Healthy Mortgage Lending for June

Having done the sums for the month of June, the Council of Mortgage Lenders (CML) was able to release their healthiest figures of the year.  Gross lending, which includes remortgaging, rose to £15.1bn.  That was 15% more than the previous month and 7% more than 12 months ago.  But the rise was put down to merely a seasonal trend, rather than a general improvement in the market.
Commenting on the latest data, CML economist, Paul Samter, said: “There are signs of house prices stabilising and more properties coming onto the market following the abolition of home information packs.  This may improve liquidity but transaction levels are subdued and likely to remain so while access to credit remains constrained.” read more ...

Houseboat Living

With the average house price standing at anywhere between £167,000 and £207,000 depending on whether you listen to the major mortgage lenders or the Department for Communities and Local Government, it’s no wonder that many of us can’t, or simply don’t want to get on the housing market.  But is living on a residential boat in preference to conventional home ownership, a real option? read more ...

 

House Prices continue to fall

According to Halifax data, house prices have fallen for three consecutive months.  The 0.6% fall in June comes after 0.5% and 0.1% declines in May and April respectively.  House prices are up 7.5% since the market’s recent low of spring 2009, but the average house is worth £3,200 less than in January of this year, according to the building society’s figures.  The general consensus among estate agents indicates that the reason for the recent drops in the market, are down to more houses coming onto the market, tipping the balance between supply and demand. read more ...

 

House Prices Rise 10% in a Year

According to the Department for Communities and Local Government (DCLG), house price inflation is back into double digits.  It recorded a rise in prices of 10.1% between April 2009 and April 2010.  This is the highest rate of inflation since October 2007, when house prices had already hit their peak and were on a downward trend.  Although its statistics are well behind those of other agencies such as building societies like Nationwide and Halifax, the department reported that UK property value rose by 0.4% in April, to make the average house worth £207,516. read more ...

 

‘Garden-Grabbing’ to be Curbed by New Government

 

The new coalition Government has made a pledge to change the rules on the classification of suburban gardens, giving councils greater power to turn down developers who want to build on them.  Communities minister Greg Clark said that it was “ridiculous” that vital green space was being lost to the practice known as ‘garden-grabbing’. read more ...

 

Japanese Knotweed: A Menace to Homeowners

Japanese knotweed is a highly invasive, bamboo-like plant that currently occupies most regions of the British Isles except Orkney.  It is an extremely hardy plant that can cause damage to walls, foundations, gardens, paths and driveways.  It often prevents homeowners from remortgaging or selling their property and it is extremely difficult to eradicate as the roots go extremely deep and discarded cuttings will re-root themselves. read more ...

 

Home Information Packs (HIPs) Suspended by New Government

Once a flagship of New Labour housing policy; the much maligned Home Information Pack (HIP) has been scrapped by the new Conservative-Liberal Democrat coalition Government.  First introduced in 2007 for properties with four or more bedrooms in England and Wales, and then rolled out to all properties, the HIP was compulsory for all home owners who wished to market their home.  As of 21st May 2010 the HIP is no more, as the coalition Government have taken advantage of a clause in the 2004 Housing Act to suspend the scheme, although the Energy Performance Certificate (EPC) will be retained. read more ...

House Prices Set for Post-Election Boost?

With the new Government finally settled the estate agent members of the Royal Institute of Chartered Surveyors (RICS) believe that house prices are set for a post-election bounce.  The closely-watched RICS report for April showed a general consensus that house prices would continue to rise over the next few months, despite the general belief that more houses seem to be coming up for sale. read more ...

 

Tesco Set to Start Building Homes

As Britain’s biggest supermarket, Tesco already has its tentacles into most of us.  The latest news from the retail giant, which already runs an estate agent service, is that it will strengthen its grip on the property market by building homes.  Four ‘mini-villages’ are planned in the South East and a series of smaller mixed homes, shops and leisure developments in Ipswich and the North East. read more ...

 

Which Party is best for the Housing Market?

The race is on for your vote and all parties will tell you what you want to hear if they think that it will persuade you to put an ‘X’ next to them on the ballot sheet.  Recent polls, if they can be believed, suggest that this is going to be a close one, but how do their manifestos match up to the needs of the various factions in the property market? read more ...

