Taylor Scott International
Thousands sign up for new property alert service in England and Wales
In its first year, over 19,000 people have signed up to the UK Land Registry’s free Property Alert service which provides an early warning of possible suspicious activity on someone’s property. The aim of Property Alert is to help people protect their home from fraudsters. ‘There are many people who have no idea that someone could steal their home from under them, but unfortunately it can and does happen,’ said Tracey Salvin, Property Alert service manager. ‘For example, someone may pretend to be you using forged documents and sell or mortgage your home. While this is not common, when it does happen it can have devastating consequences for the victim. Imagine finding out that someone else has sold or mortgaged your property without your knowledge and disappeared with the money, leaving you to pick up the pieces,’ she explained. A case study involved a Ms Anderson (names have been changed) who signed up for the Property Alert service and placed an alert on her property. She received an email alert the very next day saying that an application to transfer her property had been made. Ms Anderson knew nothing about this and contacted Land Registry’s property fraud reporting line. On investigation, they found that the application had been made by Ms Anderson’s father and contained evidence claiming to show that Ms Anderson’s identity had been checked by a solicitor. Ms Anderson claimed she had never been to see this solicitor and denied signing any transfer of her property. She also alleged that her father was intercepting her mail and at one time had taken her passport. When the Land Registry contacted the solicitor concerned, he confirmed he had met someone claiming to be Ms Anderson but who, it turned out, must have been an imposter. ‘As a result of Ms Anderson contacting Land Registry, we formally notified Ms Anderson’s father of her objection to his application. As we didn’t receive any response from him, we cancelled his application. This allowed Ms Anderson to proceed with selling her property as she had planned to do,’ said Salvin. Property fraud can happen in many ways. For example, fraudsters may steal someone’s identity and attempt to gain ownership of a property by using forged documents. The fraudsters may then raise money by mortgaging the property without the owner’s knowledge before disappearing with the money, leaving the owner to deal with the consequences. Land Registry has stopped fraud on properties worth more than £70 million since 2009. Those wishing to join will need to set up an online account with Land Registry which is free They will then be able to monitor up to 10 registered properties in England and Wales. Email alerts will be sent when there is certain activity on the property and people can then judge whether or not the activity is suspicious and if they should seek further advice. People who are not online can also sign up for Property Alert by calling… Continue reading
First time buyers lending in Scotland up 23% last year
Lending for homes in Scotland fell in the final quarter of 2014 but there were more mortgages going to first time buyers compared to the same period the year before. The latest data from the Council of Mortgage Lenders shows that overall lending was up 23% last year but mortgages fell at the end of the year. Scotland accounted for 6.6% of UK wide annual house purchase activity, down from 6.9% in 2013. Lenders advanced 27,700 loans to first time buyers in Scotland totaling £2.9 billion, 16% up in volume compared to 2013, and 23% up in value. A breakdown of the figures show that there were 7,000 first time buyer loans in Scotland, worth £750m. This was down compared to the third quarter 5% by value and 4% by volume. Compared to the fourth quarter of 2013, the number of loans increased by 3% and the amount borrowed by 9%. There were 8,000 loans to home movers, valued at, £1.2 billion, down 8% in volume and down 9% in value compared to the third quarter. Compared to the fourth quarter of 2013, there was a decrease of 8% in volume and a decrease of 5% in value. The total number of remortgage loans declined in the fourth quarter to 5,700 loans at £650 million, which was down 3% in volume but unchanged in value on the third quarter. Compared to the fourth quarter of 2013, activity was down 17% in volume and 13% in value. First time buyer affordability changed slightly in Scotland quarter on quarter with first time buyers typically borrowing 2.90 times their gross income, less than the 2.94 income multiple in the third quarter and less than the UK average of 3.38. The typical loan size for first time buyers was £97,200 in the fourth quarter, down from £98,600 in the previous quarter. The typical gross income of a first time buyer household was £33,965 compared to £33,520 in the third quarter. The relatively low level of interest rates saw first time buyers' payment burden remaining relatively low in the third quarter at 16.8% of gross income being spent to cover capital and interest payments, higher than the third quarter's 17.3%. Home mover affordability changed fractionally, with home movers typically borrowing 2.64 times their gross income compared 2.62 in the third quarter and to 3.03 for the UK overall. The typical loan size for home movers was £128,244 in fourth quarter, down from £130,000 in the previous quarter. The typical gross household income of a home mover was £50,773 in fourth quarter compared to £50,971 in the third quarter. Home movers' payment burden remained relatively low in Scotland at 16.5% of gross income being spent to cover monthly capital and interest payments, less than the 16.9% in the third quarter and considerably less than the 18.4% UK average. Overall for 2014, remortgage lending in Scotland was 23,400 loans reflecting a value of £2.6 billion. This was 14% down in volume compared to 2013,… Continue reading
Property prices in Australia up 0.3% in February
Property prices in Australian capital cities increased by 0.3% in February, taking the annual rise in values to 8.3%, the latest index data shows. Sydney again recorded the largest increase at 13.7% year on year followed by Melbourne at 7.4% and Brisbane at 5.9%, according to the CoreLogic RP Index. In contrast, dwelling values have increased by less than 4% in every other capital city over the year. The data also shows that since the beginning of the growth cycle in June 2012, dwelling values have moved 22.6% higher across the combined capital cities. According to Tim Lawless, head of research, this demonstrates the heat emanating from the Sydney market with values up 34.8% cumulatively over the cycle to date across Australia’s largest capital city. Lawless pointed out the latest month on month results show a moderation in the rate of dwelling value growth compared with the December and January figures. The monthly rate of growth slowed from 1.3% in January and 0.9% in December, however the growth trend remains strong, particularly in Sydney and Melbourne. ‘The slower rate of capital gain in February may come as a surprise to some who were expecting lower mortgage rates to instantly propel the pace of home value growth higher. We are already seeing the effect of lower mortgage rates, with auction clearance rates surging to the highest levels we have seen since 2009 and valuation activity reaching new record highs based on daily averages over the second half of February,’ said Lawless. ‘Despite the flurry of activity, it will likely take some time to see this flow through to a higher rate of capital gain. We might not see the lower interest rate environment stimulate the housing market as much as it has in the past,’ he explained. ‘Weaker jobs growth, higher unemployment, declining affordability, low rental yields and political uncertainty are all factors that could dent consumer confidence and provide some counter balance to the rate cuts and quell any additional market exuberance,’ he added. The report also says that there is evidence of compressed rental yields continuing across each of the capital city markets. A year ago the gross rental yield for a capital city dwelling was averaging 4.3% but by the end of February the typical gross yield has been eroded down to just 3.7%, due largely to the consistent high rate of dwelling value growth relative to rental growth. According to Lawless, over the current growth cycle to date, capital city dwelling values have risen at more than three times the pace of weekly rents. ‘The bi-product of such strong capital gains and relatively weak rental growth is that rental yields are being forced lower and lower,’ he said. In Melbourne, the yield profile is the lowest of any capital city with the typical Melbourne dwelling showing a gross yield of just 3.3%. Sydney isn’t far behind with a gross dwelling yield of 3.6%. However, Lawless noted that if Sydney dwelling values… Continue reading
