TSI
Some 20% of house seekers in UK would consider moving abroad to find affordable home
A fifth of disillusioned house hunters in the UK would consider leaving the country due to the cost involved in getting on the housing ladder. The United States is the most popular location with 31% saying they would consider moving there, according to research from comparison website Gocompare. Some 29% would consider moving to Australia and 20% to New Zealand with men more likely than women to consider a move overseas while those aged between 18 and 24 years old were most keen to leave the UK. Overall the most popular step to get on the property ladder is the government’s flagship Help to Buy scheme with 30% saying that is their preferred option but 20% willing to move abroad. The poll also shows that 15% would consider buying with friends, 14% would look at buying a micro home, 13.5% a static caravan or park home, 12% with their parents and 12% with other family members such as siblings. ‘A lack of affordable housing has resulted in a property market that is closed off to an increasing number of would-be homeowners. As such, it’s hardly surprising that many people feel like they may have to take some rather drastic steps to own a home,’ said Matt Sanders, spokesperson for Gocompare.com Mortgages. ‘While shared ownership, settling for small or alternative forms of accommodation, and even getting on a plane to another country are being mulled over as options for many, it’s also encouraging to see from our research that people are actively considering making use of the Help to Buy scheme. The majority of people who have applied to the scheme so far are first time buyers, but it’s open to all borrowers,’ he pointed out. ‘If you’re actively looking to buy a home, it’s well worth seeking advice from a qualified, impartial mortgage broker, who can give you an idea of what you can afford and the options available to you,’ he added. Continue reading
UK govt launches consultation on Bank of England powers in the housing market
The UK government is inviting responses to a consultation on which powers the independent Bank of England should have over the country’s housing market. The Chancellor George Osborne has already announced that he was determined to work with the Bank to ensure that they had appropriate powers over the UK housing market to maintain its stability. Earlier this month, the Bank requested a range of powers including the ability to set a debt to income ratio for mortgages and control loan to value ratios. Currently, the Bank can only recommend that such a limit is put in place. The power to put in place these limits lies with the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA). So the government is launching a consultation today on whether the Financial Policy Committee (FPC) should have the power to directly control these limits for macro-prudential purposes. The consultation will run from 30 October to 28 November 2014 and the powers that the Bank is requesting are commonly held by its counterparts in other countries. For example, loan to value controls are used extensively in countries including Canada, New Zealand and Norway, while both the Hong Kong and South Korea have used debt to income ratios too, which has proved particularly successful. The consultation document states that the government is proposing that the Bank is granted powers of direction for loan to value limits and debt to income limits for owner-occupied mortgages. The government is particularly interested to hear what consumers and the industry feels is an appropriate definition of debt for these purposes. The government intends to consult separately in 2015 on the Bank’s recommendations for it to have new powers over the buy to let market, with a view to building an in-depth evidence base on how the operation of the UK buy to let housing market may carry risks to financial stability. ‘Ensuring the stability of the UK housing market is a crucial part of this government’s long term economic plan, and I have been clear that the independent Bank of England should have the tools it needs to do this,’ said Osborne. ‘That’s why the government is consulting on this issue, to ensure that we can bring forward appropriate legislation to give the Bank the powers it needs. The government already works closely with the Bank to ensure the ongoing stability of the UK housing market,’ he pointed out. He added that in June, the Bank issued a recommendation over mortgage lending limits, with new regulations introduced earlier this month capping the number of loans above 4.5 times income which banks can offer. Continue reading
Average asking prices in UK stabilise in third quarter of 2014
Average asking prices in the UK residential market stabilised in the third quarter of 2014 after nine months of consistent growth, according to the latest figures. The average asking price rose by just 0.85% in the quarter but despite this small increase, the average asking price was the highest on record at £265,545. Unusually, the Greater London market was subdued in the third quarter of the year as it tempered following the huge growth recorded in the first half of 2014, according to the data from Move with Us. The region, surprisingly, wasn’t the strongest performing in the third quarter, seeing the fourth largest percentage growth in Britain at just 1.03%. A moderate rise in the average asking price combined with lengthening selling times indicated average asking prices in the Capital may have settled at £466,147 for the time being. The East Midlands saw the highest percentage growth in the average asking price, which reached £192,787 in the third quarter. This rise is, however, still relatively small at 1.36%. The average asking price dipped in just two regions in a quarterly comparison, in the North East by 0.10% to £154,073 and in Scotland by 0.22% to £161,937. Despite this quarterly drop, the average asking price in both regions grew marginally in a yearly comparison demonstrating stability. ‘The last three months have signalled a shift from the first half of the year, with average asking prices stabilising in most British regions after months of consecutive growth.’ said Robin King, director, Move with Us. ‘However, this didn’t stop prices hitting the highest figure on record with an average asking price £265,545 for Great Britain. In the Capital the market experienced an uncharacteristic slowdown in the third quarter of 2014 and for the first time in years didn’t have the highest percentage increase in the average asking price,’ he added. A breakdown of the figures show that despite expectation of strong price increases expected for the Greater London market, the average asking price levelled in the third quarter for the first time since November 2012, finishing the quarter at £466,147. Year on year, however, the average asking price in the region has increased £87,636 or 18.8%. The average asking price in the South West peaked at a record high of £282,093 in July. It then adjusted downwards slightly and stabilised in August and September, sustaining the increases seen in the second quarter of 2014. By the end of the third quarter the average asking price in the region was £281,985, just £1,043 or 0.37% higher than the second quarter of 2014. In the South East, the market experienced a slight downward adjustment in August, despite a growth of £11,144 between April and July. This is not unexpected on the back of such strong price increases. By September, prices were rising once more albeit at a slower pace in the region and at the end of the third quarter the average asking price in the area was £344,414, the highest on record. This… Continue reading
