The Bigger Issue
A right royal boo The royal wedding, late Easter and countless bank holidays meant April was a shor
We went into April expecting it to be a difficult month but surprisingly it turned into our second busiest of the year so far but I would imagine that the industry as a whole will not follow that trend.
The multiple public holidays all coming in quick succession was always going to mean that the market would be subdued with many people taking the other days off and enjoying the break.
I was always hopeful that for some this would give them time to look at property and it looks like that, to some extent, did happen.
That said London was much quieter in the week of the royal wedding.
I had a few meetings in different areas of the capital that week and it was eerily quiet compared to the normal rush. There has been a lot of press coverage about how much the
three days would cost the economy and of course this cannot be ignored. There is a balance to this though in that these days did also give the nation a lift.
Whatever your thoughts on the wedding, few would argue that it did have a positive effect on everyone in one way or another.
The timing of the Easter holiday this year could not be avoided but May saw a further two bank holidays and these should be looked at to see if moving one to later in the year could be advantageous.
I for one would support this move as even in a year when Easter is earlier, these days do appear to come around quickly. The biggest challenge I, and a number of others that I have spoken to about this, have faced is completing five days worth of work in the three to four days that we have had in any given week.
I could not help but feel that the working day was just not long enough during that time!
David Sheppard, managing director, Perception Finance
All-in-all, the month of April was pleasantly busy. Let’s hope the rest of the year continues that way.
In absolute terms, activity in April was slightly down on March figures and on its level 12 months ago. However, accurate forecasting is the key to measuring performance and altering the forecast to take account of the two long bank holidays meant that there were no nasty surprises. Traditionally bank holidays and Easter in particular have caused an uplift in activity as homeowners take advantage of the warmer weather and time off work to put their property on the market or prepare for viewings. Our experience seems to suggest that this time was no different. As it typically takes a few weeks for viewings to start and new mortgage applications to generate valuations, we are unlikely to see the impact of new April listings until May or June. Mortgage approval levels are also likely to pick up again in May as, unless you’re a Middleton and suddenly feeling considerably more financially secure, an extra bank holiday will not determine whether or not you apply for a mortgage, it will simply push the date of application forward or back. For both valuations and mortgage approvals therefore, May’s
figures will be the ones to look out for. Who knows - we may even discover that the Easter break and the royal wedding helped to bolster consumer sentiment in a bigger way, leading to a more buoyant late Spring period than usual. On the whole, the level of market activity has been gradually
improving during 2011 and I do not immediately see this upward curve changing.
Recent months have seen an increase in available mortgage
products and particularly in 90% LTV products. The higher LTVs will help make home ownership more accessible again, particularly benefitting first-time buyers - a group it is essential to help if the younger generation are ever to own their own Buckingham Palace.
Many first-time movers, another vital component of a dynamic market, may find themselves saddled with low equity and will also benefit. Though April may have skewed the figures slightly, the extra time off will not have had a long term effect on the market. .
Alison Beech, business relationship director, Valunation
Our experts have had their say, now it’s your turn to have yours. Visit
www.mortgageintroducer.com and vote for the expert you think makes most 26 mortgAge introducer JUNE 2011
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