Sporting Tournaments Cause Market Slump

by Mark Johnston

Whether your sport of choice is tennis or football, the summer of 2010 has been full of missed opportunities. England’s shocking performance in the World Cup in South African or Andrew Murrays loss at Wimbledon yesterday.

Whilst many of us have followed England in South Africa and Andrew Murray at Wimbledon. the nation has had another fight on its had that its looking like we’re loosing. Many house buyers have been distracted from buying and chosen instead to following the sporting events.

During these two tournements the number of property sales have fallen by over 5%. The West Midlands have been hardest hit with a drop of 26.4% in house sales in June, and the South West coming in at a disappointing second with a drop of 11.9%.

Wales had a similar slump, house sales dropped over 10% whilst the north east dropped by 8.8%. London faired a little better but still recorded a drop in sales, down 7.7%. Most of the drop has been apportioned to people opting to watch sporting events instead of go house hunting.

Both the North West and East Midlands recorded increases of 10.5% and 6.7% respectively. Now that the two competitions are over, analysts are hoping to see an overall increase in sales before the normal slump in August which is caused by many taking their summer holidays in the month.

The recent figures showed that many cities suffered over the sporting season such as Birmingham down 34.7%, Nottingham down 32%, Southampton down 27.8% and Glasgow down 27.4%. Only a couple of cities did well, Manchester recorded an increase of 37%, whilst Milton Keynes was up 30%.

While home buyers have been distracted from buying new property, causing the slump; lenders have been coming up with deals to co-inside with the events.

Platform, which is an intermediary of the co-op is offering a new mortgage that is fixed until the next world cup. The South African world cup ends in just over a week but this new mortgage will take you to the next football world cup in Brazil in 2014.

The mortgage is available to both purchases and those looking to remortgage. The loan is currently offered at 3.99% with a loan to value (LTV) of 60 percent.

Platform are also offering a 70 percent loan to value version at 4.19 on the same 4 year fixed offer. Their 75 percent LTV mortgage is just 4.49% with their 80 percent version costing 4.99 percent.

Lee Gladwell, the business development director at Platform said “We believe this new year product is an excellent choice for customers seeking the reassurance that comes from fixed monthly payments”.

Platform aren’t the only lender targeting the football obsessed borrower. Santander offered its ‘Hat-Trick’ mortgage early this month. The mortgage is a 3% tracker with a loan to value (LTV) of 75%. For more details visit our ‘Santander’ section of mortgage news.

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