Tag Archives: investment
Number of buy to let mortgage products available in UK rise significantly
The number of buy to let mortgage products available in the UK increased significantly in the first quarter of 2016, particularly for landlords with a limited company. The introduction of more products targeted at limited company borrowers saw the average product numbers for buy to let mortgages increase from 963 in the final quarter of 2015 to 1,105 in the first three months of 2016. Data from the latest index from Mortgage for Business also shows that remortgages yet again outstripped purchases in all categories with the exception of HMOs, where purchase numbers were slightly higher. ‘With tenants looking for less expensive accommodation and landlords looking for higher yields it is no surprise that the number of HMO purchases has risen in the last quarter,’ said David Whittaker, managing director of Mortgages for Business. ‘Even though remortgage transactions were higher this is not to say purchase numbers were down. All types of residential investment showed a marked increase in the number of purchase transactions as investors rushed to beat the 3% stamp duty surcharge deadline,’ he pointed out. The index report also shows that yields for semi commercial property also rose in the first quarter of 2016 making it the second highest yielding property type. Whittaker predicts that the number of landlords purchasing semi-commercial property is set to rise in the coming months as mixed use properties are technically classed as a commercial premises and as such will not be liable for the 3% stamp duty surcharge. Continue reading
Asking prices rise across the UK apart from in London
Asking prices increased in all parts of the UK except London, up 0.5% month on month, according to the latest property index to be published. The East of England saw the largest monthly rise of 1% as demand continues to outweigh supply in the region but overall the annual home price for England and Wales fell to 7.5%, the data from the Home.co.uk index shows. The report suggests that typical time on Market figures in the East of England, the South East and Greater London are contrary to seasonal expectations, and this is a clear indicator that the anticipated slowdown is taking hold as demand dips, at least for the time being, while the market pauses for breath. The total stock of property for sale remains historically very low indeed despite gradually rising supply in London and Scotland. In all English regions outside of London and in Wales, scarcity holds firm as the key market driver. Overall, the number of properties entering the UK market is down 6% compared to a year ago. The supply shortage is most keenly felt in the West Midlands where 12% less new stock arrived on estate agents' books during last month compared to March 2015, and this will ensure prices in this region keep rising over the summer months. Similarly, the South West of England supply shortage is worsening as indicated by 11% less stock being registered on agent portfolios last month. The index report point out that market activity in the formerly lacklustre North East shows signs of significant improvement. There and in the North West, marketing times have reduced considerably and prices are on the rise. The North West market is improving more quickly as supply levels in this region indicate a new declining trend and consequently prices may show further significant upward progress across the rest of the year. Meanwhile, the Welsh property market remains the poorest performer. Prices there have fallen by 0.2% over the last six months and marketing times are higher than in any English region or Scotland. ‘Overall, the current mix-adjusted average asking price for England and Wales is now 7.5% higher than it was in April 2015, and we predict further rises over the next few months due to worsening supply in an increasing number of regions. However, the year on year rise is expected to attenuate as the London market cools,’ said Doug Shephard, the firm’s director. He explained that a buy to let stampede ahead of the new stamp duty charges means that growth might now slow. ‘Any sort of lull in demand from investors will be welcomed by first and next time buyers, especially those who had the wisdom to sit on their hands until the dust settled,’ he said. ‘The current figures suggest that London will be the best area to take advantage of waning demand and rising supply, but prices today remain very high and properties will need to hang around on the market much… Continue reading
Property market activity soars in England and Wales in March due to stamp duty change
Property sales in England and Wales have seen their strongest March for nine years with transactions up 30%, some 80,000 home sales, the latest index data shows. House price growth also accelerated, up 6.9% year on year and 0.6% month on month, taking the average price to £291,650, the figures from the Your Move house price index also shows. It means that a typical home is now worth £18,745 more than a year ago. When London and the South East are left out of the calculation prices were up 5.1%, suggesting that the market is still strong outside these two growth areas. Indeed, the London market saw the fastest growth of any region as house prices rose 8.2% or £44,548 year on year. Bath and North East Somerset saw the largest March pick-up in property prices, climbing 5.3% or £18,603 month on month According to Adrian Gill, director of Reeds Rains and Your Move estate agents, the impending stamp duty rise for additional properties that was introduced at the start of April helped March record the strongest homes sales for the month since 2007. ‘The surge was widespread across England and Wales. This goes beyond any normal seasonality, with second home and buy to let investors rushing to beat a bigger tax bill,’ he explained. Overall some 73% of local authorities in England and Wales experienced a monthly upswing in home values, the highest proportion of areas seeing positive property price rises since July 2014. ‘This will be welcome news for homeowners, who now have a fantastic opportunity in the current sellers’ market. The pervasive shortage of homes on the market is still driving up values, as buyers have to compete for each available property. If they are going to make it easier to get a foot on the property ladder, the Government will have to double down on its help to first time buyers, or let up on landlords,’ said Gill. He also pointed out that after a bit of a downturn over the winter months, the London property market is growing again with prices up 8.2% higher than a year ago. ‘The lift in London’s house prices seems steep. But we’re actually in a much calmer position than previous years, with the current rise still well below London’s record 20.6% year on year growth, established in July 2014,’ Gill said. He also pointed out that the growth in London property values means it is once again pulling away from the rest of the country, with London and the South East now dragging up national house price growth by 1.8%, double the rate seen at the end of 2015. ‘As a result, we’ve returned to a two speed housing market, as growth in the rest of the country is easily outpaced by London and the South East. But it’s not all about London, as house prices are still advancing in the Northern cities, with the average… Continue reading
