Finance News

Election result to release pent up demand in housing market

Em Morley - December 18, 2019

The latest Mortgage Trends Update report by UK Finance has been released, showing the changes in the number of mortgages completed during October 2019.

The report highlights:

  • 32,260 new first-time buyer mortgages were completed in October 2019, 2.8% more than in the same month in 2018.
  • 33,370 homemover mortgages were completed in October 2019, 4.2% more than in the same month last year.
  • There were 18,910 new remortgages with additional borrowing, which was 20.8% fewer than in the same month in 2018. The average additional amount borrowed for these remortgages in October was £51,000.
  • There were 20,660 new pound-for-pound remortgages, 20% fewer than in October 2018.
  • 6,600 new buy-to-let home purchase mortgages were completed in October 2019. This was 1.5% fewer than this time last year.
  • There were 16,200 remortgages in the buy-to-let sector, 2.4% fewer than the same month in 2018.

Shaun Church, Director at Private Finance comments on UK Finance’s latest report: “The home-mover market is slowly getting back up and running, with the number of completions up 4.2% month-on-month.

“Thursday’s election result has delivered some clarity, in that some form of Brexit now seems inevitable. This greater certainty is likely to release pent-up demand, as the many sellers and buyers that have sat on their hands for the past couple of years will now be galvanised to pursue their home-moving ambitions.

“Easing house prices should also inspire prospective buyers to make a purchase. This window of opportunity won’t stick around forever, with prices likely to nudge back up as more activity returns to the market.

“Buyers that are seriously considering making a move in the New Year should act quickly to take advantage of the discount priced in to many properties up and down the UK, as well as the ultra-competitive mortgage rates currently on offer.”

You can read UK Finance’s full Mortgage Trends Update here.