Bridging Finance News:- Mortgages granted for home buying stood at 42,653 in June – a 2.9 per cent annual increase, according to UK Finance, figures.
The number was above the 38,000-40,000 range that has largely held from the beginning of 2018 through to early 2019.
Economic forecasters, the EY ITEM Club, said June’s figures were just below the 26-month high seen in April of 42,792. The Club’s chief economic advisor, Howard Archer, said the housing market had received some support from avoiding a disruptive Brexit at the end of March.
“A shortage of houses on the market will also likely offer some support to prices, “said Archer.
He pointed to the latest Royal Institution of Chartered Surveyors’ residential market survey which showed new instructions up modestly in June, following an 11-month decline.
“Consequently, average stock levels on estate agents’ books in June remained close to the lowest level in the survey’s history.
“Even if ultimately successful, the government’s recent – and ongoing – initiatives to boost house building will take time to have a significant effect so are unlikely to influence house prices in the near term at least,” he said.
Bridging Finance by HZA
Brokers Hank Zarihs Associates said there could be an uptick in sales of new developments over the next few months. The brokerage added demand for short-term bridging finance to cope with possible volatilities in the market over the next few months was likely to be strong.
House sales and prices unpredictable for the end of 2019
The EY ITEM Club predicts house prices will rise by around 1.5 per cent over 2019 with a 2 per cent increase over 2020 if the UK leaves the EU with a deal. But if the country leaves without one prices are predicted to fall by 5 per cent.
Bookmakers Betfair Exchange are predicting a 29 per cent chance of the UK leaving the EU without a deal. They are also forecasting a 29 per cent likelihood that country leaves the EU by October 31st.
Dilpreet Bhagrath, mortgage expert at online broker Trussel, said house sales over the next few months were likely to be unpredictable.
“With Boris Johnson moving into 10 Downing Street today, it will be interesting to see whether people choose to stay put or move ahead of a potential no-deal Brexit later this year.”
Sales could be boosted if the new prime minister exempts UK house sales under £500,000 from stamp duty. Although experts say this could lead to under valuation of homes close to the half million price tag.