Friday, March 29, 2024

Supply issues ease with 24% increase in properties brought to market

New data reveals millions of UK property owners looking to remortgage and develop

Simon Bath, property expert and CEO of iPlace Global, the creators of Moveable, explains why increasing trends in remortgaging and developing have contributed to a property market cooldown

It’s arguably been one of the most volatile periods for the housing market and now, Britain’s red-hot property market may be about to simmer down. New research from Rightmove reveals that there has been a 24% jump in the number of prospective sellers bringing homes to the market, as estate agent appraisals have reached the highest level since January. In what looks to be a significant slowdown in the market – one which has previously defied rising inflation, a living squeeze and a pandemic – it appears that current shortages of housing are about to be alleviated. 

Landmark research from property concierge platform, Moveable, has found that 1-in-5 millennials are looking to re-mortgage their home in order to buy a second one. Rising property prices come as welcome news for homeowners looking for access to a larger pool of capital, and Moveable’s data – alongside Rightmove’s study – suggests that it is the new wave of Brits looking to remortgage their homes to let out or develop a second, that could further ease supply and demand issues and help make the market more affordable for millions of others. 

In January 2020, the average price of a property in the UK was £231,940, according to the ONS, which stands at £136,674 lower than the current average. Rising prices are welcome news for those looking to remortgage as their loan to value (LTV) percentage decreases, meaning they can get a much more competitive deal than the one they were previously on. The number of borrowers using another stream of property income to pay off their mortgage almost doubled from 20% in 2020 to 38% last year, and those using it to pay off unsecured debt remained steady at around 27%. These trends were largely driven by the significant rise in the number of people releasing equity to not only lock in better interest rates, but also to access a larger pool of capital and secure a second property. 

Simon Bath, property expert and CEO of iPlace Global, the creators of Moveable, explains why increasing trends in remortgaging and developing have resulted in signs of a property market cooldown:

“We are already seeing smaller increments in house price rises, exhibiting signs that the property market is cooling. This will in some part be due to the rise in remortgaging and developing patterns that have essentially assisted with overcoming the supply chain issues in the market, and could help to further put the brakes on rising prices over the next year.

“There’s been a general change of pace around the housing market, meaning that Brits are now looking to property development and buy-to-let as another source of steady income. Ever since the beginning of the 2000s, the housing market has seen an increasing trend in the ownership of more than one home, with people having this objective in mind. Currently, one in ten adults in the UK have wealth from properties additional to their own home, with many of them receiving some form of income through developing and buy-to-let. Houses are way more valuable now than they used to be, and with that comes investment opportunities.
 
“For these reasons, it’s fascinating to see a rise in remortgage trends. While traditionally, remortgaging your home was a great way to find and secure more affordable mortgage deals, the continuous increase in house prices has encouraged many more people to release equity and secure a second home to set them up for the future. Whether it’s to flip the property and sell off, or for a buy-to-let, it’s clear that homeowners are becoming more property-savvy in the way they think, and I predict that this will undoubtedly stimulate housing supply levels in the next year.”

Sam Allcock
Sam Allcockhttps://www.abcmoney.co.uk
Sam heads up Cheshire-based PR Fire, an online platform that has already helped over 10,000 businesses to grab widespread media coverage on their news at an extremely accessible price point.

Recent Articles

Related Stories

sakarya escort bayan Eskişehir escort bayan