Older homeowners, first time buyers and the £3.1 trillion housing conundrum

This week, we've launched a podcast episode as part of Knight Frank's Intelligence Talks series.

Patrick Gower, a consultant for Knight Frank, gives an update on the latest activity in the UK mortgage market: from mortgage holiday adoption rates, to interest rates and how lenders are responding. He is joined by David Forsdkye, our Later Life Finance expert, who speaks about how older generations can help first time buyers.

When asked about mortgage rates and products, Patrick comments, "Between about 80% and 85% loan-to-value, the market is remaining resilient, but there has been a significant drop off above that which is affecting first time buyers in particular. More broadly, mortgage brokers have approximately 40% fewer mortgage products available to choose from, than they had before the pandemic, as banks are still grappling with the effects of Covid-19 and trying to control the flow of business."

David added, "We are seeing older homeowners looking at the equity in their property, and looking to use it to help first time buyers. Homeowners over the age of 65 hold the majority of property wealth in the UK and many are now looking at ways to redistribute that wealth down through the generations. That will help stimulate the market, support first time buyers and ultimately help the economy keep moving forwards." 

To listen to more episodes of Knight Frank's Intelligence Talks, click here or subscribe via Acast, Apple or Spotify.