“The question will be will the market soften off a little bit? But we’re still seeing strong demand at the moment and clearly people coming to market now are not going to be making an end of June completion deadline,” he added.
In a video panel debate in association with Skipton Building Society for Intermediaries, Hollingworth said greater clarity about returning to work, without the same commuting pressures and potentially moving further afield will be some of the factors coming into play in the second-half.
“We have to expect a softening from where we’ve been. The stamp duty holiday played into the intense market activity currently, but nonetheless people are refocused on where they live, having more space and I don’t see that disappearing very rapidly so I’m perhaps a little more optimistic,” he added.
Jen Lloyd, mortgage product lead, Skipton Building Society for Intermediaries, said: “What’s interesting is that if we think back to this time last year, May, the Bank of England were talking about potential falls of 16 per cent in house prices. That hasn’t happened and in fact, quite the opposite.
She added: “The question mark for me is over how sustainable house price growth of 10 per cent year-on-year is at this level. Combined with the fact wages are going up three per cent year-on-year and have been for 20 years.”
Hollingworth said: “Some moderation there wouldn’t actually be a bad thing and like you say, that supply can’t meet the same level of demand – it pushes prices higher. But I don’t see the end of stamp duty being the end of this new-found demand for housing.”
John Scrivens, regional manager intermediary relationships, Skipton Building Society for Intermediaries said the rise in deliberate landlords is evident as that gap between rental and mortgage costs continues to grow.
Later, he said: “As the pandemic progresses this year, people are still not likely to be travelling as much, outside of the UK. There is a realisation that Covid isn’t going away. Estate agents up and down the country tell me there is huge demand in new enquiries but it’s the stock that’s the issue.”
He added: “It will continue to be an interesting year in H2.”
Watch the panel debate by clicking the screen below.
