Tag Archives: london
US foreclosure figures tailing off, latest data suggests
The foreclosure crisis is over in the United States but the distress caused by the housing bust is still lingering, according to the latest report from housing data firm RealtyTrac. Foreclosure filings were reported on 116,913 properties in August, an increase of 7% from the previous month but still down 9% from a year ago, the smallest decrease in the last 47 consecutive months of year on year declines in US foreclosure activity. A total of 51,192 properties were scheduled for foreclosure auction during the month, down 1% from the previous month but up 1% from a year ago, the first annual increase in scheduled foreclosure auctions following 44 consecutive months of annual decreases. Scheduled foreclosure auctions in judicial foreclosure states where foreclosures are processed through the court system increased 5% from a year ago. ‘The August foreclosure numbers demonstrate that although the foreclosure crisis is well behind us, the messy business of cleaning up the distress lingering from the housing bust continues in many markets,’ said Daren Blomquist, vice president at RealtyTrac. ‘The annual increase in foreclosure auctions, the first since the robo-signing controversy rocked the foreclosure industry back in late 2010, indicates mortgage servicers are finally adjusting to the new paradigms for proper foreclosure that have been implemented in many states, whether by legislation or litigation or both,’ he added. Scheduled foreclosure auctions increased from a year ago in 24 states, including Colorado with a rise of 160%, Oregon up 117%, Connecticut up 81%, New York also up 81%, Oklahoma up 72%, New Jersey up 71%, Illinois up 25%, South Carolina up 21% and Maryland up 17%. The report also shows that more than 55,000 properties started the foreclosure process in August, up 12% from previous month and flat from year ago. It was the second consecutive month where foreclosure starts have increased on a month on month basis. Foreclosure starts, which in some states are the scheduled foreclosure auctions, increased from a year ago in 19 states, including Oklahoma up 147%, Indiana up 136%, New Jersey up 115%, Massachusetts up 55%, Florida up 24% and Maryland up 20%. Lenders repossessed 26,343 properties via foreclosure (REO) in August, up 2% from the previous month but down 33% from a year ago. It was the 21st consecutive month where REO activity declined on a year on year basis nationally. REOs increased from a year ago in seven states, included Georgia up 146%, Hawaii up 42%, Oregon up 20%, Pennsylvania up 12% and Connecticut up 10%. Six of the nation’s 20 largest metro areas posted year on year increases in foreclosure activity. In Washington, D.C. there was a rise of 18%, New York up 18%, Baltimore up 12%, Atlanta up 11%, Philadelphia also up 11% and San Francisco up 2%. Among the nation’s 20 largest metros those with the five highest foreclosure rates were Miami with one in every 359 housing units with a foreclosure filing, Tampa one in every 407 housing units, Baltimore one in every 17 housing units,… Continue reading
London and South East skewing average house price figures, latest index shows
The average property price in England and Wales has reached £274,302 but this drops to £185,496 if London and the South East are removed, the latest monthly index shows. This means that these two regions are skewing average house prices by a record £89,000, the biggest disparity since 1995, according to data from the LSL Property Services index. It is due to cooling house prices in some regions and the figures shows that the slowdown outside of London and the South East on an annual basis has dropped to 4.3%. This contrasts with average house price growth of 10.7% in the past year across all of England. On a monthly basis prices have increased by 0.9%, according to the data from the August index report. According to Richard Sexton, director of e.surv chartered surveyors, part of LSL Property Services, a game of two halves is being played out in the UK property market. ‘In terms of average house price growth, a gap has developed between the South East corner and the rest of the country. If we exclude the key players of London and the South East from the game, a whole different playing field is revealed,’ he said. ‘House prices across the remaining parts of England and Wales have only increased 4.3% in the past year, or less than half of the overall measure of 10.7% when we include London and the South East. In absolute terms the difference would seem to add £88,806 to the average price tag for a home across England and Wales, the highest absolute difference since 1995,’ he explained. ‘This obscures cooler prices in much of the country. Further afield, it is critical that support mechanisms like Help to Buy aren’t dismantled. In July, house price growth slowed across all regions except for London, the South East and East Anglia. While these three regions continue to set new house price highs, the rest of the country is nowhere near these levels of growth,’ he added. Sexton also pointed out that compared to the nadir of 2008/2012, activity in the housing market has improved, but is not completely out of the woods yet, and still needs to recapture some of the vitality of its pre-recession health. ‘There is also much more to be said beyond the headlines for London. The annual rate of growth in London house prices is the fastest witnessed since 2000. Most recently we’re seeing asking prices in the capital start to be reined in, which will apply the brakes on annual house price inflation as the market steadies,’ said Sexton. ‘What’s happening in London may be eye-catching, but it is akin to looking through a kaleidoscope and skews any view of the current total housing landscape. Peeling back the regional layers gives a much more informed view of the core reality of the current housing market,’ he added. ‘With evidence of London starting to cool off after strong growth earlier in the year, it is critical that the underlying momentum… Continue reading
House purchases rather than remortgages driving UK home lending market
The mortgage market in the UK remains driven primarily by lending for house purchase, rather than remortgage, according to the latest data from the Council of Mortgage Lenders. There were 30,200 first time buyer loans in July, up 3% from June and 25% up on July 2013. By value, there was £4.6 billion of lending to first time buyers in July, some 10% up on June and 39% higher than July last year. Lending to home movers also grew. In July, the number of loans advanced to movers was 37,500, 15% up on the previous month and 19% on July last year. By value, lending to movers totalled £7.2 billion, 20% up on June and 31% up on July last year. Remortgage lending remains muted compared with both first-time buyer and home mover lending. The number of remortgages in July was 4% up on June but 15% down on July last year. The value of these loans at £3.9 billion was up 3% on the previous month and down 5% on July last year. Buy to let lending grew 9% over the month to £2.4 billion in July, and an increase of 26% from £1.9 billion in July last year. House purchase lending to home buyers increased month on month in July totalling 67,700 loans, up 10% compared to June and the value of these loans totalled £11.8 billion, a rise of 15% on June. Compared to July 2013, the number of loans increased by 21% and the value of lending by 33%. The typical loan size for first time buyers continued to rise to £127,500 in July, up from £123,750 in June and the highest average loan size for a first time buyer on record. The typical gross income of a first time buyer household also grew to £38,900 in July compared to £37,095 in June. First time buyers' in July paid 19.6% of gross income towards covering capital and interest payments, up from 19.3% in June, but still significantly less than the recent peak of 24.8% in December 2007. Home movers typically borrowed 3.03 times their gross income in July, compared to 3.08 in June. The typical loan size for home movers was £156,000 in July, up from £153,800 in June. The typical gross household income of a home mover was £54,400 in July compared to £52,000 in June. ‘The market has shown steady growth in house purchase and buy to let over the past few months with general improvements in economic factors across the UK allowing for more people to enter the property market,’ said Paul Smee, director general of the CML. ‘There have been many factors over the past year that could have caused disruption but the market has remained resilient and lenders have shown themselves adaptable to all this change. The CML will continue working towards making sure future initiatives affecting the market, such as the European Mortgage Credit Directive, are introduced with equally minimal disturbance to borrowers and lenders,’ he added. Continue reading