 

Big Deposits Stump First-Time Buyers

 

Despite the recent falls in property prices and the stamp-duty holidays, first-time buyers are finding it increasingly difficult to get onto the property market.  This is because lenders have been demanding hefty deposits to secure the best deals – often in the region of 30-40%.  Statistics say that property is affordable for first-timers in 40% of the UK, but the average deposit paid by them in 2009 was a massive £29,439.  Just imagine how long it would take someone on the country’s average wage (around £25,000) to save that amount of money, whilst simultaneously paying rent, without the help of a relative. read more ...

 

A Short History of Stamp Duty

 

When New Labour swept to a landslide victory in the General Election of 1997, stamp duty was payable at 1% on properties over £60,000.  Immediately, the new Chancellor, Gordon Brown, sensed an opportunity and introduced two new stamp duty bands; 1.5% on properties worth over £250,000 and 2% on those worth over £500,000.  Amid the new Labour media honeymoon and the average home worth just £60,000, the proposals sailed through.  Three years later, Gordon Brown repeated the trick, tweaking the top two bands to 3% and 4% respectively.  It was certainly a smart move as far as the Chancellery was concerned; annual tax take soared from £830m to £6.5bn in the first 10 years of Labour Government. read more ...

 

Stamp Duty News Greeted with Caution

 

The news from the 2010 budget that first-time buyers would not be charged stamp duty on homes up to the value of £250,000 for the next two years was greeted somewhat lukewarmly by industry bodies.  They argue that the exemption should have applied to all homebuyers as it will be difficult to police.  It is planned to fund this move by increasing stamp duty to 5% for those buying homes costing more than one million pounds. read more ...

 

50 Years of House Prices

 

An Increase in Sellers Cools House Prices

According to the Royal Institute of Chartered Surveyors (RICS) supply is finally starting to outstrip demand in the housing market.  Its figures reveal that the number of people putting their houses up for sale in February was double that of those looking to buy.  This is the second month in a row that the institute has reported the amount of instructions to sell exceeding the number of potential buyers.  The lack of supply of vendors was thought to be the major factor in the recent resurgence of house prices, but this latest data may indicate a new trend that could slow down, or even reverse, recent price rises. read more ...

 

Endowment Mortgage Misery

Millions of homeowners on endowment mortgages are set to realise just how short their policies have fallen in the next five years.  The boom years for sales of endowment mortgages was between 1988 and 1993, when around four in every five homeowners were sold one.  Many borrowers bought into these policies, believing that they could reap a return of around £100,000 with an investment of as little as £50 per month.  read more ...

 

Estate Agents Could Lose Out in OFT Shake Up

 

Are House Prices Rising in Your Area?

 

We’ve heard a lot about house prices recently, but the latest research from Hometrack suggests that house prices are rising in just 7% of postcodes. The table below is a comprehensive list of the postcodes in which prices are rising. read more ...

 

Strong Start to 2010 for House Prices

The Nationwide Building Society have been the first major mortgage lender to throw in its statistics for the New Year, and it continues to be good news for homeowners. Its data shows that prices rose by 1.2% in January and that house prices are up 8.6% year-on-year. The average value of a typical UK property is now £163,481. Unless there is a fall in property values in February, we could be looking at a double-digit value in house inflation for the first time since May 2007. However, the three month on three month rate of change (seen as a more reliable indicator) was down slightly at 2.1% from the 2.3% cited in December. read more ...

 

Lenders Compete for Custom by Cutting Mortgage Rates

Mortgage lending is still far from the free-for-all experienced in the property boom-time of the early noughties, but the first few weeks of 2010 have seen lenders getting a bit more interested in vying for custom.  Fixed rate deals have seen the biggest cuts with Yorkshire Building Society being top of the list with a 0.6% cut on its two-year fixed rate mortgage.  Nationwide, Woolwich, Halifax, HSBC, Santander, and ING Direct have also lowered their rates. read more ...

 

Can the ‘Irrational Rally’ of House PricesContinue in 2010?

