Tag Archives: yahoo
Mortgage arrears and repossession downs in the UK, latest data shows
The proportion of UK mortgages in arrears or ending in repossession fell in the first quarter of this year, according to the latest figures from the Council of Mortgage Lenders. A decline was experienced in all arrears bands, and across both owner occupier and buy to let lending. The total proportion of all mortgages with arrears equivalent to more than 2.5% of the mortgage balance was 1.03% at the end of the first quarter, down from 1.05% in the fourth quarter of 2014, and well down on the 1.24% recorded at the same time last year. In numerical terms, there were 113,900 loans in arrears. Of these, just 24,400 were in the most severe arrears band at more than 10% of balance, equating to 0.22% of all mortgages. This is the smallest number and proportion of mortgages in the most serious arrears band since the end of 2008. The proportion of mortgages resulting in repossession in the first quarter was 0.03%, down from 0.04% in the fourth quarter of 2014 and 0.06% in the first quarter of last year. The number of repossessions was 3,100, down from 4,200 in the fourth quarter of last year, and 6,400 in the first quarter of 2014. ‘Although complacency would be misplaced, the underlying picture continues to be one of improvement and a continuing reduction in mortgage arrears and repossessions,’ said CML director general Paul Smee. ‘The message remains the same: don't delay in contacting your lender if you are experiencing temporary payment problems, as lenders want to help you resolve them, and will only take possession of property as a last resort,’ he added. Meanwhile, the latest figures from the Finance and Leasing Association (FLA) show that the number of second charge mortgage repossessions fell 45.3% in the first three months of 2015, compared with the same period last year. ‘Second charge repossessions are continuing to fall as second charge lenders continue to do all they can to help customers in financial difficulty,’ said Fiona Hoyle, head of consumer credit at the FLA. Continue reading
Office rental growth hits record highs in South East of England
Vacancy rates across the South East of England office market are at their lowest since 2001, driving rental growth to hit record highs in towns across the region, new research shows. The M25 vacancy rate stood at 5.9% in the first three months of 2015 but this falls to 4.2% when only new and Grade A space is analysed, low by London, UK and global standards, says the data from the latest office leasing report from Knight Frank. It also shows that availability fell by 13% compared to a year ago, across all grades of stock, moving the market back towards the landlord’s favour. Following the re-election of a Conservative led Government and financial market rally, economic performance of the region is improving and there is an expectation of a further boost to demand, it points out. Strong investor demand and a lack of deliverable product is holding back stock volumes in the investment market, where we are seeing a hardening of yields across the spectrum, with investors increasingly factoring in likely rental growth during hold periods. Prime yields now stand at 5.00% NIY and the combination of weight of money and lack of product is expected to drive yields down further moving forward in 2015. ‘2015 has started positively supporting our view that take up in the M25 will be almost 30% ahead of 2014, and above the 10 year average,’ said Emma Goodford, head of national offices leasing team, Knight Frank. ‘Vacancy levels are heading towards crunch point in combination the market seeing rental growth across a growing number of key centres. In some cases rents are now at an all-time high- motivation for occupiers to identify and secure the best space now. The election has removed uncertainty and will drive demand,’ she added. According to Tim Smither, head of South East investment, Knight Frank, the investment market continues to strengthen, with prime yields standing at 5% NIY. ‘We expect this yield compression to continue for the rest of the year, driven by a combination of a lack of stock, significant levels of equity looking to be deployed and anticipated rental growth in most core markets,’ he said. Continue reading
Metro home prices in the US continued to accelerate in first quarter of 2015
Stronger demand combined with lagging inventory levels caused home prices in the US to accelerate in many metro areas during the first quarter of 2015, new data shows. And the number of areas experiencing double digit price appreciation doubled compared to last quarter of 2014, according to the latest quarterly report by the National Association of Realtors. The median existing single family home price increased in 85% of measured markets, with 148 out of 174 metropolitan statistical areas (MSAs) showing gains based on closings in the first quarter compared with the first quarter of 2014. However, 25 or 14% recorded lower median prices from a year earlier but the number of rising markets in the first quarter was mostly unchanged compared to the fourth quarter of last year, when price increases were recorded in 85% of metro areas. Then data also shows that 51 metro areas or 29% experienced double digit increases in the first quarter of the year, a sharp increase from the 24 metro areas in the fourth quarter of 2014 and above the 37 that experienced double digit increases in the first quarter of 2014. According to Lawrence Yun, NAR chief economist, after moderating to healthier levels of growth at the end of 2014, prices picked up in several metro areas during the first quarter. ‘Sales activity to start the year was notably higher than a year ago, as steady hiring and low interest rates encouraged more buyers to enter the market. However, stronger demand without increasing supply led to faster price growth in many markets,’ he explained. ‘Sales could soften slightly in some of these markets seeing sharp price appreciation unless housing supply markedly improves and tempers its unhealthy level of growth,’ he added. The national median existing single family home price in the first quarter was $205,200, up 7.4% from the first quarter of 2014 when it was $191,100. The median price during the fourth quarter of 2014 increased 5.8% from a year earlier. Total existing home sales, including single family and condo, declined 1.8% to a seasonally adjusted annual rate of 4.97 million in the first quarter from 5.06 million in the fourth quarter of 2014, but are 6.2% higher than the 4.68 million pace during the first quarter of 2014. At the end of the first quarter, there were 2.00 million existing homes available for sale, slightly above the 1.96 million homes for sale at the end of the first quarter in 2014. The average supply during the first quarter was 4.6 months, down from 4.9 months a year ago. A supply of six to seven months represents a healthy balance of supply between buyers and sellers. ‘Home owners throughout the country have enjoyed accumulating household wealth through the steady rise in home values in the past few years. However, some homeowners are hesitant to move-up and sell because they aren't confident they'll find another home to buy,’ said Yun. ‘This trend, in addition to subpar home building… Continue reading
