“So looking forward, where it’s going to go? Well, I think I think the froth has to come off, you know. The lenders I’m speaking to now, the consensus is around £300bn for 2022.”
He added there was a ‘national reassessment of where we’re living’ which included a drive to release equity, remortgage, borrow for home improvements and with record low interest rates there would definitely continue to be a purchase market next year.
He said the Bank of England’s rate announcement tomorrow looked likely to be a rise but the market is already shifting.
Last Monday there were 82 deals below one per cent and as of this Monday, there were only twenty two, he said.
“But we must understand that rates are at record lows and the majority of people are on fixed rates,” he added.
“All in all, I’m really positive going forward. There are going to be some speed bumps, but there are no cliff edges. And if you think about how the big banks are pumping money into mortgages to keep those rates really, really low, they’re only doing that because they’ve got confidence, one in the housing market, and two in the mortgage market. If you follow the money, this is always a good sign.”
Meanwhile, on fears lack of property stock could stall the housing market he said ‘we probably need to debunk that myth’.
He said its true that stock is low but it isn’t because people aren’t putting their homes on the market.
“The number of people putting homes on the market is only down 12 per cent. Whereas, you know, stock levels are potentially about 50 per cent down. What’s happening is the homes are selling that much quicker. So yes, stock levels are low. But that’s not because consumers are not putting houses on sale,” he said.
“I just thought that was an interesting stat to share,” he said.