Finance

During a speech by The Queen on the 40th Anniversary of her succession to the throne, Her Majesty referred to recent events as part of an ‘Annus Horribilis’ (Latin for a disastrous or unfortunate year). On the 19th December 2020, The Prime Minister Boris Johnson announced tougher restrictions for large parts of London & South East of England with new ‘Tier 4’ restrictions – Christmas was cancelled! It was a bitter pill to swallow for a Country still reeling from Travel Restrictions, Lockdowns and Prince Harry & Meghan Markle quitting the Royal Family. As the clock struck 12 on December 31st 2020, I think it is fair to 2021 was being approached with a fair degree of uncertainty, apprehension & trepidation – with good reason given what we all had to endure for the previous twelve months!

Who has heard the saying ‘it is always darkest before the dawn’? Looking back on the period January – November 2021, specifically focusing on the UK Property & Mortgage Market, I would argue that no truer statement has been spoken! According to the Office for National Statistics, UK House Prices have increased by 11.8% over the year to September 2021 and the average UK house price stands at a record high of £270,000.

"UK House Prices have increased by 11.8% over the year to September 2021 and the average UK house price stands at a record high of £270,000"

Clearly the property market has been buoyed by the UK Governments ‘incentive’ with respect to Stamp Duty Land Tax but overall the ‘conditions’ remain favourable i.e. ultra-low rates of interest, punchy loan-to-income multiples (5.5x), more flexible criteria from banks & buildings societies and most importantly a strong willingness to offer finance to homeowners up and down the UK.

Nobody could argue how resilient the Property Market has remained despite challenges it has faced over the period of the Global Pandemic.

What reasons to we have to be cheerful as we move into 2022? Whilst it is true that some of the outrageously cheap five year fixed-rate products at lower LTV’s have been removed from the marketplace in recent weeks, it is still possible to secure finance at incredibly low %’s – it is also important to note that rates of interest at the higher LTV’s (75% +) have barely moved at all – despite what you might read in the newspapers!

Moreover, I would expect property prices in bigger cities like London to hold-up well as the Country continues to reopen off the back of a hugely successful vaccine rollout – walking around the West End earlier this week it definitely feels like the buzz has returned to the capital! Finally, who could forget the extra Bank Holiday that will be awarded to the UK population mark The Queen’s Platinum Jubilee in 2022? Whilst Her Majesty still might not consider 2021 to be ‘Annus Mirabilis’ it has definitely not all been doom & gloom in the property sector.

To see the rest of our Q1/21 Magazine, click the link below to view the articles online: https://issuu.com/briklondon/docs/brik_magazine_-_2021_-_q4_-_issuu