Here are just some of the conversations conveyancers, lenders and other property professionals have been having at our tmpropertyhub events in Liverpool across 2018…
1. “Second-time buyers are the ones really disrupting the housing market”
“I think it’s the people on their second moves that pose the real challenge to the housing market. They want to move up to get into the next location, but the differential cost is sometimes prohibitive.
Many of them are at a time in life where they’ve got children and high outgoings, which makes it harder to move up the ladder. For the most part they don’t get any assistance – but if they don’t move, the first-time buyers can’t move either.”
2. “Help to Buy is being used by a lot of wealthy people – not those it was really intended for”
“We’ve had some clients with exceptionally wealthy parents who are still going down the Help to Buy scheme route. I’ve also seen wealthy clients buying up new builds, not because they need to, but because they get to take advantage of Help to Buy, as well as Help to Buy ISAs to a certain extent.
I do find myself thinking that it really wasn’t designed for them – yet they are the ones able to take advantage of it.”
3. “Landlords are selling up due to tax and regulation changes – and adding to the housing supply”
“We’re seeing a lot of landlords selling up due to tax changes and new regulation coming in. It’s not for the amateur anymore. It’s just too expensive, and you can’t cover costs – so they are getting out.
There are some positives to this. Now’s probably the right time for Landlords to get out, as they’ve made their capital return, so they aren’t losing out. This is also adding to the housing supply and helping the property market.”
4. “The rise of ‘The bank of mum and dad’ is forcing conveyancers to adapt their process to manage the extra work”
“The bank of mum and dad is not a new phenomenon, but in terms of volumes right now, it’s almost one in two.
We can’t just let the mortgage offer expire because of the extra work either. We just have to adapt our processes and our workforce, so that we can deal with the actual work.
We don’t charge for it. As far as we’re concerned, you just have to make sure you service the needs of the clients.”
5. “‘The bank of mum and dad’ is supporting second-time movers too”
“First-time buyers are getting a lot of help right now – from the government with Help to Buy ISAs, as well as their parents with ‘the bank of mum and dad’.
However, we do see second-time buyers also making use of ‘the bank of mum and dad’. Probably not as many, but it does happen. It depends on whether they’ve generated any equity their first house.”
Are you noticing these trends in your local area?
Want to join the next conversation in Liverpool? Our autumn tmpropertyhub is taking place on 10th October.
Not based in Liverpool? Don’t worry! Our tmpropertyhub events are also taking place across a further 10 locations this autumn – from Leeds to Southampton.
Source : Liverpool Property Hub : 16th May 2018 : Attended by property professionals – including conveyancers and lenders.