which was a 4% increase on the same day a year earlier.
Under the announced changes, both estate agents and members of the public have been given the green light to travel to properties for viewings and to undertake house moves – albeit with certain rules in place to enforce continued compliance with social distancing.
These include, but are by no means limited to, sellers being obliged to wait outside the property while viewings are completed, as well as the number of viewings per day being restricted and potential buyers being encouraged to view the property virtually in the first instance. Some estate agents may also ask prospective buyers to complete a health declaration before allowing them to view a property.
COVID-19 crisis underscores importance of quality green spaces
Access to green space has been hugely important in maintaining the nation’s mental wellbeing during the pandemic lockdown, with those lacking access finding it much harder to cope. This is according to ecology consultancy Ecological Planning & Research Ltd (EPR).
The firm suggests that all new Local Plans should be revised to emphasise the importance of high-quality open spaces, green infrastructure and sustainable travel as essential parts of new housing developments.
Managing Director of EPR, Ben Kite, commented: “The limitations imposed by COVID-19 lockdown have brought to the forefront the need to be clever about improving access and creating pockets of greenspace to protect our wellbeing, and that of the wildlife we are welcoming back to our streets, parks and gardens.”
Mortgage rates fall to record lows
The Bank of England’s base rate cuts to 0.1% have resulted in mortgage rates now sitting at all-time lows. The average overall two-year fixed rate is now 2.09%, a drop of 0.34% between March and May.
While those on variable rate and tracker mortgages stand to benefit, it has proved to be more difficult for those in the higher loan-to-value (LTV) ranges to secure a mortgage, with many lenders pulling mortgage products from the market and increasing rates, particularly for 95% LTV mortgages.
Encouragingly, lenders are now beginning to reintroduce products and starting to relax their LTV restrictions. Borrowers with a 10% deposit or equity will be pleased to see an average drop of 0.17% and 0.26% in rates for two and five-year fixed deals, respectively. Eleanor Williams, Finance Expert at Moneyfacts, concludes: “Mortgage lenders are still open for business and, for those eligible, rates are low.”
View the latest property market statistics.