House hunting picks up as some offer after 20 minutes

Property sales will pick up in the autumn owing to a change in the “mood music” in the housing market, surveyors say.

But a survey by property portal Rightmove suggests that some of those buyers will make an offer after short viewings.

A fifth of buyers questioned said they had looked around for less than 20 minutes before putting in their bid.

It comes after the UK’s biggest mortgage lender said house prices are likely to rise for the rest of the year.

Expectations of a rise in sales have reached their highest level since the start of 2020, according to the Royal Institution of Chartered Surveyors (RICS).

Its monthly report found that surveyors expect activity to pick up over the next three months, with more predicting an increase in the year ahead.

Government housebuilding pledges and a cut in interest rates – the first in four years – by the Bank of England had “shifted the mood music in the sales market”, according to RICS chairman Simon Rubinsohn.

“Significant challenges lie ahead in delivering on the ambitions around planning reform and it is far from clear that the Bank of England will follow the August move with further easing over the coming months,” he said.

“But, even so, the policy mix is becoming more supportive for the sector.”

Buyer demand is expected to rise, but this may not be matched with the number of homes put on the market.

The result could be higher prices and greater competition between house hunters.

Zoopla’s survey suggested that a fifth of those asked who had bought in the last five years, put in an offer after a total viewing time of 20 minutes.

Some spent less than five minutes looking around, although the average was 49 minutes.

Daniel Copley, consumer expert at Zoopla, said: “Buying a home is the most expensive purchase most of us will ever make. So, it’s crucial to make every effort to inspect all elements, in order to save yourself time and money further down the line.”

During the pandemic, lockdown restrictions meant some buyers were making offers having only had virtual viewings.

The race for inside and outdoor space during that time, as well as stamp duty incentives, created a boost in sales particularly in rural and coastal areas.

Since then, higher mortgage rates have put the brakes on sales.

However, there are signs of more competition between lenders with expectations of drops in the wider cost of borrowing.

On Wednesday, the Halifax, part of Lloyds Banking Group, said that mortgage rate drops were “encouraging” for first-time buyers, those moving along the housing ladder or those refinancing.

But it warned affordability challenges and a lack of available properties still posed problems for buyers.

Last week the Bank of England lowered interest rates to 5% – the first cut since the start of the pandemic in March 2020, but its governor warned not to expect a flurry of further reductions.

• Make overpayments. If you still have some time on a low fixed-rate deal, you might be able to pay more now to save later.
• Move to an interest-only mortgage. It can keep your monthly payments affordable although you won’t be paying off the debt accrued when purchasing your house.
• Extend the life of your mortgage. The typical mortgage term is 25 years, but 30 and even 40-year terms are now available.

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