JANUARY 2019 PRESS ROUND UP
Meanwhile, the number of mortgage approvals fell to a seven-month low as Brexit concerns rattled the housing market, according to the Bank of England. Jeremy Leaf told City AM: ‘The mortgage approval figures, though a little historic, do nevertheless demonstrate some continuing resilience in the market, even at a time of huge political turmoil. However, we remain stuck in a price-sensitive, needs-driven environment, especially at this time of year, showing again a larger correction is unlikely while prices are supported by very low mortgage and unemployment rates, as well as improving affordability and stock shortages.’
A growing number of first-time buyers are shrugging off uncertainty surrounding Brexit and getting on the property ladder, according to UK Finance, which reported that 36,200 new first-time buyer mortgages completed in November. Jeremy Leaf told This is Money: ‘First-time buyers are dipping their toes in the water, encouraged by improving affordability, reduced competition for smaller properties from tax and regulation-hit buy-to-let investors, some attractive mortgage deals and more stable employment prospects. There is much talk about Brexit but we find that it remains a largely London/southeast preoccupation among homebuyers.’
The big question is: what will happen to property prices this year? Jeremy Leaf told The Sun that they had seen more viewings than expected so far this year and stronger house price valuations. ‘We recorded better-than-expected viewings and valuations in early January, despite the Brexit uncertainty. On the one hand, the risk of uncertainty for the property market increases after yesterday’s vote [on Brexit] but on the other, it helps to concentrate minds on all sides as the threat of a ‘no deal’ rises, which was reflected in Sterling’s strengthening immediately after the result was announced.’