Press

"March's meteoric increase in lending was wholly artificial, driven by the stampede of first-time buyers hoping to beat the stamp duty deadline rather than any sustained loosening of lending criteria. In fact, the opposite is happening. After the peak in the mortgage market earlier in the year, we are facing the prospect of a trough as lenders tighten criteria and retreat from higher LTV lending - a factor that has taken its toll on buyer activity and house prices outside prime parts of London in the last month. Despite underlying buyer demand, concerns over the faltering economy have knocked lenders' confidence, while the Eurozone crisis has pushed up the cost of raising funds to lend, and this is likely to be reflected in the coming months' lending data.

"If nothing else, the burst of mortgage market activity highlights the importance of the stamp duty holiday to first-time buyers, and the government’s folly in re-imposing such a financial burden for many new buyers. A vibrant first-time buyer market is the lifeblood of a healthy property market, and the sharp increase in activity in March acted as a catalyst, freeing up property chains and allowing home movers to take advantage also.

Marsh & Parsons is staging a three day doughnut giveaway to celebrate the opening of their new Earl’s Court office and inform local residents of their zero percent commission offer.

Over the course of today, Friday and Saturday,  the Earls Court team will be stationed at  various places  to hand out the free snacks. Over the course of the three day campaign, Marsh & Parsons will have handed out 6,000 doughnuts.

The treats are accompanied by information on five excellent free things to do in the local area, whether visiting the upcoming Heritage Show or viewing the Works on Paper exhibit at the Cadogan Contemporary. And of course, selling your property for free.

"The national housing market started the year strongly, but some of the shine has started to come off as mortgage lending conditions worsen. Early year lending and buyer activity was buoyed by demand from first-time buyers moving before the stamp duty deadline, but banks’ nervousness over the eurozone crisis and its impact on funding costs has begun to rein in their lending to new buyers. This cautious approach is unlikely to be reversed in the immediate future given the announcement of a technical recession, which could also dent some buyers’ confidence outside London. On the other side of the coin, the recession pushes the prospect of an interest rate hike out of sight, which will help support house prices in the long-term and prevent many homeowners’ mortgage costs from moving too far from their historic lows.

"The flurry of first-time buyers trying to secure mortgages in time to beat the stamp duty deadline is still filtering through the most recent lending figures, creating a trend of growth in lending to those who need finance the most. Whether or not this will continue in coming months following the increased cost of moving remains to be seen, but there have been underlying improvements in the market that should not be overshadowed by the stamp duty driven demand. Encouragingly, despite the ongoing fears of the eurozone crisis, lenders increased average income multiples to first time buyers in February – effectively boosting the amount of money the average buyer can access relative to their salary. If this continues, it will go some way towards supporting the lower tier of the market and compensating for the ill advised removal of the stamp duty exemption in March."