Bankrate: Market to cool thanks to Tier 2 and 3 restrictions

26 October 2020 | General

Housing market activity is expected to cool due to the new Tier 2 and 3 restrictions hitting the market.

Locations in Tier 3 include South Yorkshire, Greater Manchester, Lancashire and Liverpool City Region.

While the housing market hasn’t been shut down, Bankrate UK expects the restrictions to have an adverse impact on activity.

Nisha Vaidya, mortgage expert at Bankrate UK, said: “It’s still unclear how the new Tier 2 and 3 lockdown restrictions will impact property buying in the affected regions, but it’s important to remember that these restrictions are different to those implemented in March.

“Earlier this year, there was a blanket ban on in-person property viewings, whereas the latest Tier 3 rules still allow for viewings and for removal companies to access properties, provided that it’s done in a COVID-secure manner.

“We know that since the property market kicked back into life over the summer, there has been a surge in house buying activity, driving up prices to record highs.

“But the market looks set to cool in the coming months as the latest restrictions, combined with increasing economic hardship and reduced mortgage availability will likely have an impact on buying.

“Anyone trying to plan their next moves in this uncertain market should consider using free house buying guides and mortgage comparison tools to help them better understand their options in the weeks and months ahead.”

This post has originally been featured in Property Wire.