The City regulator has extended the mortgage payment holiday application deadline for customers struggling to meet payments as a closely-watched report charts a “sharp” decline in house prices amid the coronavirus crisis.
Nationwide’s study registered the biggest monthly fall in house prices for 11 years in May as it warned of an extended slump in both mortgage and housing market activity, despite restrictions on viewings and agents’ work being eased last month in England.
Its measure of house prices fell by 1.7% in May from April, the biggest decline since February 2009.
In annual terms, prices rose by 1.8%, slowing from 3.7%.
Nationwide said the impact of the COVID-19 pandemic on the mindset of homebuyers was likely to weigh on the market.
A survey it conducted suggested people had put off moving as a result of the lockdown and would-be buyers were planning to wait six months on average.
The mortgage lender’s report was released as the Financial Conduct Authority (FCA) confirmed plans to allow applications for a mortgage payment holiday until 31 October – with the ban on repossessions also being extended to that date.
By
Source link
