Bright spots in difficult times
- Among many things lockdown stopped was spending. UK households now have more money saved than at any point since 2016. And what do they want to spend it on? Their homes, apparently.
Kingfisher, owner of DIY chains B&Q and Screwfix saw sales surge in May, June and July. The Chief Economist of the Bank of England thinks that the UK recover from this horrible downturn is progressing “sooner and faster” than expected.
- And many of those who can’t improve are looking to move. Property website Rightmove recorded its busiest ever day at the end of May. It also conducted a survey suggesting that of people who were not planning to move house at the start of 2020, 28% are now planning to do just that.
Mortgage lending took a hit during lockdown, but lenders are now back and offering 85% and 90% loan to value mortgages again. The combination of available finance, the stamp duty holiday and historically low mortgage rates might just encourage people to take the plunge.
After all, if you are being asked to stay at home more than ever, you want that home to be somewhere you really want to be.
- The Green Homes Grant scheme will see households able to claim a voucher for £5,000 to use towards energy efficiency alterations to their home — or £10,000 for poorer households. The scheme should be open for claims from September 2020.
In this unprecedented year, none of us know what is around the corner — but perhaps it is worth considering the possibility that a recovery may also be unprecedented.
Keep an eye on the H+H website www.hhcelcon.co.uk for more topical views on housebuilding.