Confidence is on the rise, and we should harness it. The property market has faced a tough few years, and many investors will want to put the worst of them behind us. Fortunately, with a general election looming, there’s opportunity to start afresh.
And looking at the current state of the market, now may be a good time to get back on any expansion plans that were put on hold. Demand is there from borrowers, investors, and homeowners.
Take, for example, first-time buyers. A group constantly framed as struggling against impossibly high prices, and a tough competitive scene. Yet, the actual data tells a different story. According to the latest Twenty7tec monthly mortgage market report, searches for first-time buyer options accounted for 18.3% of queries on the platform in May. Rising from 15.4% in April.
What’s more, loan applications from first-time buyers have grown by 33% so far this year. Analysis from the Yorkshire Building Society and CACI, found that first-time buyers now make up a higher proportion of the home purchase market than at any time since 2016.
We’re seeing similar rebounds across the market too. The most recent Housing Insight report from Propertymark found that the average number of new prospective buyers registering per estate agency branch rose from 76 in March, to 88 in April. Housing supply, sales instructions, agreed transactions – they’re all on the up.
This news isn’t all that surprising. Despite the naysayers, property often proves to be a popular, fruitful investment option. Even in challenging economic climates, such as the one borrowers have been dealing with since the 2022 mini Budget.
What is exciting, is seeing the tools that borrowers are using to engage with the market. Turns out, the specialist lending industry may have an increasingly important role to play.
Bridging loan books hit £8.1bn in the first quarter of 2024. A record high, according to the Association of Short Term Lenders (ASTL). Also, new business pipelines in this corner of the market are strong, with applications rising by 17.5% between the end of 2023, and the opening months of 2024.
The question remains, how will this funding be utilised over the rest of the year? We addressed that question in our independent Q1 research report, which covered potential property investment trends for 2024.
Our results showed that just over half (53%) of property investors said they had confidence in the outlook of their portfolios. And when questioned on what type of assets were most desirable to them for the coming months – BTL properties, student accommodation, and residential property (not to be let) all proved tempting.
Specialist lenders are primed to help with these assets, and more. As confidence continues to rise among borrowers, we will be there to support new, dynamic investment strategies.