‘Double bounceback’ for housing market
Scotland’s housing market is poised for two waves of bounceback with the expectation of a return to pre-coronavirus levels, a leading industry figure has predicted.
The sector has been rocked by stay-at-home and physical distancing measures for agents, surveyors and prospective buyers, combined with a backlog in applications via the Land Register of Scotland service.
However, Paul Denton, the chief executive of the Scottish
Building Society, which was established in 1848, said he was starting to see some signs that buyers were looking to life beyond the Covid-19 peak.
“We are still open for business, with our primary focus the health and welfare of our staff and our customers, ensuring we support them financially and emotionally through this time of crisis,” he said.
“We are starting to see signs that buyers are now thinking about life after the Covid-19 peak, with a rise in enquiries on purchase mortgages. And, indeed, our staff are busy processing remortgages, even for those on a mortgage holiday.”
Denton, who represents Scotland on UK Finance’s mortgages board, added: “I think there will be two waves of bounceback. The first, when Registers of Scotland fully reopens and starts clearing the backlog of applications from solicitors. And the second when social isolation measures ease and consumer confidence starts to grow.
“It is clear that the drop in sales volume is driven by social isolation and not a lack of demand from customers.”