Tag Archives: cookies
Home purchase lending up just 1% in final month of 2014, CML data shows
House purchase lending to home buyers increased slightly by 1% month on month in December but compared to December 2013, the number of loans fell by 5%, according to the latest CML data. However, the figures from the Council of Mortgage Lenders also show that first time buyers saw a month on month lending increase, up 3% on November, but still 3% down on December 2013. By value, £3.8 billion was advanced to first time buyers in December, 6% up on November but unchanged compared to December 2013 while the number of loans advanced to home movers was 29,500, the same as November but down 8% on December 2013. By value, lending to movers totalled £5.5 billion, up 2% on November but 2% down on December 2013. Remortgage lending activity also saw a decline with the number of remortgage loans 7% down on November and 13% down on December 2013. The value of these loans at £3.4 billion was down 6% on the previous month and down 11% on December the previous year. Buy to let loans totalled 17,300 in December, unchanged from November but up 18% compared to December 2013. The total value of these loans at £2.5 billion was up 4% month on month and up 32% compared to December 2013. On a quarterly basis home owner house purchase lending fell 5% and was down 3% compared to the fourth quarter of 2013. The value of these loans at £28.8 billion declined compared to the third quarter by 8% but was up 2% compared to the same period in 2013. First time buyers in the fourth quarter of 2014 saw minimal change compared to the previous quarter and the same quarter in 2013. There were 80,100 loans advanced to first time buyers in this period, down 2% on the third quarter and unchanged compared to the fourth quarter of 2013. The value of these loans totalled £11.6 billion, which was down 5% on the third quarter but 5% up on the fourth quarter of 2013. Home movers were advanced 93,100 loans in the fourth quarter, a decline of 8% compared to the third quarter and 5% down year on year. These loans totalled £17.2 billion in value, 10% down on the previous quarter, but unchanged compared to the fourth quarter of 2013. Remortgage lending declined this quarter with 73,100 loans advanced, down 3% on the third quarter and 13% down on the fourth quarter 2013. The value of these loans at £11.1 billion declined 4% quarter on quarter and 10% year on year compared to the fourth quarter 2013. Buy to let loans totalled 54,000 in the fourth quarter of 2014, up 4% on the previous quarter and up 16% on the same period in 2013. This totalled in value £7.7 billion, an increase of 5% on the third quarter and up 26% on the fourth quarter 2013. Overall for 2014, home owner house purchase totalled 676,900 loans, up 11% on… Continue reading
UK asking prices up 2.1% in February
Average price of property coming to the market in the UK increased by 2.1% or over £5,000 this month with all regions reporting growth, according to the latest index report from Rightmove. This takes the average asking price to £279,004 and the annual price growth to 6.6% but this is down from 8.2% in January. The report says that there is an increasing demand for property and overall there has been a 31% increase in housing transactions in last two years in England and Wales, outstripping the 11% rise in the number of properties coming to the market in same period. The result is that demand is outstripping supply and some agents are reporting their lowest ever stock of quality property for sale. Indeed, there has been a 4% fall in new seller numbers compared to same period in 2014. ‘We’re now over a month into 2015, and despite predictions that the upcoming May election could slow home mover interest, Rightmove has recorded its busiest ever month for traffic and leads to agents,’ said Miles Shipside, Rightmove director and housing market analyst. He pointed out that decades of inadequate provision of homes to satisfy growth in demand are having an increasing effect, with a tight stock market resulting in a shortage of quality property for sale to trade up to. ‘For the right property at the right price, demand is outstripping supply and leading to some further upwards price pressure. However there is a limit to what the majority are willing or can afford to pay, especially with the tighter lending criteria,’ he explained. ‘In locations where there is a tight stock market some different tactics are required for a successful move as competition gets fiercer for quality homes as demand increases,’ he added. Housing demand is at a record high with visits to Rightmove hitting over 100 million in January for the first time ever and home hunters looking through a record 1.5 billion pages of property. New record busiest ever days were set on Sunday 25th and Monday 26th of January. The report also says that email and phone enquiries by home hunters to agents on Rightmove hit 4.3 million for the first time, equating to around 100 enquiries every minute. ‘Quality stock is in short supply in some locations, which is unsurprising given the structural under supply of homes and the recovery from the economic downturn,’ said Shipside. Indeed, Rightmove statistics show that the average available stock for sale per estate agency branch for the last two months at 57 and 58 properties has never been lower at the beginning of a year. New seller numbers this month are also 4% below those recorded in the same period in 2014. ‘Many who are contemplating moving will have noticed a lack of suitable property for sale in their area, and may be hoping that it’s a temporary shortage. What they may not fully appreciate is that this is the new norm, and… Continue reading
Prime London property market likely to be subdued until after election in May
The mood of buyers and vendors alike in the prime London residential market is likely to remain subdued up until after the general election in May, it is claimed. Uncertainty surrounding a potential mansion tax, interest rates and the introduction of capital gains tax liability for non-resident owners are also contributing to the general market angst, according to the 2015 market forecast report from Chestertons. Moreover, a tightening mortgage regulatory environment with the European Mortgage Credit Directive due for implementation by 2016 and the Basel III requirements by 2019 on top of recent new UK rules, may see lenders become more cautious, the firm believes. Indeed, anecdotal evidence suggests that even high net worth individuals are experiencing more difficulty in having their mortgage applications processed despite the fact that exemptions from MMR requirements were given to those with a net annual income of at least £300,000 or a net worth of at least £3 million. The report points out that the UK economy, although forecast to slow this year, is nonetheless expected to remain one of the best performing among developed countries. Indeed, the HM Treasury panel of independent forecasters currently projects GDP growth of 2.6% compared to an estimated out turn of 3% in 2014, although it expects unemployment to reduce further. The panel also forecasts inflation will creep up, although much depends on the price of crude oil and household expenditure. For the time being, the possibility of deflation remains real. It also points out that pricing is likely to become more sensitive in the shorter term following the revision of Stamp Duty and the potential introduction of a mansion tax, and as buyers sense that they have the upper hand in a softening market. ‘Nonetheless, there are pockets of the market which should be active in 2015. Foreign investment driven purchases should remain robust especially in the new build sector which remains buoyant in terms of both buyer demand and price growth,’ the report says. ‘The UK should enhance its attraction as a safe haven for flight capital from a troubled Eurozone and countries with historic ties with Britain who are experiencing geo-political unrest, such as Egypt, Nigeria and other parts of west Africa. Moreover, various surveys indicate that UK buy to let landlords are keen to expand their portfolios while the attraction of property as a pension supplement for households in or approaching retirement continues to grow in popularity as evidenced by the increase in buy to let mortgage lending last year,’ it explains. ‘As we suggested in our previous report, the outcome of the election could have a considerable impact on the prime London residential market. We expect values to remain flat or see further slight reduction in the run-up to the election,’ it points out. ‘Thereafter, if a Conservative Government or a Conservative led coalition is returned the firm anticipates a gradual uplift in values over the remainder of the year. Otherwise, any combination of Labour/Liberal… Continue reading
