Housing market ‘bouncing back’
Leeds Building Society chief hails the rebound
PROPERTY: The boss of Leeds Building Society said the mortgage market has bounced back strongly from the Covid-19 shutdown thanks to pent-up demand after lockdown.
Richard Fearon said that activity for June was ahead of the same month in 2019 and that all indicators were that July would match this performance.
THE BOSS of Leeds Building Society said the mortgage market has bounced back strongly from the Covid-19 shutdown.
Richard Fearon said that activity for June was ahead of the same month in 2019 and that all indicators were that July would match this performance.
The society saw its biggest month of shared ownership lending and Help to Buy lending as pent-up demand during the weeks of lockdown brought buyers and sellers back to the market.
Mr Fearon’s comments came after profits dipped by close to £17m in the six months to the end of June this year.
Leeds Building Society, the nation’s fifth largest mutual, delivered £32.6m in profits during the first six months of the year, as compared with £49.4m last year – a performance Mr Fearon described as “strong” against the economic turmoil the global economy is facing.
Mr Fearon, who stepped up to the chief executive role last year, also paid tribute to his staff ’s resilience and hard work during lockdown, describing himself as “phenomenally proud” of his team.
Concerning the housing market, Mr Fearon said: “Mortgages were very subdued during March and April, so it is very encouraging to see how strongly it has bounced back.
“The mortgage market is absolutely on fire right now and that has been helped by pent-up demand and the Stamp Duty announcement. But also we have seen research showing people had time to think during lockdown and plan their next move.
“That gives me real confidence looking forward, I am very optimistic about the mortgage market.”
The society’s capital position remains healthy, with its cost to income and cost to mean asset ratios of 52.5 per cent and 0.47 per cent respectively remain among the best in the sector.
The society is still due to relocate to a new headquarters from its current home on Albion Street to new premises on Sovereign Street, close to the city’s railway station.
Mr Fearon said while work on the move had paused during lockdown it was still on track to move as scheduled in 2021 but the new headquarters would be designed around modern requirements to allow for a flexible working environment to help people to work remotely to a greater degree.
He also confirmed that no staff were furloughed during the crisis.