Broker criteria searches in July provided strong indicators that the housing market is still being affected by lockdown, according to Knowledge Bank.

New data showed that COVID-19 continued to feature prominently in criteria searches during July, with ‘Temporary Maximum LTV Restrictions’ again in the top five searches across three of the seven categories.

Knowledge Bank highlighted that the residential market has continued to be dominated by coronavirus as brokers searched to maximise the amount their clients can borrow.

The criteria search specialist highlighted that a feature in July was the number of people searching for ‘Self-employed with one year’s accounts’. Many newly self-employed people missed out on being able to access the furlough scheme, and Knowledge Bank suggested this search indicates they may now be looking to access funds through their mortgage instead.

Searches for the Help to Buy equity loan scheme were in third place on the list to provide evidence there are a growing number of buyers looking to take advantage of the scheme before it comes to a close on the recently extended end date of 28 February 2021.

The data also showed that a spike in searches for ‘Holiday Lets’ was evident in the buy-to-let market. Knowledge Bank suggested this had been boosted by the introduction of the stamp duty holiday, and by coronavirus impacting consumer habits – making holiday homes increasingly desirable.

Knowledge Bank lender relationship manager, Matthew Corker, commented: “It is clear that the effects of COVID-19 are still hitting the mortgage market as they are likely to do for some time to come.

“More people are looking into holiday lets as the desire to travel abroad is falling among UK citizens while COVID-19 continues to impact the travel sector. I expect this to become a trend in the coming months as travel bans are enforced and air travel remains limited.

“Let’s not forget the stamp duty holiday will further encourage consumers to take the plunge. The beauty of holiday lets is they also allow buyers themselves to benefit from a secondary location, something everyone in the UK likely wishes they had access to right now.

“Throughout June and July, we have seen indicators that the housing market is moving, and the stamp duty holiday is one of the sources that will provide the economy with the boost it needs.”

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