82% of brokers are confident about the UK lending environment until the end of the year despite the Stamp Duty Holiday coming to an end, according to a recent survey from Shawbrook Bank of 187 brokers.
However, the impact of the pandemic on buyers’ finances are still a concern. 59% of brokers believe that the biggest barrier for property purchases in 2021 will be clients’ personal finances. The ending of government support schemes such as the furlough schemes and business bounce back loans, will be key drivers of this. 34% cited job uncertainty as the biggest obstacle facing their clients
For brokers, there is an overarching consensus (76%) that the biggest challenge they are likely to face in 2021 will be issues with valuations.
Gavin Seaholme, head of sales at Shawbrook Bank, said: “The housing market was strong before the pandemic and has proved resilient throughout – therefore it is no surprise that broker confidence remains high for the market for the rest of 2021.
“Brokers have a key role to play in supporting and advising their clients on their next step, whether that’s a new property purchase or remortgage. While landlords and investors’ finances are expected to be the biggest barrier to property purchases in the next six months, ensuring clients are aware of all of the funding options available to them may make adding a new property to their portfolio a real possibility.
“When it comes to challenges facing brokers, issues with valuations remains a top concern. It is important that lenders do what they can to support brokers with this. At Shawbrook this year, we have expanded the use of AVMs and widened our valuation panel, with a dedicated panel of valuers for bridging cases. We will continue to think of ways we can alleviate these concerns amongst our broker community.”
