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This is our take on what is currently happening in the mortgage market. Our views are often cited in several national publications, including; BBC News, The Times, Telegraph, City AM, FT Adviser and Daily Mail, as well as a number of key trade publications, so this should keep you ahead of the curve. If you have any questions on any of these stories, or would like further information, please do not hesitate to get in touch.
Is self-build the answer with prices high and supply constrained?
The housing market has boomed in the wake of the Covid pandemic and prices are at record highs and there is seemingly no stop to meteoric rise at present, especially with high levels of demand being sustained and supply constrained. With more of us than ever looking to purchase a “forever home”, one which ticks all the new boxes that have become pre-requisites for purchasers, including space to work from home and outdoor space, and one which is not tied to the geography of commuting as it used to, self-build could be the answer. We are seeing an increase in interest in self-build mortgages as more of us than ever consider this as an option, especially those who have struggled to find a house that they like. Self-build is not just about designing and building your dream home, but may actually be a prudent option in this high price environment with self-built homes cheaper to build than to purchase an existing home, worth on average 25-30% more on completion than they cost to build and then there are savings to be made in terms of SDLT as, if you do not own it you will only be paying this tax on the land itself.
An increasing number of purchases on hold as the market booms
As the housing market continues to boom, purchasers who could not proceed for a number of reasons are now stuck and having to put their purchase and potential move on hold. For example, we have had clients recently whose purchases have fallen through for a variety of reasons, such as Japanese Knotweed being found at a property, a structural issue found in the property, through to vendors pulling out of the sale. The issue these buyers now face is three-fold, firstly prices may have risen relatively significantly since they put a property under offer with some areas rising faster than others, potentially pricing the buyer out a similar purchase, supply is incredibly constrained and thus they may struggle to simply find a property they like and lastly with the SDLT holiday coming to an end there is now this extra cost to factor in…