Recent reports showing the number of house purchases increasing by 1% in October has led to some suggesting the summer “drought” was over. However, this was against a 4% drop in September as lending filtered through from post Brexit sales.
What remains clear is that there continues to be unpredictability in the UK housing market. Recent surveys from the RICs point to low numbers of new sales instructions and an increase in demand, with only one outcome.
It was therefore important that the new Chancellor gave the housing market some needed positive Christmas cheer for us all to hear in his autumn statement.
£1.4bn has been pledged aimed at delivering 40,000 new affordable houses, definitely a welcome boost for many families trying to buy their first home. A £2.3bn housing infrastructure fund has been earmarked to help build 100,000 new homes in high-demand areas. On the face of it Mr Hammond is certainly trying to continue where his predecessor left off and stimulate new UK housebuilding.
But with IPT increases planned for June and projected 5% rising household costs following Brexit, prospective buyers and remortgagers will be turning to their mortgage adviser for that much needed advice on affordability
Ho, ho, ho…and the message for 2017… build, build, build.