Tag Archives: real-estate
UK mortgage approvals for homes reaches 18 month high
The number of mortgage approvals for house purchases in the UK has risen to an 18 month high, as the end of summer saw a surge in mortgage lending, according to the latest data from chartered surveyors. There were 69,220 house purchase mortgage approvals in August, some 9.3% higher than the 63,340 approved in August last year, and the highest monthly number since 70,239 in February 2014, the figures from the Mortgage Monitor report from e.surv shows. Compared with July, the number of house purchase approvals has risen 0.7%, from 68,764 approvals. It marks the third consecutive monthly rise in approvals, with mortgage lending steadily improving every month since the General Election in May. The firm says that this improvement also comes despite growing certainty over the likely course of interest rates in the UK, with the Governor of the Bank of England, Mark Carney, reporting that global economic uncertainty, in particular the slowdown in China’s economy, is likely to have little impact on when the bank's Monetary Policy Committee chooses to raise the base rate from 0.5%. 'Weak inflation and recovering wages mean that more British workers are able to meet the stringent affordability requirements demanded by the new MMR rules and obtain the mortgage they want,' said Richard Sexton, a director of e.surv chartered surveyors. 'This latest resurgence of demand is pushing up prices. What’s more, banks are supporting those borrowers that need finance, and many record low rates remain. It‘s a good time for many potential new buyers to get a mortgage and think about taking a first step on the ladder,' he explained. 'Concerns over an interest rate rise may have helped push some borrowers into acting quickly. However, this is now the third consecutive month of growth, and home lending has been strong since May, now that the uncertainty that surrounded the election has evaporated. Healthier mortgage lending reflects a stronger UK economy and an upturn in fortunes for British buyers,' he added. The data also shows that August saw the number of small deposit borrowers, that is those with a deposit worth 15% or less of their properties’ total value, rise in absolute terms to reach a post-recession high. There were 11,975 small deposit house purchase loans approved in August, up 7.5% compared with 11,140 in July and 6.2% up on August 2014. It was the best month for small deposit house purchase lending since April 2008. Small deposit borrowers now represent 17.3% of all house purchase mortgage approvals, the highest proportion since September 2014 and significantly higher than in July 2015, up 16.2% month on month. Sexton pointed out that the latest First Time Buyer Tracker from Your Move and Reeds Rains reported that July saw 29,700 first time buyer sales, the highest number since August 2007. 'First time buyers have… Continue reading
Average UK buyer wants a three bed home priced at around £200,000
The average UK home buyer has a budget of £205,221, has owned two properties in their lifetime and is most likely to buy a three bedroom semi in the suburbs, new research shows. Most buy with a spouse or partner with just 18% buying alone and of those aged 18 to 24 some 17% buy their first home with friends, according to the study by Sarah Beeny's estate agency Tepilo. Who people buy with varies from region to region, with those from Wales most likely to buy alone at 35%, followed by those in the South East at 28% and Yorkshire at 27%. Least likely to purchase solo are those from the North East where only 3%do so and London where it is 12%. Location of a property is the most important consideration for buyers with 65% naming it as the top priority followed by 56% stating the number of bedrooms is crucial and 41% the garden. Some 34% believe the layout of the property is important, 29% having a kitchen dining room and 19% want a downstairs toilet as a priority, the research also found. When considering the location of a property, buyer rate good transport links as the most important deciding factor at 56%. Being close to shops and supermarkets is key for 44% and a low crime rate for 39%. A good local pub is an important factor for 23% with 35% of 18 to 24 year olds rating it as one of the top things they look for when buying a home. Those from the East Midlands are most keen on a local with 33% of them saying a good local pub is essential when buying a property. Having family and friends nearby is vital for 36% but this rises to 65% amongst people from the North East and drops to just 22% of those from the South West and 23% in London. Three bed properties are the most popular with 45% of buyers going for this size of property while 27% seek a two bedroom home. Indeed a two bedroom property is the most popular in the North East and Scotland where 48% are after this kind of home. A further 18% opt for a four bed, with less than 5% buying studio and one bedroom properties. The age of 44 is when most buyers think they have moved to their ideal home that they will spend the rest of their lives in, although 20% don't think such a thing exists, which rises to 33% of those aged 55 and over. The research also found that 32% have bought a property as an investment, rising to 41% amongst those aged 35 to 44. Some 45% of buyers who have invested in property bought the home for their children to live in whilst at university. In addition, 24% who invested in property did so as an alternative to a traditional pension. 'We've introduced the Tepilo Buyer Barometer survey to gauge how British house buyers… Continue reading
Prime London rental market affected by financial market jitters, says new report
Annual rental value growth in the prime central London property market fell to 2.5% in August as demand remained subdued over, probably due to financial market jitters, a new report suggests. The analysis from international real estate firm says that as a significant proportion of tenant demand in prime central London derives from companies, in particular financial services, it should be no surprise that volatile global stock markets continued to affect sentiment in August. Rental values rose 0.1% from July, however quarterly growth was 0.2%, the lowest three month change since April 2014. Prime gross rental yields edged back up to 2.96% from 2.95% in July. Tom Bill, head of London residential research at Knight Frank, pointed out that there is a correlation between rental values in prime central London and the performance of the FTSE 100 and the recent stock market dip has been due to concerns over the state of the Chinese economy, with weak manufacturing data and the recent devaluation of the Yuan increasing nerves. ‘Despite the recent volatility, the devaluation should be seen in its historical context and China has several levers it can pull in an attempt to calm stock market falls that aren’t necessarily a reflection of its underlying economic health. The result is more subdued corporate activity and fewer relocation agents currently active in prime central London,’ he explained. He also pointed out that new tenancies in recent weeks have been UK based families that are moving from one neighbourhood of London to another. In the three months to July this year, the number of new applicants fell by 15% compared to the same period in 2014, while viewing levels were down 12.6% and the number of tenancies agreed declined by 12.1%. Meanwhile, the rentals market is still affected by distortions in the sales market following the general election, Bill also pointed out. ‘Some vendors have delayed selling and are exploring the rental option as they wait for stronger house price growth to return after a stamp duty increase in December for properties worth more than £1.1 million dampened growth,’ he said. ‘The result is more rental stock on the market, which has led to prospective tenants making offers on multiple properties, meaning deals are harder to finalise,’ he added. Continue reading
