News: September House Price Spike

House prices in September 2020 have had the steepest annual rise since June of 2016, according to the latest newly released index from Halifax.

What does the data say?

The Halifax managing director Russell Galley recently spoke on the data and what it means for the housing market. He argues that the growth since the end of the national lockdown has kept steady and continued to be strong.  

 A general breakdown of the data includes:

• House prices have gone up by 7.3%
• The average UK house price climbed to £249,870
• Mortgage applications have also risen – to a staggering 12 year high
• Since the end of lockdown, the monthly growth of house prices has continued keeping fairly steady 1.6%

How long will this last?

This is likely a finite occurrence, as a result of a finite incident.

The national lockdown which hit the UK back in the spring meant that the period of the year which is usually the busiest in the housing market was completely stopped in it’s tracks. The demand pent up during that time has meant that since the end of lockdown, the housing market has taken off.

This pent-up demand has also had the added catalyst of the Stamp Duty Land Tax (SDLT) holiday which put a clock on many people’s moving plans – it only lasts until March 31^st, 2021.

So, it’s clear to see why the housing market has reacted the way it has – and why house prices have risen as a result.

But - will it last?

Well, as far as Mr Galley is concerned, this is a bubble that is going to burst.

So, what does this mean?

Well, if means that if you’ve got your eye on upsizing and are looking to sell your property, it’s very possible that you’ll be able to sell your property at a good price – and be able to buy your next property without having to pay the often-painful SDLT.

But it also means that the competition will be fierce; with house prices being driven up due to demand, that demand translates to lots of people looking to purchase new properties just like yourself.

With so many people looking to buy, it’s likely if you’ve found your dream property, you won’t be the only bidder.

So how do you beat the competition?

If you’re in the lucky position of having a high level of equity in your home, then you’ll can put more into your deposit of your next home. This puts you in a very attractive position when it comes to getting a new mortgage on your dream property.

But mortgages take time – and are, at the moment, even slower processes – thanks to the impact of Covid-19.

A better way to beat the competition might be to secure short-term fast finance, such as bridging finance.

What is bridging finance?

Bridging loans are a specialist kind of short term loan designed solely to provide a temporary cash flow solution which allows you to "bridge the gap’ before additional permanent finance becomes available. Like a mortgage, a bridging loan is secured against your property. 

We specialize in bridging loans – helping clients like you to secure short-term fast finance to be able to beat the competition. Bridging finance is much faster than traditional forms of borrowing like mortgages – these essentially put you in the same position as a cash buyer, which can bump you to the front of the bidding queue.

Read how we’ve helped others use bridging to secure their dream home:

• Bridge to Buy While Waiting For Home to Sell
• Fast Bridging Loan To Enable Purchase of Downsized Retirement Home
• Bridging Loan to Help Fund Dream Home in Kent

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