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UK govt Help to Buy schemes continue to be a success, latest data shows
The number of people joining the housing ladder in the UK using government support schemes continues to grow as new figures show more than 77,000 homes have been bought under the flagship Help to Buy schemes. Overall the figures show more people are getting a home of their own through the scheme and as a result house building levels continue to climb. Some 41,533 households were helped into new build homes under the Help to Buy equity loan scheme up to December 2014 and of these 83% are first time buyers. Also, 94% of total sales were outside London. The figures also show that 30,269 households were buying new and existing homes through the Help to Buy mortgage guarantee scheme and 5,588 households were supported into a new build home through the Help to Buy: NewBuy scheme. It means that in total more than 77,000 households have been supported under Help to Buy up to December 2014. Sales through the Help to Buy have been strong across the country, with Wiltshire at 748 seeing the highest number. The top five other areas that have a strong number of Help to Buy sales include Leeds at 669, Central Bedfordshire at 650, Milton Keynes at 567, Peterborough at 564 and Birmingham at 527. ‘The figures show clearly that Help to Buy supports aspiring homeowners and is a key part of our drive to help hardworking people who want a home of their own. To date, Help to Buy has helped over 77,000 households to purchase a home with just a fraction of the deposit they would normally require,’ said Housing Minister Brandon Lewis. ‘The scheme has also helped get the country building again, with private house building up 20% over the last year, and it’s highest since 2007. Industry figures showing 100,000 new house building jobs have been created in just the last 18 months, show clearly that Help to Buy is a success,’ he explained. The recent steep increase in house building activity has seen builders across the country recruiting heavily, according to Home Builders Federation executive chairman Stewart Baseley. ‘The industry needs skilled and ambitious people in a range of areas including bricklayers, site managers, engineers and finance professionals and offers an exciting and rewarding career for anyone who wants to help build the communities of the future,’ he said. Continue reading
Recovering European real estate markets set to be magnet for investors in 2015
Berlin is expected to be the top European real estate investment market in 2015, followed by Dublin, Madrid, Hamburg and Athens. Recovering markets like Dublin, Madrid and Athens which were hit by the economic downturn are regarded as being fertile grounds for property investors, according to the latest annual emerging trends report from the Urban Land Institute and PwC. The report points out that competition for prime assets in Europe’s major real estate markets is leading property investors to continue their move into secondary assets and recovering markets. It highlights a surge in popularity for real estate investment opportunities in a number of cities that were hit particularly hard during the last market downturn, with dramatic rises in this year’s city rankings for Madrid, up 16 position, Athens up 23 positions, Birmingham up 14 positions, Amsterdam up 17 positions and Lisbon up 17 positions. Berlin has moved up the rankings from last year, knocking Munich off the top spot for investment prospects in 2015. Historically dominated by domestic buyers, Berlin’s investment climate has now changed as international investors pour capital into the city, the report says. The city is described as a hotspot for media and technology and its young population has helped boost the investment appeal of its residential sector. Ranked again in second place, Dublin has had another strong year in which investors have jostled for opportunities. There was strong rental growth based on low supply, employment growth and an improving economy. Office rents and values are recovering strongly but still have some way to go before they reach their pre-crisis peak. Madrid has shot up the rankings for investment prospects and many overseas investors are targeting the city. But whether Spain offers solid, long term business prospects is hotly debated among opportunistic investors, the report points out. Hamburg has slipped by one place this year, but this is mainly due to investors looking to smaller, less established markets rather than any real decline in the city’s fundamentals, the report explains. International investors are flooding into Hamburg, accounting for half of the €2.4 billion of deals in the first three quarters of 2014. Its growing population means the residential sector is thriving. Athens is the biggest mover on the list this year, up 23 places to number five. In recent Emerging Trends surveys, investors have indicated a willingness to enter other distressed markets such as Spain, Ireland and Italy, but Greece is starting to gain attention, the report says. Although Europe’s hardest hit economy remains fragile, a few trail blazing investors are moving in to take advantage of pre-rebound opportunities. The report finds that in spite of economic uncertainties in Europe, property remains fertile ground for investors. Some 70% of investors expect more equity and debt will flow into their markets this year in a quest for the best real estate. The biggest problem investors are anticipating is a shortage of assets, ahead… Continue reading
Mortgage approvals in UK rise for first time in six months
Residential mortgage approvals in the UK rose in December for the first time since June, suggesting that a steady slowdown in the number of loans for home purchases could be bottoming out. Data from the Bank of England shows mortgage approvals for house purchases numbered 60,275 in the final month of 2014, up from 58,956 in November, but overall the number of approvals fell in most months of the year. Experts point to tighter rules on mortgage lending requiring banks and building societies to make more rigorous checks on whether borrowers can afford their loans as being behind the change. Before the 2008 financial crisis, monthly mortgage approvals in the UK ran at around 90,000 and the data also shows, and net mortgage lending, which lags approvals, rose by £1.612 billion, slowing from November and below expectations. ‘The introduction of more restrictive mortgage regulation in the autumn took the breath out of lending for a while,’ said Adrian Gill, director of Your Move and Reeds Rains estate agents, adding that lending is climbing again. ‘As the market adjusts to these new measures this stranglehold has been loosened. There was an encouraging December uptick in mortgage approvals, as borrowing is once more starting to build up speed,’ he explained. He pointed out that the government’s flagship Help to Buy is a vital foothold for first time buyers looking for a leg-up onto the housing ladder and is also crucially going some way to iron out significant regional discrepancies in the housing recovery. ‘The scheme is leaving the biggest imprint on places outside of London and the South East, where property prices are still lower and growth is yet to seriously hit the ground running,’ he added. ‘With the combined support of Help to Buy, higher LTV lending, low mortgage rates and reduced stamp duty costs, the path was clear for many smart first time buyers to make tracks and find fantastic deals on homes,’ he concluded. Meanwhile, new research suggests that some 5.2 million UK mortgage holders are ill prepared for unexpected illness in terms of making mortgage payments. According to the survey from mutual life insurance company Royal London some 52% of UK mortgage holders who earn an income don’t have a plan in place to cover repayments if they fall too ill to earn for three months or more. The research also found that although 34% of those without a plan in place to cover repayments have thought about it, some 18%, or 1.8 million people, admitted they have not given it any thought. Royal London also found evidence that many mortgage-holders who earn an income, haven’t considered how long they could cope financially if they became too ill to earn with 50% estimating it would be six months or less, and 26% not knowing how long they could cope. ‘Our research highlights how many UK mortgage holders are in a vulnerable position unsure how they’d cope financially and who they… Continue reading
