TSI
New report reveals housing issues in parts of the UK
Parts of the UK are facing major housing challenges that include not enough smaller homes for young people or those wishing to downsize, according to a new national report. Among the other issues identified are mortgage debt, the cost of looking after a property, rising rents, being unable to sell in the current market and a higher cost of living in rural areas. The report from national charity Citizens Advice says there needs to be a wider debate about the housing challenges in England and Wales and it is calling for a debate beyond getting people onto the property ladder. Particular problems mentioned include the fact that 1950s and 1960s new town planning decisions in places like Crawley has resulted in not enough small homes for young people or those wanting to downsize and home owners in County Durham struggling to keep up mortgage payments and meet the costs of looking after their home. Young seasonal workers in Blackpool are trapped renting in crumbling bed and breakfasts, whilst owners are unable to sell and people in Conwy, Enfield and Dorchester face spiralling private rents, up-front costs of moving and sub-standard homes rented out by private landlords. Also the growing student population in Exeter has had a major impact on the local infrastructure and people are being driven out of towns in Pembrokeshire by poor housing standards and antisocial behaviour, but struggling with the higher costs of rural living. ‘People's housing challenges vary by where they live. Across the country too many people are living in homes that don't meet their needs from private renters in a damp property or home owners who can't afford to move. Housing is one of the top issues people turn to us for help with, but within this we see a huge range of different problems,’ said Gillian Guy, chief executive of Citizens Advice. ‘We need a broad-ranging debate about the different housing challenges facing the nation, one that moves beyond just trying to get people onto the property ladder. The new Government has the opportunity now to look at housing problems in the round and consider how best address the range of challenges faced by renters and home owners alike,’ she added. Continue reading
House prices drop in Scotland due to new property tax bands
House prices in Scotland fell 1.6% in April, the largest monthly fall since 2009, but sales were up 18% month on month and are 4% higher than a year ago. It means that prices fell £3,000 in April taking the average house price to £184,970 but prices are still 14.6% higher than in the same month in 2014, according to the latest Your Move/Acadata monthly index. The index report points out that much of the change could be due to the introduction of the new Land and Buildings Transaction Tax (LBTT) in April which saw a lot of sales in the higher price brackets pushed through to avoid paying a higher level of property tax. Indeed, buyers rushed through 83 sales in the £1 million plus sector in March, compared to an average of 12 in a typical month, to beat higher tax. Some 46 were sold in just three days, but no million pound homes were sold in April. The most significant monthly downturn was found in East Lothian, where values dropped 7.2%. The islands of Orkney, Eilean Siar and the Shetlands saw the highest price increases during the month, of 9.1%, 4.8% and 4.4% respectively. Property values also reached a new peak in the Scottish Borders, Highland, and West Dunbartonshire in April. While year on year the biggest increase in prices has been in Edinburgh with growth of 25.5%. ‘Reforming Scottish stamp duty was always going to ruffle a few feathers in the market. After a spectacular 9.4% leap during March ahead of the LBTT, average Scottish house prices subsequently fell by the sharpest fall we’ve seen since March 2009, when the housing market was at the lowest ebb of the housing crisis,’ said Christine Campbell, Your Move managing director in Scotland. ‘The Scottish housing market put on a high-octane performance in March, as high end buyers raced against the clock to snap up million-pound property before the higher rates of stamp duty came into play. This magnified the average price paid in March, but now the market is re-focusing,’ she explained. She pointed out that the drop in prices has cooled annual growth, which slipped from 16.3% in March to 14.6% in April. ‘However, with double digit growth still pervading, the housing recovery doesn’t appear too shaken, and this short-term hiccup has been concentrated in higher priced areas,’ added Campbell. The data shows that there were 8,203 home sales during April, and overall, Scottish sales in both March and April have grown on 2014 levels, bucking the trend across England and Wales, where sales have been consistently falling behind on a yearly basis over the past six months. The figures also show how the change in stamp duty in Scotland has clearly accelerated purchasing decisions to the beginning of the year. For instance, there were 237 more homes sold in Edinburgh during the first quarter of 2015 than the first quarter of last year, of which 130 were larger, detached properties…. Continue reading
UK home lending weaker than a year ago, latest data shows
Lending for homes in the UK in April was weaker compared to a year ago but remained steady month on month, according to the latest data from the Council of Mortgage Lenders. verall gross lending in April was £15.8 billion, down from £16.1 billion in March and £16.8 billion in April last year. First time buyers saw a decline in lending compared to March and April last year although loan sizes for this sector have increased since a year ago. The CML says that competitive mortgage rates mean first time buyers are paying less to service their mortgage than any time since it began tracking this in 2005. Home mover lending volumes went up slightly month on month but there was a decline compared to April last year. The average home mover loan size decreased in April compared to March, but increased compared to the same period last year. Home owner remortgage activity also declined compared to last year and on a month to month basis. It has remained relatively subdued since around 2009. Lending for buy to let in April saw a decline compared to March, but there was substantial growth compared to levels in April last year. The CML says this was largely due to the increased levels of remortgage activity in the buy to let sector seen since the beginning of the year. The composition of lending for buy to let is different compared to that of home owner lending. While over the past year about 30% of lending to home owners was for remortgage, in the buy to let market 52% of lending was for remortgage. ‘House purchase lending in April was relatively subdued compared to last year, but similar to activity in March,’ said Paul Smee, director general of the CML, ‘The economy is recovering, with employment up, earnings growing, and competitive mortgage rates, so we expect activity to continue building as the year progresses. Buy to let is showing stronger growth than home-owner lending, buoyed significantly by remortgaging, which continues to remain more subdued in the home owner market,’ he added. Continue reading
