Leather on willow, chorus of dawn to wake you from your slumber, torrential rain falling unexpectedly – these are the sounds of spring.
Historically, one could have included banging ‘For Sale’ signs into the ground as the UK property market entered seasonal life. However, given the nature of the offer, many of us would have wondered if that would be the case this year.
We are all acutely aware of what low levels of housing supply mean for our market, especially when demand is rampant. Just look at any recent house price index and you will see continued double-digit growth.
No one expected this year to follow the trajectory of 2021
While that might be welcome for existing owners, it’s just not sustainable and not desirable for a market that needs new blood and a workable level of buying activity. Our market cannot live on mortgages and product transfers alone.
Ray of light
There has recently been a supply-driven ray of light via the Royal Institution of Chartered Surveyors (Rics) residential market survey, which revealed a much-needed increase in the number of new homes coming up for sale in March .
Additionally, 8% of surveyors surveyed reported more properties coming on the market – the first time there has been such a positive indicator in the past 12 months, and hopefully a sign of things to come. come because, as an industry, we definitely need more property availability.
That said, as the Rics survey also reports, the number of properties on estate agents’ books remains near historic lows and inquiries from new buyers have increased by 9%. So you can see that although there is a close match, the demand still exceeds the available supply.
Our market cannot live on remortgage and product transfer
However, there is other positive news. The sales forecast for the next three months remains positive at over 16%, although you could credibly ask, “Why wouldn’t they?” while buying demand is still extremely strong.
Overall, any improvement in the supply of properties for sale is good news, especially given the broader economic issues related to the rising cost of living which is fueling sharp increases in inflation and what this may mean for household income.
You might have thought that such pressures would mean potential home sellers were less likely to come to the market during a period of flux. But hopefully that is not the case and there will be greater supply, rather than just the bare bones of those who need to sell due to death, divorce and distress.
As always, it’s about making the most of opportunities and guiding all customers through the process.
For advisors, there is continued strength and resilience within the mortgage and product transfer market which will drive levels of activity. But more buying activity could make all the difference in revenue and profitability; especially after a year – 2021 – when the buy market was so phenomenally strong.
Nobody expected this year to follow the same trajectory, but more supply will mean more sales and as advisors, if you can get a fair share of this business, you will also have significant business opportunities. auxiliaries, whether in the form of protection, general insurance, conveyancing, legal or other services.
There is continued strength and resilience within the mortgage and product transfer market
As always, it’s about making the most of these opportunities and guiding all customers through the process. This will not only ensure that they get the mortgage financing they need, but will also give them the certainty and confidence that they won’t go elsewhere for other services.
As a result, they will come back to you whenever they need reliable advice, year after year.
Mark Snape is Managing Director of Broker Conveyancing
This article appeared in the May issue of MS.
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