Dubbed the ‘irrational rally’ by economists, everyone is wondering if the rise in house prices can continue this year.  2009 was very much a year of two halves for the property market: at the beginning of the year house prices were in free fall. read more...

 

House Prices up 0.9% in November

The latest Government figures from the Land Registry show a rise in house prices for the sixth consecutive month.  The rise of 0.9% was higher than the 0.6% cited for the previous two months and it puts the average house value in England and Wales at £161,554.  Although other agencies, such as major mortgage lenders, have been reporting rising housing prices for longer, the Land Registry statistics are always seen as being more accurate because they are based on sale completions.  Averaged across the country, house prices are now just 0.3% lower than one year ago. read more...

House Prices Remain Buoyant

The housing market remains strong as house prices continued to rise in November, according to the latest research from the Royal Institute of Chartered Surveyors (RICS).   It said that 35% more of its members reported a rise during the month than those that reported a fall – the highest level since November 2006. read more...

 

Top Incentives for Homebuyers

This is the Christmas of big discounts in the shops, but it could also be a festive period of great deals for homebuyers. Big-name house builders are slashing their prices by up to 50% for those savvy enough to haggle.  Bulk buyers who are purchasing more than one property on a development are getting the best deals but those buying a single property are still being offered some impressive incentives.  These are some of the deals currently on offer: read more...

How You Pay Extra to Live Near a Good School

The latest research by the Nationwide suggests that you could pay a premium of up to £8,000 to buy a house in the catchment area of a good primary school.  The building society looked at the impact on house prices of the local primary school having 10% more 11 year-olds, who achieved a level four or above, in their key stage 2 Standard Assessment Tests (SATs), than surrounding schools.  Its findings suggested that you will pay between 2.6% and 4.6% if the property is close to such a school, depending on where you are in the country. read more...

 

Mortgage Lending Picks Up

Figures released by the Council of Mortgage Lenders (CML) show that lending picked up in the month of October after the summer lull.  A total of £13.5bn was advanced during the month, compared with £12.9bn in September.  However, this figure is 27% less than for October 2008.  The group said that the 5% increase was in line with normal seasonal trends seen in the last decade and that the market traditionally picks up in September and October after a drop in the holiday month of August. read more...

 

Repossessions Loophole Exposed

The Government is apparently working hard to close off a repossession loophole that has recently been exposed, which allows lenders to force people out of their homes without having to go to court.  This practice came to light last year when a mortgage provider (GMAC) sold a property to another company called Horsham after the owner got into mortgage payment arrears.  When the couple who lived in the property failed to leave, Horsham issued trespassing proceedings against them.  The judge found in the company’s favour and the couple were forced to leave. read more...

 

Lenders Ease up on Mortgage Conditions

The strict conditions imposed on mortgage borrowers when the credit crunch hit are starting to be eased by lenders. This is according to information provided by the financial information service Moneyfacts, who say that the number of mortgages available that require a 15% deposit has gone up from 189 to 226 in the past month. This is in comparison to available mortgages that require a 20% deposit, which has gone down from 136 to 117. However, Moneyfacts admit that 66% of all mortgages still require at least a 25% deposit. read more...

 

Another Rise in house Prices Reported by Nationwide

House prices are higher than they were one year ago says the Nationwide.  That’s no mean feat when you rewind to the start of this year when property value was in freefall in many areas of the country.  The building society say that house prices went up by 0.4% in October and are 2% higher than at the corresponding time in 2008 (the first annual rise cited in 19 months).  This is the sixth consecutive monthly rise reported by Nationwide and brings the average house price up to £162,038. read more...

 

Positive News from RICS for the Housing Market

According to the Royal Institute of Chartered Surveyors (RICS), more estate agents are reporting rising house prices than at any time since the credit crunch took hold.  In fact, with 22% more agents reporting rises than falls, the proportion is at its most positive since May 2007 – the peak of the housing boom.  This RICS statistic from the month of September has more than doubled from the previous month, up from 10% in August. read more...

 

Latest House Price Statistics

The latest house price statistics show that prices are still generally rising, but this does vary quite significantly, depending on where you live.  The last word from the big two lenders was positive; Nationwide said that prices rose by 0.9% in September with the average house now being worth £161,816.  Halifax has yet to release its figures for last month, but the August press release showed an average rise of 0.8%. read more...

