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Research shows average fixed rate mortgage deals in the UK are at lowest since 2012
Average fixed rates for two, three and five year mortgages in the UK are at their lowest level since 2012, new research shows, and the number of 10 year fixed deals is beginning to grow. Home owners looking to get the best possible deal should consider fixing their mortgage now whilst providers are cutting rates, says the research report from comparison website MoneySuperMarket. The research looked at average fixed term mortgage rates and found they have crept down to some of their lowest ever levels again, despite speculation of a base rate rise next year. The average rate for a five year fixed deal currently stands at 3.45% while last year it was 4.06% and in 2012 it was 4.67%. Shorter term mortgage deals also follow the same pattern, with the average three year fixed rate coming in at 3.21% today, compared to a rate of 4.8% in 2012. Similarly, the average two year fixed mortgage rate is now 2.9% whereas it was 4.48% in 2012. The research also shows that those looking to secure their mortgage rate for a more substantial amount of time will find that there are now more deals to choose from. There are currently 41 10 year fixed rate products on the market while just last month the total number stood at 35. ‘Mortgage lenders are doing a U-turn, decreasing their rates again after hiking them over the last couple of months. Even though the Bank of England base rate hasn’t risen yet, it’s still a case of when rather than if, so any homeowners looking for a cheaper deal should take advantage of the current low rates,’ said Dan Plant, consumer expert at MoneySuperMarket. ‘Many lenders allow mortgage holders to reserve rates available now for up to six months for a small fee, so even those who still have some time left on their current deal can benefit. However, you should never rush into decisions to do with mortgages,’ he pointed out. ‘Before taking out a mortgage, it’s vital to work out the total cost over the term of the deal, taking both rates and fees into account. Expensive fees can wipe out the potential benefit of a lower rate so do the sums first to ensure you really are getting a great deal. The good news is that we’ve seen fees decrease over the last four years, especially for five year fixed deals, meaning it’s a cheap time overall to be looking around,’ he added. Continue reading
Residential property market in China picked up in third quarter of 2015
The residential property market in mainland China picked up gradually in the third quarter of 2015 amid a series of favourable policies such as cuts in interest rates, relaxed restrictions on foreign purchase and an easing of housing provident fund loans. Luxury home prices rose further in first tier cities including Beijing, Shanghai and Guangzhou, where the markets continued to clear inventories, according to the latest Greater China property market report from international real estate firm Knight Frank. It says that the favourable policies will continue to benefit first tier cites, but are less effective in lower tier cities with high inventory levels and weak demand. ‘With Chinese and Hong Kong’s stock market volatility and concerns over an interest-rate hike in the US, Hong Kong’s luxury home buyers tended to wait and see, while secondary landlords were also firm on asking prices, resulting in declines in home sales, rents and prices in the luxury market,’ it explains. It points out that more residential properties are scheduled to complete next year, which will impose further pressure on luxury home rents and prices. In Taipei, amid the government’s regulatory measures, luxury home transactions declined. Landlords became more inclined to hold and rent out their residential assets, leading to increased leasing supply. Nevertheless, luxury residential rents and prices remained stable during the third quarter and the outlook is one of polarisation. The report says the market will be affected by cooling measures, the launch of a combined property and land tax and market expectations. ‘Premium residences in the downtown area will have prices remaining firm, while non-prime luxury homes will experience downward pressure on prices,’ it adds. For the commercial market, the report says that Chinese stock market volatility coupled with growing fears of a slowdown in domestic economic growth, led to a slower pace of corporate expansion, hence weighting on Grade-A office rents in major mainland cities. On the other hand, the People's Bank of China has actively cut interest rates and the reserve requirement ratio since the beginning of this year, aiming to release liquidity in the financial system and ultimately to boost the economy. Grade-A offices prices in Beijing, Shanghai and Guangzhou rose as investing in such properties became increasingly attractive in such a low interest rate environment. With the completion of more Grade-A office buildings in the cities, rents are expected to face further downward pressure in the future. Hong Kong's Grade-A office market recorded strong performance. With sustained office demand from mainland financial institutions but a lack of supply in core business areas, the vacancy rate fell sharply and companies had to rent at higher rental costs. Due to extremely low availability and high rents in core areas, some firms shifted to more cost effective offices in non-core areas where supply was abundant. This trend is likely to continue next year, the report says, with further growth in office rents in core areas. In Taipei, over 80,000 square meters of Grade-A… Continue reading
International tenants dominate top end of central London prime rental market
International tenants and low stock levels are key features of the current prime central London lettings market, especially at its uppermost levels, according to the latest analysis report. Domestic tenants, including students and middle ranking pied-a-terre seeking business commuters, tend to dominate the rental market price band of £300 to £1,000 per week, according to the review from prime lettings specialist E J Harris. But the £1,000 to £4,000 per week price band is characterised by bankers and corporate tenants and above £4,000 per week the market is dominated by ultra-wealthy visitors from Russia, Africa, the Middle East and Asia. Using research from their own client database, local market intelligence and drawing on wider industry figures, the firm has produced a guide to top addresses, tenant profiles, typical apartment/house sizes for different rental price brands across the prime sector. It found that rental values have increased by 1% in prime central London over the past three months, achieving an average gross yield of 2.92% and the average rent per square foot in is currently £54. Tenants seeking rental properties on the market for £300 to £500 per week in prime central London can expect to find one bedroom apartments, providing 300 square feet of accommodation, typically located in Shepherd’s Bush, Holland Park and Bayswater. Tenants in this price brand are normally individuals or young couples aged 25 to 35 who looking for a pied-a-terre in the capital or young graduates who have landed their first job. Stock in this price brand is currently down 10%. Those searching for homes available to rent for £500 to £1,000 per week can find one or two bedroom apartments, providing 700 to 900 square feet of accommodation. Tenants will typically find a wider choice of properties available at that price range in Notting Hill, Marylebone and East Mayfair where the district borders Oxford Street. Tenants with this price brand are often students from wealthy families, whose parents are willing to pay their entire rent and deposit up front in order to secure the property they want. This price bracket also includes European and American corporate tenants who are relocating to London, and are typically couples with children or young single professionals. Stock within this price band is also currently down 10%. Tenants looking to spend £1,000 to £2,000 per week can expect to find two bedroom apartments offering 1,000 to 1,500 square feet of living space and situated in Mayfair, Belgravia or Marylebone. Typically, tenants searching for properties at this level are socialites seeking luxury pads or corporate tenants relocating to London, usually for a three-year stay. Stock in this price band is currently up 5%. E J Harris reveal that tenants able to spend £2,000 to £4,000 per week will find two and three bedroom luxury apartments situated in Belgravia, Mayfair or Knightsbridge. The typical profile of tenants seeking homes at this price range are CEO’s and… Continue reading
