21 December 2019
Will the housing market see a Boris Bounce?
There are high hopes that the landslide Conservative election victory will lead to a ‘Boris Bounce’ for the housing market. Early signs are encouraging, with some estate agents reporting a flurry of sales in the aftermath of the result.
2019 has been a tricky year for the market with transaction numbers subdued as many would-be buyers and sellers adopted a ‘wait and see’ attitude. Brexit and the general election has created so much uncertainty, which is not good for confidence, and the housing market rests on confidence. However, lenders remain keen to lend, with rate cut after rate cut as they compete for what business is out there.
Subsequently, mortgage rates are attractively low, with two- and five-year fixes from sub-1.5 per cent. Those lenders who can’t compete on rock-bottom rates are offering tempting incentives instead, such as no fees or free valuations, and loosening criteria.
Some market pundits have called the bottom of the market, but it may be a little early for that given that Brexit negotiations still need to be hammered out. However, it looks as though the market is expecting a bounce and 2020 could see buyers and sellers return if there is more confidence around.
We expect lenders to continue to offer competitive rates into the new year. It is a good time to be a borrower – that is, if you can find a property that you wish to buy.