Brokers offer their insights
The residential market has encountered a rocky road over the last few years, with challenges ranging from COVID, to spiking inflation and sky-high interest rates.
So, what are the current trends in the residential space and how buoyant is the market at present?
What are the current residential market trends?
Ken James (pictured left), director at Contractor Mortgage Services, said in the challenging 2023 mortgage market, brokers have displayed commendable resilience, with a focus on first-time buyers, product transfers, and remortgage cases.
“Notably, Nationwide has stood out as a reliable lender, facilitating higher lending through its Helping Hand product,” he said.
James said the consistent flow of first-time buyer business has played a pivotal role in sustaining smaller firms, and the importance of product transfer transactions has been a lifeline, preventing the potential disappearance of some enterprises.
As we approach the end of the year, he added that the remortgage market has been gathering momentum.
Clients, James said, are increasingly drawn to the growing disparity between offerings from existing lenders and those available elsewhere.
“Looking ahead to 2024, there is a sense of optimism for sustained growth in the first-time buyer market,” James said.
The potential for rates dipping below the low 4% range, he added, could act as a catalyst, further stimulating the market and encouraging both sellers and home movers.
“It is evident that adaptability and strategic positioning will continue to be crucial for firms navigating the dynamic currents of the mortgage sector,” James said.
Demand is out there
Anil Mistry (pictured right), director and mortgage broker at RNR Mortgage Solutions, said as a brokerage rooted in Leicester, his role in recent times has focused on catering to increased demand.
“The prevailing dynamics across various sectors of Leicester’s property landscape signal a distinctive buoyancy,” he said.
Feedback collected from clients, Mistry said, highlights significant demand, with an estimated 10 to 15 prospective buyers expressing substantial interest in each property they explore. This heightened demand, particularly evident in specific pockets of Leicester, Mistry said, has sparked a competitive pricing environment.
A telling illustration of this competitiveness, he added, is represented in the six-month journey of a client striving to secure their ideal home.
“The prolonged duration of the acquisition can be directly attributed to intense competition, resulting in a pricing war that eventually culminates in the acceptance of an offer,” he said.
This narrative, Mistry said, serves as a poignant example of the current market, where buyers navigate a landscape defined by robust competition and are willing to engage in protracted negotiations to secure their desired property. He believes buyers are aligning with prevailing interest rate norms, actively propelling themselves towards achieving their homeownership goals.
Looking ahead, Mistry said adaptability and strategic insight will likely remain crucial for success in this evolving environment, ensuring effective responses to the ever-shifting currents of the property market.
What are the current trends in the residential market at present and what do you expect moving into 2024? Let us know in the comment section below.