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New figures show 50,000 have used flagship Right to Buy scheme in UK since 2012
Nearly 50,000 households in the UK have now used the government’s Right to Buy programme since the scheme was reinvigorated in 2012, the latest published data shows. This means that overall some 291,000 households have now been helped to purchase a home through government backed schemes, which also include Help to Buy, since 2010. The data also shows that more than 3,000 people bought under the Right to Buy scheme between October and December and councils received £259 million from sales of homes which will go towards building additional homes. For every additional home sold under the Right to Buy a new additional affordable home is built which further increases the housing stock nationwide. There have now been nearly 5,000 starts on additional homes, exceeding the target for one for one additional sales. ‘We are determined that anyone who aspires to own their own home should have the opportunity to do so. These figures show people are still very keen to take up their Right to Buy and why we are now extending that opportunity to housing association tenants,’ said Housing Minister Brandon Lewis. ‘Britain is building again and homes are being delivered following the sale of properties. Alongside this a thousand tenants are registering each week to join those who have already realised their dream to own their home,’ he added. The figures reveal that the top 10 places taking up Right to Buy are Birmingham, Nottingham, Leeds, Sheffield, London’s Newham, London’s Tower Hamlets, Wolverhampton, London’s Southwark, Kingston Upon Hull and London’s Barking. And the voluntary Right to Buy will extend the discounts currently enjoyed by council tenants to 1.3 million housing association tenants giving them the chance to own their home too. More than 25,000 housing association tenants have already registered their interest in taking up this option with 1,000 registering their interest each week. The historic agreement between the government and housing associations also ensures an additional home will be built for every one sold nationally, significantly increasing supply across the country and two for one in London. The Right to Buy scheme gives qualifying social tenants the opportunity to buy their rented home at a discount. Under the reinvigorated Right to Buy, local authorities are now able to keep the receipts from additional Right to Buy sales to pay off debt and fund additional affordable housing. Since 1980, Right to Buy has helped nearly two million council tenants to realise their aspiration to own their home. Continue reading
UK property market sees best February for remortgaging since 2009
The value of remortgage lending in the UK reached £4.4 billion, the largest amount recorded in the month of February for seven years, despite decreasing from January, new data shows. The figures from outsourced property services provider LMS also shows that the number of remortgage loans rose 23% year on year in February but fell by 16% from January and the value of gross remortgage lending is 26% higher than February 2015’s figure of £3.5 billion. Per customer, the average amount of equity withdrawn from remortgaging rose by 11% from £25,955 in January to £28,685 in February. This is the largest amount recorded in the month of February as borrowers continue to take advantage of rising house prices and competitive rates. The average amount of equity withdrawn is also 7% higher than February of last year when it was £26,682. The total amount of equity withdrawn fell by 7% month on month from £859.1 million in January to £798.6 million in February. Total equity withdrawn is however some 31% higher than the £609.8 million recorded in February 2015. ‘Despite a drop in activity from January, a trend we’ve experienced each year since 2010, remortgage lending in February remains buoyant. The value of loans were the largest amount recorded in the month of February for seven years, demonstrating maintained momentum for remortgaging as we return to a healthy, post-recession market,’ said Andy Knee, chief executive of LMS. ‘New rock-bottom rates should encourage even the most hesitant of home owners to consider the benefit of remortgaging, since huge savings can be made. However, there’s a push and pull occurring in the remortgage market at the moment. On one hand we have enticing, rock-bottom rates, and on the other, a looming uncertainty compounded by the possibility of a Brexit and the shaky global economy,’ he pointed out. ‘On the whole, the industry is in agreement that the housing market is unlikely to be unduly affected in the lead up to the EU referendum, although there might be a slight slowdown in house price growth. This means we expect remortgaging growth to continue but we shouldn’t expect a drastic change in activity until after June 2016,’ he added. Continue reading
Increasing demand for prime property in commuter areas in Scotland
Scotland has seen an increased demand for prime property in commuter locations with the housing market as a whole generally improving, according to new research. Scotland’s prime market is expected to grow by 18.8% over the next five years in terms of values, outperforming the overall residential market and in comparison to 22.2% across Great Britain, according to the latest report from real estate firm Savills. However, the prime market between £400,000 and £1 million continues to be constrained outside Edinburgh by the Land and Buildings Transaction Tax (LBTT) which was introduced a year ago, it points out. And after seven years of phenomenal growth, the Aberdeen market is experiencing price falls linked to falling oil prices. ‘While Scotland continues to attract overseas buyers, we are now seeing the return of wealthy home grown buyers, and there were some important trophy country house and estate sales during 2015,’ said Faisal Choudhry, director of Scottish research as Savills. ‘However, one of the most important factors in the Scottish market is the fact that the recovery, which began in prime city locations, is finally established in the suburbs and is beginning to reach more outlying locations,’ he explained. ‘Our latest data reveals today’s house buyers are falling back in love with the Scottish suburbs. This may partially be explained by a dwindling supply of the best homes available to buy in the most sought-after city centre locations,’ he added. While the prime areas like the New Town, Stockbridge and Morningside in Edinburgh and the West End in Glasgow, have been enjoying a strong market over the last five years, outlying areas had been slower to recover. Over the past year, however, there has been a jump in sales across adjacent locations, with the return of the ‘closing date’, and premium prices being paid. ‘We expect this trend to continue and to ripple further outwards to more attainable suburbs, like Liberton in Edinburgh and Netherlee in Glasgow,’ said Choudhry. Property prices are predicted to rise across the UK as a whole this year, but commuter locations are expected to see the greatest growth, with lower fuel costs playing a part. As a result, further outlying areas including Midlothian and locations such as Helensburgh and Kilmacolm are on the upturn. But Choudhry pointed out that there are market risks ahead of the European Union referendum in June and this may result from a drop in buyer confidence. ‘A vote to leave the EU has the potential to offset housing market demand, as an exit is negotiated. However, the impact on values might be mitigated due to low interest rates. Whatever the outcome, there will continue to be a market due to the essential requirements to move house, together with the needs of upsizers and downsizers,’ he said. Continue reading
