Leeds Property Market Update November 2020

The Leeds property market has had its challenges in November, but it remains extremely buoyant and attractive from an investor’s perspective.

Despite now being in a second national lockdown, the housing market remains open, the furlough scheme has been extended and mortgage holidays are still available to all landlords. Buyers who were temporarily uncertain in the run-up to the new lockdown have sprung back into action, with the first 6 days of the lockdown seeing demand up 49% on the same time last year.

As well as this, the Rightmove House Price Index has reported annual price growth of 7.4% in Yorkshire & the Humber, with some parts of Leeds growing much faster.

Sales Update

As a result of the stamp duty holiday and the opportunities created by COVID-19, there has been an increase in the amount of demand for buy to let properties, specifically in the £100k – £200k price range.

This increase in the number of buyers in the market has made it harder to negotiate with agents – unless you are considered ‘a trusted buyer’ by the agent – which fortunately, we are.

We are currently also seeing cash buyers being favoured by sellers as they do not want the risk or stress of mortgages falling through.

Mortgage Update

The turnaround time for mortgage applications has increased drastically from 4-6 weeks to about 12 weeks. This is due to the increase in transactions, coupled with the decrease in the number of employees available to process the applications, and is delaying a lot of our sales.

As well as that, due to the increase in the number of people purchasing in limited companies, the mortgage rates for limited companies are increasing (from approximately 2.8% to 3.3%), while the rates for those wanting a mortgage in their personal name, have decreased (from approximately 2.5% to an incredible 1.8%).

Lettings Update

The Leeds lettings market is very strong at the moment and will remain so in the lead up to Christmas. 

The rents have been increasing throughout 2020 at an astonishing rate. Typically, we expect rents to go up 3-5% year on year, but this year, they are up 20%! 

For example, a house that we used to rent a year ago for £550 pcm, may now rent for £650 – £675 pcm, which is great news for investors!

As usual, we are anticipating a short lul between Christmas and the New Year, after which we expect demand to pick up rapidly as we get into the January market, typically, the busiest time of the year.  

The Leeds property market has had its challenges in November, but it remains extremely buoyant and attractive from an investor’s perspective.

Despite now being in a second national lockdown, the housing market remains open, the furlough scheme has been extended and mortgage holidays are still available to all landlords. Buyers who were temporarily uncertain in the run-up to the new lockdown have sprung back into action, with the first 6 days of the lockdown seeing demand up 49% on the same time last year.

As well as this, the Rightmove House Price Index has reported annual price growth of 7.4% in Yorkshire & the Humber, with some parts of Leeds growing much faster.

Sales Update

As a result of the stamp duty holiday and the opportunities created by COVID-19, there has been an increase in the amount of demand for buy to let properties, specifically in the £100k – £200k price range.

This increase in the number of buyers in the market has made it harder to negotiate with agents – unless you are considered ‘a trusted buyer’ by the agent – which fortunately, we are.

We are currently also seeing cash buyers being favoured by sellers as they do not want the risk or stress of mortgages falling through.

Mortgage Update

The turnaround time for mortgage applications has increased drastically from 4-6 weeks to about 12 weeks. This is due to the increase in transactions, coupled with the decrease in the number of employees available to process the applications, and is delaying a lot of our sales.

As well as that, due to the increase in the number of people purchasing in limited companies, the mortgage rates for limited companies are increasing (from approximately 2.8% to 3.3%), while the rates for those wanting a mortgage in their personal name, have decreased (from approximately 2.5% to an incredible 1.8%).

Lettings Update

The Leeds lettings market is very strong at the moment and will remain so in the lead up to Christmas. 

The rents have been increasing throughout 2020 at an astonishing rate. Typically, we expect rents to go up 3-5% year on year, but this year, they are up 20%! 

For example, a house that we used to rent a year ago for £550 pcm, may now rent for £650 – £675 pcm, which is great news for investors!

As usual, we are anticipating a short lul between Christmas and the New Year, after which we expect demand to pick up rapidly as we get into the January market, typically, the busiest time of the year.