Like the stock market, the housing market peaks and falls on a regular basis, but the reason for its variation is often influenced by the state of the economy, interest rates, people’s general incomes and fluctuations in the size of the population.
Not only that but the status of the housing market and its success is attributed to property demand and the number of free houses available.
At Velocity Bridging, we love to see a booming property market and when UK house prices are on the rise, it’s because of a recent surge in activity.
The housing market’s current state
We were all of the notions that along with the rest of the economy, the housing market would also drop because of COVID-19, however, partly influenced by the stamp duty tax relief, the property market has been at its strongest for a decade with buyers piling in at a record pace.
The surge in housing enquiries and purchases has also affected property finance – when the interest in houses increases, so does the funding required for it.
Demand for bridging loans for house purchases
The housing market boom has meant we have seen commotion inactivity for bridging finance.
The increase in housing transactions has helped garner strong demand in the bridging market, with record numbers of applications in mid-late 2020, according to the latest ASTL figures.
The rise in bridging finance applications reflects the positive potential bridging finance has to offer customers during these unprecedented times.
And the interest in bridging loans is likely to continue due to the latest positive news about the vaccine and the Government’s roadmap to regularity.
With life expected to return to normal soon, it means the economy will likely see growth and with it, the housing market and bridging loan enquiries.
Do you have a bridging loan enquiry? Discuss your bridging loan options with Velocity Bridging on 01704 339588 or info@velocitybridging.com so you can get a tailor-made loan directly for your purposes.