Tag Archives: news
Easy mortgage access for home buyers in the US tightens
Access to mortgage credit in the United States tightened in the first quarter of 2015, marking a pause in easy accessibility for buyers. It had been getting progressively easier to obtain a mortgage since 2012, but the first several months of this year marked a change, according to according to the latest Zillow Mortgage Access Index (ZMAI). Mortgage credit availability is almost unchanged from a year ago, meaning despite fluctuations from quarter to quarter, there has been little progress toward making mortgages easier to obtain over the last year. In the long term, experts expect mortgage access to continue improving. In a survey earlier this summer of more than 100 economists and housing experts, more than 60% said they expect mortgage regulations to loosen further, with many expressing concern the market will become too lax over the next year. A high number in the Zillow Mortgage Access Index means credit is easier to obtain, while a lower number means credit is tighter. Mortgage credit was easiest to obtain in July 2004, when the ZMAI reached 136.4. But availability tightened over the next few years. In May 2007, both the housing and mortgage availability began a multi year plunge, leaving home values down more than 22% and credit the tightest in recent history. Mortgages were the toughest to obtain in September 2010, when the ZMAI was at 11.8. Today, access to mortgage credit has improved significantly, and is at 65, more than two thirds of the way back to 2002 pre-crisis levels. 'Recent market volatility is causing some lenders to be more cautious in their underwriting. Tighter mortgage access will make it harder for people with low credit scores to get a home loan, and even people who can get approved for a mortgage will have fewer options in terms of available mortgage products,' said Zillow chief economist Svenja Gudell. Continue reading
Apartments near Royal Parks in central London attract high price premium
The selling prices of apartments situation on roads surrounding the five central Royal Parks in London have increased by 172% in the last decade, new research has found. This is compared to prices for other prime properties in London that are not close to this prestigious group of green space that include Regent’s Park, Kensington Gardens, Hyde Park, Green Park and St James’ Park. Hyde Park, which stretches across central London, has seen the greatest rises. Between 2013 and 2014 alone, the premium commanded by properties in close proximity to the park was 23.8%, according to the Parkside premium Report by Dataloft. 'London as a city is rightly proud of its green spaces, which define the centre of London and provide more outside public space than New York, Paris or Tokyo. The Parkside Premium Report mirrors our experience of the market,' said Gary Hersham of Beauchamp Estates. He explained that living next to a park is increasingly a priority for many buyers in the prime London property market.'In 2012, for example, an influx of super luxury developments pushed the premium for living parkside to 32% over other prime central London areas,' he said, adding that close proximity to a Royal Park is a pre-requisite of many high net worth individuals purchasing in London. Hyde Park, in the borough of Westminster, is the most sought after park to live close to. The south side of Hyde Park, driven by key sales in developments such as One Hyde Park and 4-5 Princes Gate, has reportedly achieved sales values of up to £9,000 per square feet and in doing so set record prices in London. The report notes that the north side of Hyde Park has achieved values of around £3,500 per square feet. The north side of the park also has less of a gap between parkside properties and the surrounding areas when compared to the south, with a 43.2% premium to live parkside for the north versus a 67.7% premium for apartment properties on the south. Hersham pointed out that the rise in the premium for parkside properties boosted by UK domestic buyers. Some 26% of those living around Hyde Park also own another home and 38% are within the UK. The report also shows that apartments by the five central London Royal Parks have commanded a premium of 20% in the year 2014/2015, compared to just a 5% premium in 2005. The most marked jump in price premiums for living parkside was between 2006 and 2007, with an 11% rise in premiums. This can be explained by the myriad of luxury developments launched that year such as One Hyde Park, which reportedly set the world record for a penthouse selling price. The report also looks towards the future of this sector of the property market. 'The report shows beyond all doubt the difference that being situated next to a Royal Park can… Continue reading
Latest Help to Buy figures reveals success of flagship UK govt scheme
The UK government's flagship Help to Buy scheme has helped nearly 120,000 people achieve their aspiration of buying a new home since it was created, the latest figures reveal. Since the launch of the Help to Buy equity loan and mortgage guarantee schemes some 80% of scheme completions have been made by first time buyers, with more expected when the government’s Help to Buy ISA launches in December. The data also shows that the average house price under the scheme was £186,000, significantly below the national average and over 110,000 people have bought a home through the scheme with 95% sales outside of London and half for new build homes. This counters fears that the scheme might be loaded against first time buyers and especially those seeking to buy homes outside of the capital city. Over 90,000 have been first time buyers. Together with the government’s Help to Buy: NewBuy scheme, which offers 95% mortgages for those buying new build properties, the number of new home owners has reached over 118,000. Help to Buy is also ensuring the long-term health of the housing market by increasing housing supply, stimulating home building. Half of the homes bought through Help to Buy are new-build properties, helping to contribute to the 36% rise in private house building since the launch of Help to Buy. First time buyers will have a further boost from the Help to Buy ISA, which banks and building societies across the UK will offer from 01 December. Under this scheme, first time buyers can save up to £200 a month towards their first home and the government will boost their savings by 25%, or £50 for every £200, up to a £3,000 bonus. Six major lenders have already signed up to offer Help to Buy: ISAs. These lenders are Barclays, Lloyds Bank, Nationwide, Natwest, Santander and Virgin Money. 'This government is committed to helping people achieve the aspiration of buying their own home, and our Help to Buy schemes have now helped nearly 120,000 working people across the UK do just that,' said Chancellor of the Exchequer George Osborne. 'The stronger economy and financial system means we expect banks to start to exit our Help to Buy Mortgage scheme, and it was introduced in times of financial distress and will come to an end next year in any case,' he pointed out. 'The Help to Buy shared equity scheme goes from strength to strength and our new Help to Buy ISA we’re launching in December will provide generous support to those saving for their first home by providing a government boost on their deposit,' he added. Communities Secretary Greg Clark said it has also helped the construction sector with private house building up by more than a third since the launch of the scheme. Indeed, Home Builders Federation executive chairman Stewart Baseley, said Help to Buy continues to drive demand for new build homes. 'Its success is allowing builders to increase the number of homes… Continue reading
