Tag Archives: europe
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
UK property prices up almost 8% year on year
UK house prices increased by 7.9% in the year to January 2016, up from 6.7% in the year to December 2015, taking the average price to £292,000, according to the latest data to be published. The index from the Office of National Statistics (ONS) also shows that prices increased by 8.6% in England, by 0.1% in Scotland and by 0.8% in Northern Ireland but fell by 0.3% in Wales. Annual house price increases in England were driven by an annual increase in the South East of 11.7%, then London with growth of 10.8% and the East of England up by 9.8%. Excluding London and the South East, UK house prices increased by 5.1% in the 12 months to January 2016 and on a seasonally adjusted basis, average house prices increased by 0.9% between December 2015 and January 2016. In January 2016, prices paid by first time buyers were 7.7% higher on average than in January 2015 while for owner occupiers prices increased by 8% for the same period. Richard Snook, senior economist at PwC, pointed out that the first ONS housing market figures for 2016 show strong momentum in the UK but he also pointed out that performance has been mixed across the UK. He said that the market has cooled in Wales, Scotland and Northern Ireland, where prices are roughly unchanged from a year ago, whilst growth in the South continues to power ahead. ‘The recent changes to stamp duty, whereby supplementary rates will be charged on purchases of additional homes, may be providing a small boost to the market, as people rush to complete transactions before the changes come into force in April this year,’ he added. Rishi Passi, chief executive officer of Oblix Capital, believes that behind the scenes, an imbalance between supply and demand has been squeezing the bottom end of the market, which together with a rush to beat the April stamp duty rise, has driven up prices and stretched affordability for those taking their first step on the housing ladder. ‘The new Lifetime ISA and Help to Save initiatives will go some way to give entrants to the market a much needed leg up, and with local authorities across England planning 270,000 houses a year over the next 15 years, the Chancellor’s commitments to house building may begin to level the playing field,’ he explained. The figures reveal the sharp regional differences, according to Mark Posniak, managing director at Dragonfly Property Finance, and he said that for annual prices in the South East to have out-performed London underlines an ongoing shift in demand away from the capital as people look for more value elsewhere. ‘London will remain a formidable bastion of the UK's property market but for many its prices are an insurmountable obstacle. With interest rates unlikely to rise this year and the employment market as strong as it is, demand will remain,’ he pointed out. Continue reading
