UK city sees boom in property interest – could celebrities be driving up business?
Rising interest rates are reshaping the mortgage landscape, forcing both buyers and lenders to rethink their strategies. In Exeter, where average property prices reached £346,000 as of September 2024 - a marked rise from £320,000 the previous year - this shift is especially pronounced. And could this be driven, in part, by a little football fandom from some big-name celebrities?
Michael Tilston (pictured below), director and mortgage and protection adviser at The Mortgage Quarter, explained how the company has invested in a sponsorship of local football club Exeter City.
“We love football in the office,” said Tilston. “So we definitely weren’t going to say ‘no’ when given the opportunity to sponsor our local team. And it’s been absolutely wonderful. We've had lots of messages from existing clients and people who may not have come to us as of yet. They say: ‘Oh, I saw your sign down at Exeter City Football Club – it looks fantastic, by the way. When can I come in and see yourselves to sort my mortgage out?’
“It’s funny to think of how many people actually support Exeter City Football Club – Michael Jackson and Jim Carrey even having visited St James Park – so obviously we have a wider reach than we thought, which is excellent news for us.”
‘People might be able to borrow £400,000, but the monthly payments aren’t affordable’
Still there are changes that are driving caution in the market and fundamentally altering buyer behaviour.
"Going back only a couple of years, during the after-effects of COVID-19, people were astonished at how affordable borrowing was," Tilston told Mortgage Introducer. "Rates had a one or two in front of them - some even started with a zero. It was quite incredible how cheap it was to borrow money but that was never sustainable."
Fast forward to today, and the story is starkly different. With rates now hovering around 4–5% for many borrowers, affordability has taken a hit. And, even as lenders raise borrowing caps to six times joint income in some cases, buyers are being more cautious.
“Now, people might be able to borrow £400,000, but the monthly payments aren’t affordable anymore for some as it may not fit their lifestyle” added Tilston. “Even when they can borrow the maximum, they don’t want to because it’s not financially viable.”
A lot of lenders have actually increased their income multiples – however, because the rates are higher those monthly payments could be too much for some people. And, this shift towards financial prudence is actually redefining the dynamics of the housing market.
"We’re seeing a lot more conservatism," Tilston told Mortgage Introducer. "People are no longer maxing out their borrowing potential. Instead, they’re choosing homes that align with their budgets and avoiding unnecessary strain."
The market’s complexity has also increased. While products for first-time buyers remain straightforward, options for landlords and limited companies have grown more intricate, with some financial strains prompting landlords to reconsider their investments. According to GOV.UK, 31% of landlords plan to reduce their portfolios by 2026, with 16% adding they want to sell all properties. This marks an increase from 22% in 2021 and 16% in 2018.
"Some lenders are pushing income multiples to six times joint earnings, which was unheard of when I started over 10 years ago," added Tilston.
Educating buyers and building resilience
For Tilston and his team, the focus is on preparation and education.
"We talk to clients a year or two before they’re ready to buy," he told Mortgage Introducer. "Educating people about what’s achievable is crucial. Educating the estate agents we work with is important too - just giving them a base level knowledge around mortgages, what first-time buyers can potentially get. And again, they can support a wider market of first-time buyers, and then hopefully refer them to us.”
However, it was another football-related celebrity that left Tilston and his team slightly disappointed – though still in high spirits.
“We’re allowed a couple of tickets a year as part of our sponsorship, but the one game we couldn’t get tickets for was against Wrexham," he joked. "Of course, since Ryan Reynolds bought the team, those tickets were gone instantly. However, they have said we can come into the box and enjoy a nice meal before the football starts.”
