In Focus Consumer Credit
Looking up?
Positive signs for lenders come with new data on the property market
Colin Bradshaw Chief customer officer, TwentyCi
Over 1.5 million UK households are currently wanting to move, moving soon, moving now, just moved or are settling in to their new home according to our latest Property & Homemover Report. For credit providers, this uplift of almost
20% since 2019, offers significant opportunity since homemovers are proven to be the most valuable group of consumers spending more than £12bn a year, over and above the transactional value of their new homes, equating to three percent GDP.
Comparison In comparison to 2019, there has been a 27% uplift in households Wanting to Move, a 32% rise in those Moving Soon, a 47% increase in those Moving Now, a 26% increase in households that have Just Moved, but a drop of 38% across those households Settling In; although this is set to rise significantly as the households in the preceding categories progress through the moving journey.
The data also shows that the property
market is maintaining momentum against last quarter’s record high with over 380,000 households still Wanting to Move. Moving Now and Just Moved households have experienced 85% and 165% increases respectively since Q3 2020, which reflects the uplift seen in last quarter’s Wanting to Move households. The importance of this group of consumers
to credit providers is critical. Harnessing the data for targeted marketing campaigns will bring significant gains as these are customers that are actively wanting credit. Consequently understanding where they are in the moving journey means you can reach them at just the right moment.
Other key findings l There are currently 550,000 property sales agreed, these are up 10% year-on-year. l New instructions in 2020 remained level at 1.6 million.
Moving Now and Just Moved households have experienced 85% and 165% increases respectively since Q3 2020, which reflects the uplift seen in last quarter’s Wanting to Move households
l Exchanges are currently down by 5% in comparison to 2019, as a result of COVID restrictions and demand for conveyancing outstripping supply, but a rush of completions is expected over the coming months as home movers look to expedite the conveyancing process to beat the stamp duty holiday deadline. l Price changes and withdrawals dropped by 17% and 9% respectively reflecting market buoyancy where demand is outstripping supply. l The average asking price is now £375,000 an increase of 8% since 2019. l The Midlands have recorded the highest increase in house prices (12%). l The East of England has experienced the highest year-on-year sales volume change with an increase of 21%. l Detached houses are the most popular type of residence with a year-on-year sales volume increase of almost a quarter (24%). l The lettings sector has softened significantly seeing a fall of close to 10% on new instructions (8%), lets agreed (8%) and lets (11%). CCR
26
www.CCRMagazine.com February 2021
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