• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
The DIY Doctor's Blog
MENUMENU
  • DIY Doctor menu logo
  • Home
  • Projects
    • All Projects
    • Brick, Block, Marsonary and Concrete
    • Damp, Condensation, Rot and Woodworm
    • Doors, Windows and Conservatories
    • Electrical
    • Fencing, Decking, Paving and Patios
    • Floors, Walls, Ceilings and Lofts
    • Garages, Sheds and Outbuildings
    • Gardening and Landscaping
    • General Building, Self Build and Renovation
    • General Repairs and Cleaning
    • Green Living and Eco DIY
    • Ground work, Foundations and Drainage
    • Heating, Central Heating and Boilers
    • Joinery and Carpentry
    • Materials, Fixings and Fixing
    • Painting, Decorating and Finishing
    • Planning Regs, Project Management and Safety
    • Plastering, Plasterboard and Rendering
    • Plumbing
    • Roofing and Gutters
    • Tiling and Tiles
    • Tools, Appliances and Access
    • DIY Tips
  • UK DIY Forums
  • DIY Videos
    • Bathroom DIY Videos
    • Building Foundation Videos
    • Building Videos
    • Carpentry and Woodworking Videos
    • Damp and Damproofing Videos
    • Decorating Videos
    • Electrical Videos
    • Fitting Blinds Videos
    • Flooring Videos
    • Gardening Videos
    • Green and Eco Friendly Videos
    • Hand and Power Tools Videos
    • Heating and Central Heating Videos
    • Kitchen Videos
    • Plastering and Drylining Videos
    • Plumbing Videos
    • Security Videos
  • Find Tradesmen
    • Find a Tradesman
    • Contract Download
    • Working With Tradesmen - Ultimate Guide
    • Home Improver Protection
    • Price Doctor
  • Tool Store
    • Tool Store
    • Bookstore
    • Tool Reviews and Product Reviews
  • Blog
    • Blog
    • DIY Competitions
  • About us
    • About DIY Doctor
    • What we do
    • Trade Shows and Exhibitions
    • Master Classes
    • Contact Us

Home > Blog Home >  House and Home >  Havoc in the Housing Market

Havoc in the Housing Market

Posted on October 27, 2020 by DIY Doctor

The housing market seems to be generating conflicting signals which makes it very difficult to understand what is happening for anyone who is not an expert, but simply wants to buy or sell a property.

House for sale

On one hand the papers are reporting that record prices are being reached particularly in some of the areas with tougher Covid-19 prevention restrictions.

They say demand is so great that it has been reported that up to 200,000 people might miss out on the stamp duty cut due to delays in the system, meaning people are not able to get their transaction through before the stamp duty holiday ends on 31st March 2021.

On the other hand, buyers have the smallest choice of mortgage deals since 2010. According to Moneyfacts there are just over 2,200 deals available now, down from nearly 5,000 available in October last year.

This can reduce the options for anyone who is self-employed, a contract worker or any other income bracket that doesn’t fit into the ‘vanilla’ mortgage offer. Even if homebuyers can find a mortgage deal, house prices agreed between buyers and sellers are being undercut by surveyors who are valuing the properties at much less – and it is this valuation that the mortgage company uses for its calculations.

Undoubtedly demand is being pumped up by the stamp duty holiday, and by people’s understandable desire to relocated to bigger and less urban properties as a result of the ‘work from home’ to combat coronavirus instructions from the government.

Where the restrictions are most stringent the demand seems to be highest, particularly if there is a nearby scenic area to move to, such as many parts of South Wales. Our feeling is that these are relatively short term factors, and probably will not last far beyond the stamp duty holiday and the gloomy economic predictions for next year.

In the longer term, it feels like the lenders are ‘pulling up the drawbridge’, to reducing the mortgage deals available to ensure that their own risk is limited in the case of a downturn.

The practice of “Down Valuing” property: where the surveyors are valuing property below the agreed purchase price, means that lenders will demand a larger deposit to decrease their risk. Essentially they believe that the price agreed between the buyer and seller is more than the true value of the property so this difference is not secured on the property. This suggests that most lenders think the current prices are in ‘bubble’ territory.

Conflicting signals like this have not been seen since the last financial crisis. Many people are moving for non-financial reasons, to have a better living space given our changing working environments however the long-term outlook looks potentially turbulent.


Signup for the DIY Doctor Newsletter

<< Next Post

Previous Post >>

Half of us Never Want to Move Again and Will Create the Perfect Home Ourselves
Half of us Never Want to Move Again and Will Create the Perfect Home Ourselves

Primary Sidebar

DIY Doctor deal of the week

DIY Utility Kit:

Build your own work bench!

RRP Price: £49.99

Special Price: £39.95

Get it here now

See our other deals now!

Advert

Signup for our Newsletter

Keep up to date with our DIY projects, tips and latest deals

Sign Me Up!

Follow DIY Doctor

Follow DIY Doctor on Facebook
Follow DIY Doctor on Twitter
Follow DIY Doctor on YouTube
Follow DIY Doctor on Pinterest
Follow DIY Doctor on Tumblr

Blog Categories

Footer

DIY Doctor

Site Menu

  • About Us
  • Contact Us
  • Blog
  • Media/Press
  • Community Work
  • DIY Projects
  • DIY Videos
  • Superstore
  • DIY Tips
  • DIY Suppliers
  • UK DIY Forum
  • DIY Webinars

Other Stuff

  • Advertise
  • Competitions
  • T and C’s
  • Privacy Policy
  • Cookies
  • NHIC
  • Sitemap

DIY Doctor Social Channels

Follow us on Facebook
Follow us on Twitter
Follow us on YouTube
Follow us on Pinterest
Follow us on Tumblr

DIY Doctor are members of:

© DIY Doctor Ltd 2021 All Rights Reserved