news | 1 month ago | Mike Cook, chief mortgage officer at Market Financial Solutions (MFS)

Confidence is returning but the opportunity window for property investors may be closing

Confidence is returning to the market among borrowers and lenders alike. Following months of uncertainty and rising costs, it appears buyers believe the worst of it is behind them.

According to the Bank of England, individuals borrowed £1.5bn net of mortgage debt in February, compared to £1.1bn of net repayments in January. 

What’s more, net mortgage approvals rose to 60,400 in February, up from 56,100 in January — the highest amount seen in 17 months. Also, agreed property sales are currently 9% higher than they were a year ago, according to Zoopla. Its latest House Price Index showed that all its primary measures of housing market activity had positive momentum last month. 

Chances are, much of this momentum will ramp up over the remainder of 2024. Several property consultancies, analysts, and estate agents also expect house prices to rise from 2025 onwards. 

What this potentially means is that property investors have a closing window in which they can purchase homes at relatively low prices. 

Indeed, MFS’s own research shows investors are thinking about what opportunities to go for in 2024. When asked what types of real estate assets they saw as the most desirable to invest in this year, BTL assets, student accommodation, and residential property (not to be let) proved particularly tempting. 

Fortunately, the specialist market is primed to accommodate this small window of opportunity. Not only can our funding be issued in days, but our products can be utilised for a broad range of residential, and commercial properties. 

The specialist lending scene has been, and will continue to be there for property investors in both good times and bad. At MFS, we lent throughout the pessimistic post-mini Budget period. We’ll do the same as optimism returns over the coming years. 

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