 

Property Market still Tough for First-Time Buyers

Despite the base rate of interest being at an all time low and most areas in the UK having experienced around a 20% fall in property prices, first-buyers are still finding it incredibly difficult to get on the property ladder.  This is because they are effectively being ‘penalised’ by lenders because they are unable to put down big deposits.  Since the credit crunch began lenders have reserved their best rates for borrowers who could put down a whopping 25% to 40% deposit.  For most first-time buyers, this figure is a pipe dream, and even if they can scrape together a 10% deposit – the best they can realistically hope for is an interest rate of around 6%, fixed for two years. read more...

 

Warning on House Prices form Research Council

Latest research from the Government-funded Economic and Social Research Council (ESRC), warns that house prices could continue to go down for a further three years.  In addition to it stating that unemployment and the number of divorces were likely to rise, it said that the numbers of buyers and sellers would drop out of the property market, causing prices to drop. read more...

 

Can You Afford Your Place in the Sun?

Almost half a million Britons own a holiday home overseas.  British buyers had helped to fuel a global property boom, but even in the most popular hotspots of southern France and central Italy it has come to a stuttering halt.  For some it’s still an affordable luxury but for others it has turned into a financial drain due to the falling price of property around the world and the falling value of the pound.  However, with sterling rallying slightly and many holiday home owners looking to sell – maybe this could be your time. read more...

 

House Prices up Four Months in a Row

According to the latest press release from Nationwide, house prices went up by a further 1.6% in August.  This is the fourth consecutive monthly rise cited by the building society, which now puts the average house price at £160,224 – around £10,000 pounds more than in January’s report.  The 3 month on 3 month rate of change, which is generally a better indicator of the current trend, rose from 2.7% in July to 3.3% in August – this is the highest level cited by the Nationwide since February 2007.  The average house price, however, is still slightly lower than 12 months ago. read more...

 

The Interest-Only Mortgage Gamble

Millions of home owners have been caught out by gambling on an interest-only mortgage.  Many saw this type of loan as a way into a more desirable property or, in the case of many first-time buyers, as a way onto the market.  At the peak of the last property boom, more than 30,000 families per month were taking out interest-only mortgages, many having no investment vehicle to pay off the capital, gambling on the fact that property prices would continue to rise and that the growing equity would help them pay off their loans. read more...

 

Rabbit Hutch Britain

 

House Prices Predicted to Rise Next Year

According to the Centre for Economics and Business Research (CEBR) the property market is about to bottom out at 25% less than its 2007 peak and we will see ‘modest’ price increases next year.  It says that prices could fall by a further 3% to 5% but a ‘chronic undersupply’ of housing and a predicted pick up of mortgage lending in 2010 will stop the market falling any further.  Following on from this the Centre predict that prices will rise by 2% next year and by a further 3.5% in 2011. read more...

 

OFT Target Sale and Rent Back Companies

A recent crack down by the Office of Fair Trading (OFT) has put a number of sale and rent back firms on the back foot.  Twelve such companies have had to change the wording of their advertisements or have removed their websites from the internet.  These companies typically offer a swift purchase from struggling home owners and then allow them to rent the property.  The catch being that the homeowner is given only around 70-80% of the market rate in exchange for the quick sale and being allowed to stay in their home. read more...

 

Mortgage Lending up by 17% in June

Slow start for HomeBuy Direct

Return of the 125% Mortgage

Nationwide are now offering a 125% mortgage to selected customers in negative equity.  The fixed rate deal allows borrowers stuck in negative equity a lifeline by allowing them to take out a loan of up to 95% of the value of a new home whilst simultaneously bundling in up to 30% of the loss of value of their old home.  Britain’s biggest building society stress that this is ‘for people in a very specific circumstance’ and borrowers will undergo strict affordability tests to ensure that they can meet the repayments. read more...

