At the end of last year, remortgaging started to grow. Months prior, the demand for a remortgage was less than demand for new mortgages from new home buyers and home movers. In the lending market, the data revealed that homeowners were choosing new dwellings rather than staying put. The reasoning was that the pandemic and lockdowns were leaving a homeowner lacking in the space and opportunity to make their current home also a school, a work place, a fitness area, an entertainment area, and the spot where the family would eat the majority of their meals.

Hopeful home buyers have been motivated to take action inside the housing market due to the savings offered by the offered Stamp Duty Holiday. It was due at the close of March, but the announcement came last week that it would be extended for another three months. The tax is suspended for properties up to £500,000.

Remortgaging homeowners are taking advantage of the very low interest rates and are choosing to take out long term fixed rate deals. Doing so locks in the low interest rate for the term of the remortgage and assures that the savings will last despite any threats of rising rates during the length of the deal. According to LMS, more than one half of homeowners that remortgaged in January chose a five year fixed rate remortgage.

Experts might not have expected that the UK housing market would be as resilient as it has proved to be during the pandemic, but the latest boost in growth was not a surprise. It was expected that the upcoming end to the stamp duty holiday would see a rush of home buyers trying to beat the 31 March deadline. According to a recent report from Nationwide, property buyers created a new record high average house price.

In a trend that surprised many experts, homeowners began to move home during a pandemic. Lockdowns and restricted socializing due to the coronavirus caused individuals and families to take a hard look at where they were spending the majority of their time. It appeared, due to polls and studies, that what had been sufficient did not fill the new needs required of their home dwelling. Some needed a space for children to study and play, those working from home needed an area to organize, work, and meet online in private. Some yearned for a bigger kitchen area, a space to enjoy online streaming entertainment or family games, area for fitness, and a private and safe place to enjoy the outdoors.

The housing market has been surprising experts since the beginning of Brexit. No one would have thought that even in a global pandemic it would be resilient. Yet it has. It could be due to the low interest rates available from lenders and brokers. It could be the stamp duty holiday that has offered tax savings for home buyers. It could also be that the lockdowns and pandemic itself made people view their dwellings as inadequate for the new lifestyle forced upon individuals and families. The reasons are varied, and the result is a busy housing market.