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Buy to let lending outpacing residential loans, new analysis suggests
Buy to let lending in the UK increased by 20% year on year in the first three months of 2015, outpacing residential lending which was up by just 1.6%, a new analysis shows. Total lending for the quarter stood at £36.2 billion, a year on year increase of 5.4%, according to an analysis report from Equifax Touchstone which covers 92% in the intermediated lending market. The data also shows that the average value of each mortgage was £177,060 for residential compared to £170,730 in the final quarter of 2014, and £151,033 for buy to let compared to £145,017 in the previous quarter. March was the top sales month for mortgage brokers in eight years. Lending was up 24.3% on February 2015, reaching £15 billion. The market saw UK wide improvement with only two postcode areas, Perth and the Western Isles, reporting negative growth during the period. However, despite growing lending levels, the number of active brokers in the market has fallen in the last 12 months, down from 8,288 in the first quarter of 2014 to 8,028 in the first quarter of 2015. The firm says that this market consolidation makes it even more important for mortgage providers to identify which networks and firms are leading the charge and successfully responding to the rapidly changing mortgage landscape and the requirements of the Mortgage Market Review. ‘In March we saw lending power ahead and the sluggish trend witnessed at the end of last year has been reversed. There have been lingering doubts over the market recovery and it is encouraging to see such positive growth,’ said Iain Hill, Equifax Touchstone relationship manager. ‘While traditional savings accounts continue to offer low returns, savers are looking for alternative ways to invest their money, prompting substantial growth in the buy to let market. An oversupply of people and an undersupply of homes makes buy to let an attractive proposition and we expect this trend to continue to gather pace over the coming months,’ he added. Separate research by Paragon Mortgages has revealed that intermediaries are writing more mortgage business with longer term initial rates. The results from the specialist lender’s quarterly intermediary tracking survey for the first quarter of 2015 shows 30% of cases were for terms of five years or more trackers and fixed rates, up from 26% in the previous quarter. At the same time, there was a reduction in two and three year terms, dropping from 71% to 66% and intermediaries have reported a decline in popularity of tracker rate products since the middle of 2012. Survey results showed a continuous fall from the third quarter of 2012 to the second quarter of 2014. However, this trend appears to be shifting, with tracker products accounting for 18% of cases in the first quarter of 2015 compared to 15% in the previous quarter. Despite the modest improvement in the sale of tracker products, fixed rates continue to be the most popular with intermediaries recommending a… Continue reading
UK dream home is in the South West and less than 10 years old
The UK’s dream home would be a four bedroom detached property by the sea in South West England that is less than 10 years old, according to new research. Indeed some 31% of those surveyed would like a modern home and a home in the countryside is a popular choice, which 39% said they’d like and just 6% said their perfect place would be in a city. The South West was the most desired part of the country to reside where 26% would choose to live, according to the research from AA Home Membership. However, the research also revealed that if money were no object, many people would choose to stay in their local area. For example, 69% of Scots say their dream home would be in Scotland and 71% of Welsh respondents would stay in Wales. But it wasn’t a trend that extended to the whole of the country. Some 35% of those living in the West Midlands would like to live in the South West while 29% would choose to stay put. Similarly, 20% of respondents living in the East Midlands would continue living there while 27% would also like to move to the South West. ‘This research shows that the British public largely agree about what they want in a dream home except for the location,’ said Helen Brooker, head of AA Home Membership. ‘It’s interesting that, if given the chance to live anywhere, many people would choose to live in the area where they’re from. But other than that, the South West is the most popular location in the UK. If everyone went there maybe it would become so crowded it would lose its appeal,’ she pointed out. The research shows that while younger people aspire to own substantial properties, older respondents have more modest ambitions. Home owners aged over 65 are the age group most likely to want a two or three bedroom home with 52% saying so. Those who live in the North West are most likely to say that their dream home would not be in the UK at 19% compared to 13% overall. Respondents also had strong feelings about the age of their dream property. Some 73% of respondents want a house that’s less than 100 years old and the likelihood of wanting a new property increases with age. Character properties that are more than 100 years old are not as popular as we might expect as only 18% would like to live in such a home. Adding to the appeal of a home in the South West is the hit BBC television series Poldark which had resulted in enquiries about homes in locations in Cornwall where it was filmed soaring. Estate agents report a rise in enquiries in villages, such as Charlestown, Gunwalloe and Porthgwara, according to property site Rightmove. Brian Deacon, sales and marketing director for Linden Homes, which have a development near Charlestown said reservations and visitor levels at the housing scheme have certainly increased… Continue reading
