Hopeful Home Buyers Optimistic About Purchasing Property Despite Pandemic

Hopeful Home Buyers Optimistic About Purchasing Property Despite Pandemic

Following the March Budget, consumer confidence has risen according to the latest report from the Building Societies Association (BSA). Out of over 2,000 adults polled for the survey, 37% reported that it is a good time to buy property, which is up from the 27% reported in December. The extension of the stamp duty holiday from the original deadline of 31 March to the end of June is expected to keep hopeful home buyers interested in the housing market. The deadline extension was announced during the March Budget.

Mortgage lending is expected to continue to be in strong demand as it has been the past months due to the stamp duty extension and continued low interest rates. Also, there is usually a spring season boost as sellers bring new properties to the housing market. The next few months could prove once more the UK housing market is more resilient than experts ever expected while in the midst of a pandemic.

Paul Broadhead, head of mortgage and housing policy at the BSA, remarked, “It’s great to see public confidence in the housing market returning.

“The vaccination rollout and the publication of the government roadmap for easing Covid-19 restrictions are likely to have impacted this, but it’s also clear that some measures announced in the Budget, including the government-backed mortgage guarantee for those with small deposits and the stamp duty holiday extension, have been significant contributors to the growing optimism.”

Remortgage lending is also expected to be in strong demand. Experts have warned that allowing their mortgage term to end and accept being moved to the lender’s standard variable rate (SVR) could result in paying perhaps double the interest rate they were used to paying. However, a remortgage could save them on average £200 per month.

Consumer confidence is indeed growing and with the optimism toward the spring season housing market, reports should continue to show the housing market doing well and surprising in its resilience during the pandemic.

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