According to a report by Finder, UK house sales are forecasted to fall by 40% from 1.18 million in 2019 to just 734,000 in 2020.
This is largely due to the effects of COVID-19. Being in lockdown has meant potential buyers have been unable to view properties and mortgages have become much more difficult to get as many offices and banks are working with limited numbers of staff.
These reasons in combination with the lack of interest in selling or buying amid a global pandemic when lots of people are either being paid less or face an uncertain future, the house pricing market has taken a hit in the UK.
The report also found that in 2019, the average age of a first-time buyer is 32. This has increased since 2018, when the average first-time buyer was 30.
More first-time buyers took out mortgages in 2019 than any time over the last decade though has remained fairly consistent, showing a total of 356,800 first-time buyer mortgages were completed last year, up 1% from 2018 and the highest number since 2006.
In 2019, over half of the houses purchased with a loan were first-time buyers, happening for the first time in 10 years.
The South East had the most first-time buyers with over 68,000. That’s 57,000 more than in Northern Ireland, where just 11,000 people bought their first home.
In December 2019, a total of 58,890 new mortgages were taken out. Remortgaging with additional borrowing was up by 5.9% year-on-year.
At the end of Q1 2020, the value of all residential mortgage loans was £1,509 billion, 3.9% higher than 2019 Q1. The value of lending to be yet agreed was 6.1% higher than last year at £67.6 billion.
Stephen Jones, UK Finance CEO, said:
“Mortgage lenders are committed to supporting their mortgage customers through these difficult times and the final guidance from the regulator will enable both firms and borrowers to plan ahead.
For those customers who are nearing the end of their three-month payment holiday, providers are offering them help and flexibility to choose the next steps which best suit their needs.
It will always be in the borrower’s best interests to pay their mortgage if they are able as this will reduce the level of their repayments in the long run but for those customers who are struggling, help is available.
The extension of the payment holiday scheme until 31 October 2020 for customers yet to take to one will provide much-needed breathing space for those who need it, while the continued moratorium on involuntary repossession will ensure no homeowner loses their home because of the impact of COVID-19 on their finances.
A payment holiday may not be the right choice for everyone, and borrowers should only apply if they need one. Any borrower who is concerned about their financial situation should check with their lender as early as possible, with providers’ websites giving the latest information on the support available.”
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