According to IMLA the UK real estate and mortgage market will continue to be “solid”.
Despite the end of the Stamp Duty Holiday, IMLA believes that the market will not suffer a downturn.
The Intermediary Mortgage Lenders Association (IMLA) released its report on the impact of Covid on the UK housing and mortgage market today, one year later. This latest report points to the continued strength of the housing market, despite the challenges presented by the pandemic, and predicts that gross home loans will reach £ 285 billion this year.
In January, IMLA’s New Normal report predicted an increase in gross home loans to £ 283bn in 2021, with a rapid return to household spending as the Covid -19 lockdown restrictions eased. However, the latest IMLA report has revised this figure, increasing it to £ 285 billion, the highest level of home loans since 2007.
The predictions follow data showing a rebound in mortgage credit, spurred by the housing market’s strength. During the first five months of 2021, home purchase loans were not only 87% higher than the same period of the previous year but 51% in the same period of 2019. And although remortgage activity has been lower, the number of product transfers has risen to record levels.
Forecasts for next year are still positive.
However, despite the high levels of market activity brought on by the Stamp Duty holiday, IMLA has also revised its forecast for gross loans in 2022, slightly reducing it from £ 286bn to £ 280bn.
The report, which makes a series of predictions about the market over the next year, forecasts that prices will be broadly flat in the second half of 2021 but will rise 1.6 percent in 2022. House prices have risen due to the Holiday Stamp, but the report predicts that a more subdued image can be expected after the holiday completely ends in September.
Kate Davies, the IMLA CEO, said: “After a difficult period in the wake of the coronavirus crisis, it is very encouraging to see another positive prediction for the remainder of 2021. Our results forecast that 2021 is going to be the highest. level of home loans since 2007 and, with a combination of government support helping to underpin new purchases and an excellent year for product maturities, we expect this high demand to continue.”
“However, with the Stamp Duty holiday coming to an end soon, and the Aid to Buy scheme due to conclude in 2023, the RE is still in need of a consistent and long-term approach to the Government’s housing strategy that encompasses the public as well as the private sectors and provides a market that will meet Britain’s housing needs for decades to come.”
HICH LTD has revolutionized the property survey market since day one! Are you looking for a roof, structural, or bespoke survey? Request it here!
Follow us on our social networks to keep up to date with the most relevant property market news, tips for being a responsible homeowner, and much more!
Twitter: @HichLTD
Facebook: HICH-LTD
We are recruiting Freelance Surveyors and Building Inspectors to carry out Roof & Property Condition Inspections. You will be required to inspect and assess the full external and internal condition of various property types, new and old, including Domestic and Commercial. The position is Home-based, covering all postcode areas throughout the U.K.
Fees range from between £150-£195 per inspection, previous experience in building surveying and or buildings insurance claim surveying with a proven track record or property inspection experience essential.
If you or someone you know meets these requirements and wants to be part of the team of the best surveying company in the UK, please get in touch with us at hichinfo@aol.co.uk.
