Easing of lockdown restrictions getting property market moving

Caroline suggests getting sound advice before making financial decisions.

THE predicted easing of lockdown restrictions in the weeks ahead is having a positive effect on our region’s property market with increased activity being noticed, observed sector specialist Caroline Fletcher-Shaw.

Over the last few days, Caroline, a senior solicitor with Wilkin Chapman’s East Yorkshire property team, reports an increase in the number of new instructions for home sales and purchases, in a wide-ranging price bracket.

This, she said, reflected reports that the UK’s housing market had held up relatively well since March, with leading online property firms saying the majority of buyers and sellers were still planning to move when restrictions ease.

There had also been concern that lockdown would see large reductions in property values, however recent research made public by Zoopla suggests prices in our region have remained relatively static:

• Beverley: A 0.30% per cent rise in property prices since February and a 6.42% increase in the last 12 months;
• Hull: A 0.57% fall since February. A 0.7% rise in last 12 months;
• Driffield: A 0.20% increase since February. A 2.2% increase in the last 12 months;
• Grimsby: A 0.16% rise since February. A 0.92% rise in the last 12 months;
• Lincoln: A 0.42% fall since February. A 2.85 per cent rise in the last 12 months;

“For obvious reasons new instructions did slow, but there is evidence that people are starting to believe that an end to the present restrictions may be in sight and there is more positivity,” said Caroline.

She had also noticed that buyers and sellers were holding firm in the region and had accepted the need to sit tight pending the relaxation of the government lockdown restrictions.

“We predict it will be full steam ahead once people are told they can get moving again,” said Caroline.

Meanwhile, said Caroline, there would be home-owners who had no intention of moving – but had perhaps used the lockdown to plan projects and were considering releasing cash tied up in their homes to fund them. If that was the case, there were several options open to them, she explained.

Equity Release and Retirement Interest-only Mortgages (RIOs) are schemes specifically for those over the age of 55. As a member of the Equity Release Council, Caroline and her Wilkin Chapman colleagues are recognised advisers in the Equity Release legal process. This normally involves face-to-face interviews but as Council members the Wilkin Chapman team has the training and permission for video conferencing.

Meanwhile remortgaging, depending upon affordability and circumstances, was open to all, explained Caroline.

If people were considering releasing cash using any of the above options, Caroline stressed the importance of seeking sound and reliable financial advice.

“I would like to stress upon people the need to ensure they have taken the correct advice from the outset and understand such consequences. With lockdown restrictions set to ease, there could be a rush of people who want to free up cash for all sorts of things, and this could be a very timely reminder for people not to rush into things too hastily without a full understanding,” she added.