Neighbough Disputes - Know Your Rights

Excessive noise from a neighbour can be very stressful and can quickly grind you down.  The first step that you must take is to approach the neighbour directly, explaining politely what the issue is and generally letting them know that they are causing you a problem.  If this does not work, then the next step should be to write to them, giving specific examples of noise activity and how it affected you.  These steps may not always be possible if the neighbour in question will not listen or is abusive but you have to prove that all avenues have been exhausted before you can take the matter further with the Local Authority. read more...

 

Brown The Builder

Gordon Brown has made it very clear that building ‘affordable’ housing is his top policy to try and win the next election – even if it means controversial cuts in other areas such as roads, education and health.  The policy document called ‘Building Britain’s Future’ promises that investment in housing will be trebled to 2.1bn, funding 110,000 new affordable homes over two years, creating 45,000 jobs in construction. read more...

 

Is your home at risk from flooding?

Gloomy news from the Environmental Agency suggests that one in six homes in the UK is in danger of flooding.  It says that 500,000 properties face ‘significant’ chance of flooding from sea, river or surface water in any year and that the figure could rise to 830,000 by 2035 if investment in flood defences continue at current levels.  Coinciding with the two-year anniversary of the 2007 floods which hit cities and towns such as Sheffield, Doncaster, Kingston-up-on-Hull and Tewkesbury, the Agency has published its long-term investment strategy.  The document sets out the scale of investment needed to combat climate change over the next 25 years. read more ...

How to Reduce the Tax Bill on Your Home

With the MPs’ expenses still very much in the news you may well have heard the term ‘flipping’, in relation to second homes.  It is a technique used to avoid paying Capital Gains Tax (CGT) by using ‘time to sell’ rules and the nomination of a property as a main residence.  Well you may be pleased to learn that this practice is not just reserved for those in positions of power – the great unwashed can do it too. read more...

 

House Prices: The North/South Gap Widens

Historically, you have always had to pay more for a house in the South of England.  In 1995 the average house price in London was £92,212, £72,018 in the South East and only £55,057 in the North East.  Go forward to the present and those figures come in at £302,411 for London, £187,124 for the South East and £106,769 for the North East.  Using these figures we can see that the cost of property in London has more than tripled, in the South East it has increased by more than two and a half times, whilst in the North East they have not quite doubled. read more...

 

House Prices on the Up say Nationwide

The Nationwide’s house price index could be a ray of hope for homeowners – it showed a rise of 1.2% for the month of May.  This is the second rise that the bank has cited in the last three months.  The average price of a home now stands at £154,016, which is a similar value to that of March 2005.  Other statistics that the Nationwide produce are the annual rate of fall, which has recovered from 15% to 11.3%, and the quarter on quarter indicator, which also eased from -3.0% to -0.5%. read more...

 

England’s Social Housing Time Bomb

Research carried out by the National Housing Federation for ITV has shown that 1 in 10 people could be on the social housing waiting list by 2020.  Significantly, this is the deadline by which Gordon Brown promised to deliver three million new homes.  In a country currently gripped by a financial crisis, 4.5 million people are currently on social housing waiting lists.  However, according to this latest research, the situation is set to markedly deteriorate over the next decade due to factors such as repossession, immigration and an often inaccessible mortgage market. read more...

Repossessions Continue to Rise

Figures from the Council of Mortgage Lenders (CML) show that 140 homes are being seized each day, a rise of 50% year-on-year between the first quarters of 2008 to 2009.  There were 12,800 properties repossessed in the first three months of this year – a rise of 23% on the last quarter of 2008.  In the first three months of 2008, there were only 8,500 repossessions. read more...

 

Think Tank Calls for Mortgage Limits

A study by the Institute for Public Policy Research (IPPR) has recommended that strict limits be put on residential mortgage lending to avoid the boom and bust scenario that the country’s property market is currently experiencing.  The paper is titled ‘The Madness of Mortgage Lenders: Housing Finance and the Financial Crisis’, and was written by Chris Hamnett, a professor at Kings College London.  In it he argues that the current slump is being magnified by the massive growth that the mortgage market experienced before it, recommending that, in future, buyers should stump up at least a 5% deposit (25% for buy-to-let mortgages) whilst simultaneously being restricted to a multiple of 3.5 times their joint incomes.  By doing this, banks would be able to place a ceiling on how potential borrowing can push up property prices. read more...

