Summer House Sales: Lending Increase A Boost For Sellers?
Posted on 21st August 2018 at 12:29
While homeowners looking to sell their property need to focus on making their home as appealing as possible, it makes sense to review the market. The fate of a vendor is linked closely to buyers, and therefore, homeowners should have an eye on the mortgage market and how many people are looking to buy homes.
At Strawberry Lettings and Sales, we take an interest in all activities in the property market, which allows you to make fully informed decisions with respect to what you do next.
When it comes to mortgage applications, it is always positive to see an increase in the number of approvals. Figures provided by UK Finance suggests that the year on year figures from May of 2018 indicate something to be pleased about. In May of 2018, there was a total of 32,200 mortgages approved for first-time buyers and this represents an 8.1% increase in the number of first-time mortgages approved for first-time buyers in May of 2017.
Current homeowners are also looking to move
Of course, it is not just first-time buyers who can purchase property, there are also many people moving home. In May of 2018, there was a total of 31,000 mortgages approved for homeowners looking to buy new homes and this was an increase of 4.4% on the May of 2017 figures. These two groups meant that there were around 63,000 approved mortgages for May and that isn’t taking into consideration re-mortgage deals or even the buy to let market.
Not every approved mortgage leads to sale so there is a need to not get carried away with this information. However, any positive sign of intent in the property market should be viewed positively and with more mortgages being approved, hopefully more homeowners will think it is worthwhile selling their home.
An increase in prospective buyers is positive news for vendors
The buy to let market has fallen of late, and this brings good and unwelcome news for homeowners looking to sell. If you are keen to sell, a landlord looking to increase their rental portfolio is just as valid a buyer as someone looking to purchase their first home, so the fall in buy to let mortgage approvals is not great news. However, if this convinces more tenants to move into the property market, it could lead to more prospective buyers, so there may be long-term benefits from the status of the buy to let market.
It is positive to know that there are more prospective buyers in the market, but this doesn’t necessarily mean things are easier for homeowners looking to sell their property. This is still a highly competitive marketplace and vendors need to ensure that their homes are presented in the best possible manner. This is something that Strawberry Lettings and Sales can assist with, so if you are looking to impress prospective buyers, get in touch and we will help you as best as we can.
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