Tag Archives: british
Mortgage arrears and repossession downs in the UK, latest data shows
The proportion of UK mortgages in arrears or ending in repossession fell in the first quarter of this year, according to the latest figures from the Council of Mortgage Lenders. A decline was experienced in all arrears bands, and across both owner occupier and buy to let lending. The total proportion of all mortgages with arrears equivalent to more than 2.5% of the mortgage balance was 1.03% at the end of the first quarter, down from 1.05% in the fourth quarter of 2014, and well down on the 1.24% recorded at the same time last year. In numerical terms, there were 113,900 loans in arrears. Of these, just 24,400 were in the most severe arrears band at more than 10% of balance, equating to 0.22% of all mortgages. This is the smallest number and proportion of mortgages in the most serious arrears band since the end of 2008. The proportion of mortgages resulting in repossession in the first quarter was 0.03%, down from 0.04% in the fourth quarter of 2014 and 0.06% in the first quarter of last year. The number of repossessions was 3,100, down from 4,200 in the fourth quarter of last year, and 6,400 in the first quarter of 2014. ‘Although complacency would be misplaced, the underlying picture continues to be one of improvement and a continuing reduction in mortgage arrears and repossessions,’ said CML director general Paul Smee. ‘The message remains the same: don't delay in contacting your lender if you are experiencing temporary payment problems, as lenders want to help you resolve them, and will only take possession of property as a last resort,’ he added. Meanwhile, the latest figures from the Finance and Leasing Association (FLA) show that the number of second charge mortgage repossessions fell 45.3% in the first three months of 2015, compared with the same period last year. ‘Second charge repossessions are continuing to fall as second charge lenders continue to do all they can to help customers in financial difficulty,’ said Fiona Hoyle, head of consumer credit at the FLA. Continue reading
UK house prices up in all regions in April, latest RICS index shows
General election uncertainty saw new instructions fall and house prices rise in all parts of the UK in April, according to the latest report from the Royal Institution of Chartered Surveyors. House prices were driven up again in April as the data showed the third consecutive monthly decline in supply with new instructions falling at their fastest rate since May 2009, the RICS residential market survey shows. While 33% more surveyors saw prices rise in April, the highest reading since last summer, new instructions slipped to a net balance of -21%, the eighth consecutive drop in the last nine months. Moreover, the flow of second hand stock onto the market dropped in most parts of the country. Alongside this, for the first time since August 2014, respondents reported an increase in prices in every area of the UK due to the shift in tone in the London market, where 28% more respondents saw prices rise compared with 6% more surveyors in March who saw house prices fall. Near term member expectations for prices and sales continue to point to relatively modest gains, but 72% of members expect prices to rise over the course of the next 12 months. Meanwhile, in the lettings sector, there is no slowing in the growth of tenant demand, which is helping to underpin higher expectations for rents. Although anecdotal evidence suggests that these trends may have in part been a result of uncertainty ahead of the election, they are also reflective of deeper underlying problems, the report points out, adding that the downward trend in owner occupation rates across the country is a visible sign that affordability constraints bite ever deeper, as does the squeeze on household budgets from higher rents. ‘It is conceivable that the decisive outcome to the election could encourage a pick-up in instructions to agents and ease some of the recent upward pressure on house prices, but it is doubtful that this will be substantive enough to provide anything more than temporary relief. Alongside an increased flow of second hand stock, it is absolutely critical that the new government focuses on measures to boost the flow of new build,’ said Jeremy Blackburn, RICS head of UK Policy. ‘The affordability and availability of homes in the UK is now a national emergency and addressing this crisis must be the priority for the new government. The last time we were building 300,000 homes was in 1963 under Harold Macmillan’s Conservative government, which utilised both public and private building,’ he pointed out. ‘We need a coherent and coordinated house building strategy across all tenures. This should include measures that will kick start a supply side revolution, such as mapping brownfield, addressing planning restrictions and creating a housing observatory to assess the underlying economic and social drivers of housing and provide the impetus for solutions,’ he added. He concluded that introducing demand side measures such as extending Right to Buy will not see the Conservatives deliver on their promise… Continue reading
More British buyers interested in property in Italy, research suggests
Favourable exchange rates have led to more potential British buyers looking at the Italian property market and they are also considering more expensive houses, it is claimed. The value of the Italian real estate for which the British have made requests has almost doubled, up 90%, in the last year, according to research from Gate-Away, an online real estate portal that promotes Italian properties to overseas buyers. If in the first quarter of 2014 the average value was €190,000 but in the first three months of this year it was €324,000. The number of requests from the United Kingdom has also increased strongly, up 87.5% in the first quarter of 2015 compared to the same period in 2014. The UK is still the country which generates the highest number of requests with 17.6% of the total, ahead of the United States at 14.2% and France at 9.3%. This is set to continue, the firm says, as the current favourable exchange rate allows the same Sterling budget to stretch to properties which have a much higher value in Euros compared to last year. Requests from the United Kingdom for properties under €100,000 fell from 45% in the first quarter of 2014 to 39% in the first quarter of 2015, contrary to what happened with regard to buildings above €500,000, demand for which rose from 4.9% to 10.7%. ‘The average value of the Italian properties sought by the British has grown tremendously in this first quarter, and even beyond the depreciation of the Euro against the pound,’ said Simone Rossi, commercial director of Gate-Away. ‘More and more Brits that ever are being driven by the favourable economic climate and are finding that the Italian real estate market is far from inaccessible and beginning to consider the idea of buying a house in Italy very seriously,’ added Rossi. The research also shows that after years of unchallenged domination by Tuscany, in the first quarter Puglia topped the list of locations most desired by British buyers with 13.9% of total requests, just ahead of Tuscany at 11.8%, Piedmont at 9.6%, Abruzzo at 9.4% and Liguria at 9.3% of the requests. Some 80% of the requests by the United Kingdom were for individual houses and 20% for apartments. Some 55.7% of the requests are for properties which are already habitable and 20% for property to be restored, which confirms that the English have a preference for this particular type of investment abroad. Continue reading
