"An overnight recovery does not look likely, with most predicting it will take at least six to nine months to happen."
A further 27% of brokers are less optimistic, believing it will take 12 months or more to recover to pre-Covid-19 levels. Meanwhile, 15% see stronger market fundamentals and a recovery within 6 months.
Likewise, the majority (34%) of brokers predicted that lending levels would return to pre-Covid levels within 6-9 months.
However, brokers are more optimistic that the property market and lending levels will recover quicker than the economy, with over half (54%) predicting that the economy will stagnate for 6-12 months but will show growth thereafter.
14% of brokers think the economy will fall into another recession.
Meanwhile, 51% think the government is doing enough to get businesses going forward, with over half (54%) believing the Furlough Scheme is having a positive impact on the financial services industry.
Despite many lenders returning to the market, 36% of brokers said lender appetite was the biggest challenge they are facing during the pandemic. Another 34% said support from third parties, such as surveyors and solicitors was an issue, followed by transactional volumes at 22%.
Only 6% of brokers revealed consumer confidence is the biggest challenge they are facing, suggesting buyers and sellers for the most part are keen to get on and move.
When asked at what stage during the loan process they are encountering the most difficulties, 40% revealed it was the ability to initially source a suitable product for their client. Another 20% of brokers said underwriting timescales were an issue, followed by the logistics of satisfying legal requirements while maintaining social distancing rules at 15%.
Gareth Lewis, commercial director at MT Finance, commented: “These results offer an interesting insight into just how long those working in the industry believe the UK property market and wider economy will take to recover. An overnight recovery does not look likely, with most predicting it will take at least six to nine months to happen.
“While the government’s Furlough Scheme has evidently had a positive impact on unemployment- some further government stimulus would be very welcome to resurrect the property market once lockdown is lifted, such as a stamp duty holiday or concessions.”
