Many choose product transfers, but others prefer to bide their time to gauge falling rates
It can sometimes feel that we spend much of our lives waiting… be it waiting for a kettle to boil, for a late-running train, or for a friend who’s forever behind schedule.
Waiting isn’t always our choice, but it seems that in a market that remains changeable - if a little less volatile than a couple of years ago - many mortgage customers are choosing to wait, to see if rates drop.
Just ask Sharon Beedham, head of partner relationships at ONP Solicitors, which is part of Movera, a platform business that brings together home moving brands from across the sector.
Appraising the market, Beedham (pictured) said: “As interest rates have settled and with affordability continuing to be an influencing factor, there’s a notable preference towards product transfers amongst many customers, whilst others are holding off to gauge potential interest rate decreases,”
“Whilst the consensus across UK plc leans towards market stimulation upon interest rate reduction, the actualisation of this remains uncertain. It’s a question of wait-and-see.”
How has the property market improved?
Beedham does identify a pick up in the market in the few months which straddled the close of last year and the beginning of this one, even exceeding expectations.
“Comparing the latter half of 2023 with early 2024 it’s been a tale of two halves,” she said.
“Following a subdued December, there’s undoubtedly been greater levels of sale and purchase activity so far this year than most in the market expected or predicted. Remortgage numbers were buoyant too, as customers looked to secure one of the many competitive deals that were available earlier in the year.”
The uncertainty that has overshadowed the past couple of years could persist for the remainder of 2024, as politicians do battle for our votes – and some of them, it seems, have to up their game, if they are to secure the confidence of professionals in the sector.
“It was widely expected that there would be some level of support for the property market in the recent budget,” noted Beedham. “However, it was very much a case of ‘no news’. That said, the upcoming election year brings hope and undoubtedly future government will look to pursue policies that seek to stimulate the economy and the property market.”
READ MORE: ONP Group shakes up approach to conveyancing with new leadership
How politics could impact the industry in 2024
So what, in Beedham’s view, could MPs do better support the industry?
“Learning from the past, the ask would be to fully engage and consult with stakeholders,” she said, “including lenders, brokers, and law firms, across the market, ahead of changes.
“Engagement is crucial so stakeholders can advise and respond to these stimulants effectively. A general election year always brings with it renewed positivity and I hope to see this reflected in the industry in the next 12 months.”
Movera’s brands include Grindeys Conveyancing, LMS, Conveyancing Alliance (CAL) and Lavatech, creator of the inCase platform. Each company operates independently, supported by Movera and its platform.
Its vision is to transform the moving market, and, if interest rates reduce, the sector can certainly expect greater numbers of home moves.
“There will undoubtedly be a rise in consumer confidence, leading to an increase in home transactions and first-time buyers,” Beedham predicted. “Interest rate adjustments will also likely stimulate lenders to become more competitive with their remortgage products, resulting in an increase in customers looking to switch deals - fostering an environment of growth.”
She added: “Segments like shared ownership will also likely become more substantial.”
