TSI
UK govt flagship Help to Buy scheme helps over 70,000 home owners
Help to Buy, the UK government’s flagship scheme, has helped more than 71,000 people across the country buy a new home, the latest official figures show. In total over 66,000 households have been helped by the Help to Buy mortgage guarantee and Equity Loan which was introduced to help those who cannot afford a mortgage to buy a home. Some critics claimed it would not actually help those who needed it and be used by buyers in London to the detriment of others but the figures show this has not happened. The figures reveal that 81% of Help to Buy sales are to first time buyers, helping 54,000 into their first home and the vast majority of sales have been outside of London and at prices well below the national average. Together with the government’s NewBuy scheme which offers 95% mortgages for those buying new build properties, the number of new home owners has reached more than 71,000. The figures also show how Help to Buy is benefiting every region of the country. The North West is the highest region for the mortgage guarantee, while the Equity Loan scheme for new build properties is particularly successful in the East and South East and overall 94% of completions under the scheme remain outside London. Leeds council is the highest performing local authority across the country for the two parts of Help to Buy with almost 1,000 new homes secured by its residents. While Birmingham council has seen a significant increase of over 300 new completions. Help to Buy is also helping to increase housing supply and get Britain building by driving demand for new build homes. Over half of the homes bought through the scheme are new build properties, and private house building is up 20% since the launch of the Equity Loan scheme. The government also says that Help to Buy is supporting responsible lending, with the average house price for the combined schemes at £186,000, or £156,000 for mortgage guarantee and £211,000 under the equity loan scheme, all of which are well below the UK average house price of £273,000. The average house price to income multiple under the mortgage guarantee scheme is just over 3.5 times salary, and capped at a 4.5 times ratio to ensure responsible lending. Figures for the mortgage guarantee scheme also show completions have been least concentrated in regions where house price growth is highest, for instance in London the scheme makes up just 1% of all mortgage lending compared to an average of 3% across the country. ‘Getting the keys to your first home is a moment that no one forgets. It’s about being able to start planning for the future and enjoying the security that you’ve worked hard for,’ said Prime Minister David Cameron. ‘But in the aftermath of the great recession the prospect of buying a first home was nothing more than a pipe dream for many thousands of hardworking people in Britain. Even those with a decent salary who could… Continue reading
Property prices in England and Wales up 0.1% in Oct, says Land Reg index
Property prices in England and Wales increased by 0.1% in October, taking the average price to £177,377, according to the latest index from the Land Registry. The data for October also shows an overall annual price increase of 7.7% but there are considerable regional variations. London has seen the biggest annual price rise at 18.6% and a 0.7% month on month rise, taking the average price to £460,060. The East experienced the greatest monthly rise with a movement of 1.6% and has seen prices rise by 11% year on year to an average of £198,338, while the South East had an 11.4% year on year rise and monthly growth of 1.2% to an average of £240,070 The average price in Yorkshire and Humber is now £120,807 after a 0.6% month on month rise and annual growth of 4.3%, the South West has seen prices rise by 0.2% month and month and 6.4% year on year to £185,615 and the West Midlands also saw prices rise 0.2% month and month and an annual rise of 4.4% to £135,378. Elsewhere prices have fallen month on month but are still some way ahead of a year ago. The North East saw the steepest monthly fall with prices down 2.7% but they are up 2.7% year on year to an average of £97,356. In the North West prices fell 0.3% month on month but are up 4.5% year on year to £112,642. The East Midlands saw a month on month fall of 0.4% but price are up 5.7% compared to a year ago with an average price of £131,274. Wales also saw prices fall month on month, down 0.9% but up 2% year on year to an average of £118,437. The most up to date figures available show that during August 2014 the number of completed house sales in England and Wales increased by 4% to 82,415 compared with 79,587 in August 2013. The number of properties sold in England and Wales for over £1 million in August 2014 increased by 15% to 1,363 from 1,185 in August 2013. Peter Rollings, chief executive officer of Marsh & Parsons, pointed out that while UK house prices are still edging forward, growth is slowing compared to the first half of the year and although London has considerably outperformed all other regions during the last 12 months, growth has slowed considerably and on a monthly basis only edged up slightly. In addition, prices are slipping in some of the most expensive areas of the capital, with values in Kensington and Chelsea falling 2.5% over the month to October, as growth tails off more sharply at the top end of the market. ‘Activity levels at the top tiers of the UK housing market have shown healthy growth, with sales of properties worth over £1 million rising 15% in the year to August 2014. But fears of a potential mansion tax could contaminate demand for prime property in the run up to the general election,’… Continue reading
UK estate agents report a better balance between buyers and homes for sale
A better balance between the number of homes for sale and the number of registered home buyers in the UK is emerging, according to the latest report from the National Association of Estate Agents. The October Housing Market survey found that member agents reported an average of 53 properties for sale per branch, some 15% higher than the monthly average for the rest of 2014. It is the highest number recorded on books since October 2013 and compares with an average of 51 properties was recorded per branch in September. While supply showed signs of an increase, the number of house hunters registered per NAEA member branch fell, from 406 in September to 380 in October, easing the balance between the number of available homes and demand. The survey data also shows that the average number of homes sold during the month remained static on September figures, at average of nine sales per NAEA member branch. The number of first time buyers recorded fell, down 6% in October compared to the previous month’s figures, to 24% of total sales from 30% of total sales in September. ‘There is a better balance emerging between the level of demand and supply, as the number of registered house hunters falls for October, while the average number of available properties registered per branch rises to accommodate those looking to buy,’ said NAEA managing director Mark Hayward. ‘However, both supply and demand is still seasonably low for October. The decrease in buyer demand and in particular the decline in first time buyers, along with a relatively static sales market, could be a direct result of the stricter lending criteria which came into play six months ago at the end of April this year, making it harder for house hunters to access mortgage finance. This has certainly been reported as one possibility by our NAEA member branches,’ he added. When asked if the new MMR rules had led to a direct decrease in the overall number of home buyers since it was introduced six months ago, some 79% of NAEA member branches agreed it had affected the current number of buyers. With the exception of September 2014, in which 406 home buyers were recorded on average per branch, the number of house hunters registered per member branch had shown a decrease on figures recorded in April 2014 when it was 392 home buyers in the month MMR was introduced. NAEA member branches also said they believed the MMR had particularly affected demand among first time buyers with 70% of member branches reporting the implementation of MMR had led to a decrease in the number of first time buyers since it came into force. ‘First time buyers will be especially more cautious about making a purchase due to the stricter lending criteria now in place, which makes it harder to secure finance,’ explained Hayward. ‘In addition, prospective… Continue reading
