As frightening as this is, we enter September this week! and I’m talking about the London rental market and house purchase completion times.

The pandemic has completely shot my sense of time to pieces, but what I am hoping is that we can start to get back to ‘normality’ from this September onwards. My eldest daughter will be back at school, and my youngest starts reception (which is very scary in its own right… how did that happen…) but what I hope for them, and for us, is that we start to move forward with our lives.

Covid will be around for some time to come but it is something we will have to learn to live with. Our team will be back in the office more regularly from next week, and it has been great getting to see AFC Wimbledon in their lovely shiny new stadium WITH fans (I say ‘great’ as roughing it out in League One is never easy, but the fans are louder than ever and our young team is really responding).

Personally, I love the buzz of being around other people. It lifts my spirits, I focus better on my work, problems get solved quickly and communication is so much easier!

I know everyone’s situation is different, and we, like most people, are adopting this new hybrid way of working, so I am sure there will be lots of trial and error as we change our daily habits but for me, you just can’t beat being around a team of people and getting that energy boost it creates.

Talking of energy boosts, it has been a lively week in the mortgage world and I have picked out some highlights below:

London Rental Market Rebounds

Data released from HomeLet last week shows that rental incomes are back on the rise in London again:

London Rental Market Rebounds

This will be welcome news to landlords and a warning sign for First Time Buyers.

As I have discussed over many weeks, the dynamic of there not being enough of the right types of homes built, coupled with very poor tax treatment on Buy To Let properties at present, will result in both property values and rental charges increasing, noticibly in the London rental market.

This is such a huge topic that deserves a more detailed write-up, but that very simple dynamic is one I think that will come to bite us in a post-Covid and post-Brexit world unless some major intervention happens.

Completion Times Push Out To 16 Weeks

Stats released from PropertyMark last week showed that the average time to completion for a new house purchase is currently 16 weeks.

That is reflective of how busy the property world has been post-lockdown the impacts that various covid restrictions have had on the market.

Thankfully, lenders seem to be speeding up as lending volumes stabilise and covid restrictions ease, but it does seem to be the legal side which takes an age now.

Aside from having a great broker on your side, which you really need at the best of times, getting the right legal team on board is so crucial. Having a proactive, responsive solicitor on your side may well be the difference between a sale happening or not. We work with some great firms which we will happily recommend, and we will always urge you to do the beauty parade as early as possible, as once you get a sale under offer now, things happen very quickly at the front end, and if you aren’t doing the right things, a hungry agent may well pick a ‘better’ buyer in your place!

Rate Corner

Money markets all up last week. As per recent updates, the outlook is much flatter than had been the case a few weeks back but we’ll keep a close eye on this to see how that classic relationship between inflation and interest rates plays out.

Therefore, our default position stands, unless you have any specific needs, we would most likely recommend a longer term fixed rate if you have a 25% + deposit, but keep it short term or flexible if less than that figure. 

In the last week:
3 Month Sterling = up by 0.001 at 0.068%
2 Year SWAP = up by 0.025% at 0.493%
5 Year SWAP = up by 0.047% to 0.717%
Bank of England Base Rate = Held at 0.10%

London Rental Market Rebounds

Best Rates

2 Year Variable from 0.99%
2 Year Fixed Rates from 0.83%
5 Year Fixed Rates from 0.96%
BTL Rates from 1.19%

The actual rate you will be offered will be dependent on your personal circumstance and deposit level. Please speak to one of our advisers so that they can guide you through this process.
Source: Twenty7Tec August 2021

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