Tag Archives: real estate
UK lenders and brokers concerned about new European mortgage directive
Almost three quarters of mortgage brokers in the UK, some 74%, are worried about the impact of the incoming European Mortgage Credit Directive (MCD) on overall lending activity over the next year. A similar number of lenders, 71%, take the same view as MCD implementation approaches, with a six month window from 21st September to 21st March to adopt the new rules, according to new research from the Intermediary Mortgage Lenders Association (IMLA). Unlike last year’s Mortgage Market Review (MMR), many of the MCD changes are of a technical nature involving new approaches to disclosure and documentation rather than major changes to advice, affordability criteria or lending decisions for residential mortgage borrowers. Nevertheless, 40% of brokers believe a smooth implementation of the MCD will be more challenging for the industry as a whole than MMR, including 11% who believe it will be significantly more challenging. The majority of lenders, 71%, believe it will be at least as challenging for industry to implement MCD and this includes 21% who believe it is more of a challenge, although 28% feel it will be less challenging. The UK government has openly questioned the benefits of MCD to UK consumers beyond the high level of protection offered by the existing FCA regime, and its approach to the negotiation and implementation of the MCD has been to minimise the impact on the UK market as far as possible. And the IMLA research also shows industry remains sceptical about a number of incoming changes in the lead up to implementing the MCD. Just 5% of brokers felt the introduction of a second APR will benefit the UK mortgage market, while 70% disagreed, as did 86% of lenders. Similarly, just 9% of brokers feel that replacing the Key Facts Illustration document (KFI) with the European Standard Information Sheet (ESIS) is a beneficial move while 68% disagree. Lenders were again stronger in their opposition with 86% disagreeing that the switch from KFI to ESIS will benefit the market. The research also shows that broker sentiment about market conditions at the midway point of 2015 was broadly consistent with the start of the year, with 50% feeling conditions are improving, compared with 51% in January. This is slightly improved from July 2014 when 46% felt the same. The report notes that 67% of lenders feel conditions are currently improving, up from 53% at the turn of the year and just 44% last summer. IMLA’s research suggests ‘standard’ borrowers and first time buyers have both benefitted from improving access to mortgage finance as the market has adjusted to the MMR requirements. During the first half of 2014 some 34% of brokers had been unable to find a suitable product for at least one standard borrower, but just 25% have reported the same in the first half of 2015. Similarly, 28% had been unable to help at least one first time buyer enquiry in the first six months of last year, but just 20% had this… Continue reading
Three year study says self builders in UK struggle to fulfil their dream home
Even people with the means to build their own home are struggling to do so in the UK in a housing sector dominated by traditional models of construction and ownership. According to a new report from Goldsmiths, University of London, despite the government wanting to encourage more people to build their own home and the huge popularity of the television programme Grand Designs, it is only those with access to certain things that ever end up fulfilling their dream. Dr Michaela Benson of the university's Department of Sociology at Goldsmiths, spent three years studying self building as a form of housing provision in the UK and examining the changing context of housing in Britain, from supply through to regulation, and the role this plays in contemporary self build. She conducted numerous interviews with those who have created their own homes, offering a personal, sociological, focus in contrast to most policy or industry led research and found that self build is a housing option only really open to those with social, cultural and economic capital as well as existing skills and knowledge. This is in contrast to the vision of Walter Segal and his self build projects in 1970s Lewisham, which saw men and women from a range of backgrounds come together to learn skills and create new communities, with dwellings that were quickly and cheaply built as well as environmentally friendly. Dr Benson has explored a diverse range of paths into self building, from community focused projects to self builds that weren’t planned but became necessary to families whose former houses had deteriorated to the extent to which the only solution was to knock them down and start again. She also found that while access to financial resources are a necessity in order to become a self-builder, even those with capital find that the housing sector and related industries just aren’t geared towards their needs. Many self builders seek new specialist materials, particularly those that reduce energy consumption for their homes, but have difficulty finding people with the expertise to install them. Self build mortgages are just as hard to procure. It’s apparent that more extensive adaptation of services and products to the needs of self-builders would be valuable if the industry is to be scaled up, Dr Benson argues. She says that the population of self builders can and should be more diverse. 'Although the majority of self build projects result in home ownership, the community self build sector also promotes self build for social or private rent, while some innovative schemes such as LILAC centre on mutual home ownership,' she said. 'These are an important part of the housing landscape that present real opportunities to challenge the system of house buying and tenure as it currently stands. Self building could challenge the dominant modes of housing procurement and a market oriented towards home ownership and profit making,' she added. The report includes a number of recommendations aimed at shaking up the traditional housing sector and making self building a more… Continue reading
Planning consent for new homes in New Zealand up 24% annually
The new build property sector in New Zealand is growing with planning consents up 24% in July compared with a year ago, the latest data shows. Overall there were 2,824 new dwellings consented nationally, the highest number since march 2005, according to the figures from Statistics New Zealand. It was boosted by apartments and town houses, flats, and units and Waikato led the growth with consents up 40% while Auckland saw growth of 31%, well above the national average. The total value of consents for all buildings in July 2015 was $1.4 billion, with some $976 million for residential buildings and $455 million for non-residential buildings. The data also shows that over $4 billion worth of building work was put in place in the June 2015 quarter, up nearly 8% on the June 2014 quarter, the highest quarterly value recorded in the 50 years since the series began, and represents almost $900 worth of building work per person. 'The value of both residential and non-residential building work increased overall. In Auckland, residential work grew, while in Canterbury most of the growth was in non-residential work,' said Statistics New Zealand business indicators manager Neil Kelly. After removing price changes and seasonal variations, the overall volume of building activity increased 1.6% following a 1.8% increase in the March 2015 quarter. Within this, the volume of non-residential work increased 5.2% while residential work fell 1%. The volume trend for non-residential building activity reached a new high in the June 2015 quarter, exceeding levels last seen in the March 2006 quarter. Meanwhile, the residential building activity volume trend is still 8% lower than the June 2004 quarter peak. The overall building activity volume trend grew to a level last seen 10 years ago in the June 2005 quarter, the previous series peak. Continue reading
