This page contains a Flash digital edition of a book.
The Analysis News & Opinions


Opinion


Thoughts on government business support schemes


Housing sentiment rebounds, fears rise


Consumer views on the housing market rebounded strongly in the BSA’s quarterly consumer


survey, Property Tracker.


However, longer term fears about job security may dampen future activity as it was seen as a barrier by 68% of respondents, topping the list of barriers to home ownership for the second quarter running. This time last year job security was cited


Last month, a new package of measures was announced by the chancellor to provide ongoing support to businesses over the coming months. The banking and finance industry is


providing unparalleled levels of support to businesses large and small to get them through these challenging times. Over 1.3 million businesses have so far


received finance through the government- backed loan schemes, and lenders welcome the extension for applications to provide better co-ordination of end dates and allow time to consider what ongoing support is then required. These schemes are just one part of a broad


package of measures from the industry, alongside commercial


lending, capital


repayment holidays, extended overdrafts and invoice finance facilities. UK Finance and its members will


continue work with the government and other groups to ensure businesses are able to access the finance they need.


Stephen Pegge Managing director of commercial finance, UK Finance


as a barrier by 37% and in March – before lockdown – by just 35%. The survey also highlighted a number of marked regional differences of view about the housing market. There has been a marked uplift in the


number of people who say that now is a good time to buy a property – 37% in September compared to 25% in June. Across the regions views are most positive in the East of England (48%) and least positive in Yorkshire and Humberside (31%). Across the regions those in the West


Midlands and the South East a greater proportion saw job security as a barrier to property purchase with 76% and 73% respectively selecting it, compared to 62% in London and 63% in the North West. In many areas house prices have been


boosted by pent-up demand after lock-down, coupled with the stamp duty holiday. Looking ahead 12 months, 32% of


people still believe prices will rise in the coming year, clearly going beyond the March deadline for the stamp duty holiday. Those in Yorkshire and Humberside and


Wales were most sure at 40% and 39% respectively whilst just 23% of those surveyed in London and 25% in the North East thought the same. When asked if they were more or less


likely to move home because of the pandemic, 4% reported that they had already moved


and 10% stated that they were more likely to do so. Looked at regionally, people in London (15%) and in Scotland (14%) were the most likely to move home because of Covid-19 and people in Yorkshire and Humberside (4%) and Wales, West Midlands and the South West all at 7% were the least likely to make a move. Paul Broadhead, head of mortgages and


housing at the Building Societies Association said: “The boost in activity and transaction volumes in the housing market since full lock-down was eased is to be welcomed. “Many people who were part-way


through a move in March have been able to complete and there is no doubt that the virus has had an effect on people’s attitudes to home, and what in an ideal world they want and need from theirs. “As our survey shows some have already


taken action. “Mortgage application volumes are


strong, but it seems that completions are taking a little longer then they would have done pre-Covid. “Strong application volumes, coupled


with the need to focus on those who took a mortgage payment deferral is causing some capacity challenges, which is one of the reasons why the longevity of some products is so short. “Looking ahead, the volume of consumers


going from a payment deferral back to normal payments is encouraging. “However, we are not in normal times


and forecasts of rising unemployment, and the imminent end of government support schemes mean that lenders are rightly focused on risk and affordability. “Whilst very definitely open for business,


responsible lending is the watchword as we navigate the next six to 12 months.”


10


www.CCRMagazine.com


October 2020


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52