Tag Archives: crisis
Greater London sees fall in home lending in first quarter of the year
There was a decline in in house purchase lending in Greater London in the first quarter of 2015 but increased remortgage activity, according to the latest regional data from the Council of Mortgage Lenders. First time buyers in Greater London borrowed £2.4 billion representing 10,100 loans, down by 16% in value and down 16% in number of loans compared to the last quarter of 2014. Compared to the first quarter of 2014, the total number of loans was down 14% and the amount borrowed decreased by 11%. Home movers saw a decrease in numbers to 7,200 loans advanced in the period, valued at £2.5 billion, which was down 18% by volume and down 15% by value on the previous quarter. Year on year comparisons show a decrease of 18% by volume and down 11% by value. Remortgage lending increased totalling 10,800 loans at £2.9 billion, which was up 10% by volume and up 13% by value. Compared to the first quarter of 2014, remortgage lending in London was up 2% by volume and 8% by value. According to Peter Rollings, chief executive officer of Marsh & Parsons, the lending market has calmed down from the heady heights of 2014 and the general election earlier this month also had an impact. ‘But cheaper mortgage rates are now making waves in the market, and with the wealth of products now available, we can expect this to ripple out into a stronger summer of lending,’ he said. He believes that the election result means political certainty and that along with a greater choice of homes on the market, and incentives like reduced stamp duty and Help to Buy support schemes at the lower rungs of the ladder will keep the market going. Continue reading
Pre-election jitters saw UK asking prices fall by 0.1% in May
There was an unseasonal drop in new seller asking prices in the UK in May, down by 0.1%, and the first fall in the month of May for five years, the latest index shows. This means that the average price of a home fell to £285,891 but prices are still up 2.5% compared to a year ago, although this annual rise is down from 4.7% in April, according to the latest date from Rightmove. The firm suggests that some sellers coming to market were forced to price more aggressively due to buyer uncertainty over the general election outcome so the fall was very much a short term one and asking prices are expected to bounce back again. ‘The unexpected outcome of a majority government has released the brakes on buyer confidence and activity, and will exert some upwards price pressure in the coming months,’ said Miles Shipside, Rightmove director and housing market analyst. He explained that the new government faces the long term challenge of delivering on an election promise to build 275,000 new affordable homes in the term of the current parliament. And he pointed out that the current shortage of suitable property for sale, meant that even the election uncertainty only caused prices to drop in three out of the 10 regions, London, which would have been hit hardest by mansion tax, the North East and Yorkshire and the Humber. He also warned that sellers who think they have the upper hand due to the lack of property for sale should be aware that a surge of new competition could be on the way, giving buyers some extra negotiating power. In the three months after the May 2010 election there was a 17% jump in the number of properties coming to market compared to the previous quarter. With a majority government in power and record spring traffic on Rightmove, early indications from estate agents suggest that the next quarter could see another surge in property coming to market. ‘Buyers should note that there is often a surge of property supply after an election, as those who have held off coming to market decide to take the plunge. Many potential sellers may have held back expecting a period of hung parliament uncertainty, but they could now decide to catch the late spring market,’ said Shipside. ‘ In a traditional tight stock market an increase in supply of available property and greater competition among sellers to attract buyers may moderate their price expectations and make them more open to an offer,’ he explained. ‘The previous election saw jumps in new seller numbers in all regions of the country, with London and Wales leading the way with over 20% more properties coming to market. There may be a window for buyers to act now in this late spring market before prices rise in the next few months,’ he added. Continue reading
UK lettings agents and landlords surprised at proposal for mandatory licensing
The private rented sector in the UK said it is surprised about proposals to introduce a mandatory licensing system due to be in the Queen’s Speech later this week at the opening of the new parliament. Prime Minister David Cameron said in his speech on immigration last week that landlords throughout the country will be required to check the status of immigrants who rent their property following a pilot in the West Midlands. But, without giving details, he also said that a new mandatory licensing scheme will be introduced along with new rules allowing landlords to evict illegal immigrants more quickly. ‘We’ll also crack down on the unscrupulous landlords who cram houses full of illegal migrants, by introducing a new mandatory licensing regime. And, a bit like ending jobs when visas expire, we’ll consult on cancelling tenancies automatically at the same point,’ he said. Landlord and letting organisations are concerned and are waiting for details which are likely to be in the Queen’s Speech on Wednesday. ‘We are pleased to see the Government listened to our housing manifesto calls for greater regulation of the private rented sector. However, whilst this is a step in the right direction, it’s not the full solution to the problem of rogue agents plaguing the market,’ said David Cox, managing director of the Association of Residential Lettings Agents (ARLA). ‘We urge the Government to take this opportunity and impose more appropriate, over-arching regulation on the whole lettings industry. We look forward to hearing the full details of the plans in the Queen’s Speech,’ he added. The Residential Landlords Association said it has writing to immigration minister James Brokenshaw asking for an urgent meeting to discuss the proposals. ‘No form of universal licensing of rented property is proven to capture the most unscrupulous landlords. As so often, the devil will be in the detail,’ said RLA chairman Alan Ward. Continue reading
