More than three-quarters (79%) of mortgage brokers feel optimistic about the performance of the new housing market in 2022, new research from the TMA Club reveals.
However, despite their optimism, 40% of brokers believe that the lack of housing supply is the biggest challenge facing the new construction sector.
In addition to limited housing supply, one in five brokers (22%) think the lack of high loan-to-value loans is the biggest challenge they face when helping clients looking to buy a home. new house. Another 15% think the limited availability of suitable criteria from lenders is the biggest concern.
Yet, the TMA has seen positive movement recently from lenders, particularly in the high LTV space, offering affordable low deposit mortgages to potential buyers. This includes the Deposit Unlocking Program, which is expected to attract more lenders in 2022.
The research also suggests that the majority of inquiries (62%) brokers receive are from first-time buyers. With the Purchase Assistance Scheme ending in March 2023 and many developers selling forward for up to 12 months, there are fears that without a suitable replacement, first-time buyers will find it difficult to access the scale of the lodging.
Despite this, 80% of brokers believe that the end of the purchase assistance program will actually have a low to moderate impact on their business and their clients.
Craig Hall, Financial Services Manager for New Homes at LSL Property Services, comments: “Covid-19 has disrupted the new build sector since 2020, but it is positive to see brokers feeling more optimistic about this. market sector in 2022.”
“Despite this, there clearly remain challenges in the new build market, with the limited supply of new homes coming to market remaining a key concern for brokers.”
Hall explains that the coming year promises to be marked by significant changes for the new construction sector, especially as we approach the end of purchase assistance.
“With many developers selling their properties forward, it is likely that we will see a post-Buy Aid market materialize from Q2 2022,” he adds. As a result, we may well see a growing emphasis on shared ownership for homebuyers, while the government’s expanded first-home program may also start to play a significant role.
“Indeed, we hope to see more innovation from lenders as well as the emergence of new private schemes over the coming months to ensure that first-time buyers and others in the new construction sector continue to get the support they need.”
For those looking to move up the housing ladder, Hall advises exploring the full range of product options available to find the right fit – and the best way to do that is to seek advice from a professional mortgage adviser. independent.
TMA aims to provide its brokers with comprehensive and practical support to ensure they have the right tools to best assist their clients in this area of the mortgage market. It offers regular workshops, 24-hour support channels and an ever-expanding product selection, to ensure brokers have a wide range of choice and all the support they need when dealing with clients who are looking for to buy a whole new house.