 

House Prices: A British Obsession

A recent survey has shown that Brits are still obsessed with property prices, despite the current financial recession.  The sheer accessibility of data on the internet is the main driver for this obsession with those aged between 24 and 35 being the most obsessed age group.  The poll also found that around 70% of the people polled still looked at property online even when they had no intention of moving. read more...

 

Dirty Tricks of the Estate Agent

Estate agents have never been the most popular people in the world, but recent investigations by undercover investigators and the Consumers’ Association have shown that some agents are acting unlawfully and using blatant lies in their efforts to sell properties. Complaints to the Ombudsman rose by 16% in 2008, to 6,462, but it is believed that this may just be the tip of the iceberg. read more...

 

The Chancellor’s £1bn Budget Plan to Rescue the Housing Market

Alistair Darling has unveiled a £1bn emergency boost to the housing market in the 2009 budget.  The money will be earmarked for building more council homes, extending the stamp duty holiday until the end of the year and to kick-start building projects that have been mothballed.  The chancellor has made the housing market a priority despite the poor state of the government’s finances.  The lion’s share of this cash (£600m) will go towards stimulating housing development.  Stalled developments and affordable housing (including HomeBuy Direct) will get £400m of this figure with £100m earmarked for local authorities to deliver new social housing. read more...

 

HSBC to Start a Mortgage Price War?

HSBC have laid down the gauntlet for its rivals by lowering its rates for home buyers with small deposits.  The bank has pledged to lend £1bn to borrowers with deposits of just 10%.  The move is expected to breathe new life into a stagnant housing market by throwing first-time buyers a lifeline.  During the recession banks have been much more nervous about whom they lend to and have been freezing out all but borrowers with large deposits by charging sky-high interest rates or arrangement fees to those who haven’t.  Even some of those borrowers prepared to pay inflated rates are being turned down for not having spotless credit histories.
The products on offer for 10% deposit holders consists of a tracker mortgage at 4.59% (with no exit fee or tie-in) and a two-year fixed-rate deal at 4.99%.  The bad news is that there is a £1,499 arrangement fee, but it still significantly undercuts the opposition.  Financial analysts believe that other lenders will soon be following suit with Lloyds TSB rumoured to be already planning a response.  David Hollingworth from mortgage brokers London & Country said: “If HSBC’s rivals start to lose business because of these low rates then they will soon look to counter.  If it does spark competition then all the better for homebuyers.” read more...

 

How the Cost of Buying a House has Soared

According to an investigation by the Mail newspaper, the cost of buying a home has risen by almost £2,000 in the past five years.  These increased costs include higher mortgage arrangement fees, deeds release fees, stamp duty and valuation fees.  However, perhaps the biggest gripe is the £200+ pounds that a seller has to pay for a Home Information Pack (HIP) – a measure recently brought in by the government to help guard against practices such as ‘gazumping’.  General opinion would indicate that these packs are almost universally regarded as a complete and utter waste of time and money. read more...

 

How Accurate are House Price Statistics? 

Today’s house market seems to be a barrage of never-ending statistics. So many agencies are busy supplying us with monthly, quarterly and yearly figures – but which ones should we pay attention to and which ones can we happily ignore? Here is a summary of the ones to watch: read more...

 

Mixed News for the Housing Market

The latest data on the housing market suggests that although prices are still falling, mortgage approvals and sales are on the up. The country’s biggest mortgage lenders, Halifax and Nationwide stated that house prices had fallen in February by 2.3% and 1.8% respectively with Halifax citing the value of an average house at £160,327 and Nationwide’s figure coming in at a much more pessimistic £147,746. This is a fall of 17.7% for Halifax and a nearly identical 17.6% for Nationwide. read more...

 

Selling Your Home in a Buyers’ Market

You may be excused for thinking that this is probably the worst time to try and sell your house. Statistics tell us that, depending on where you live, house prices have fallen around 20% from their 2007 peak. Couple this with the fact that a lot of potential buyers are struggling to raise the finance and you are faced with something of a challenge. However, if you get certain things right, there is no reason why you can’t get a satisfactory result. read more...

 

House Prices continue to fall

According to the Halifax, house prices slumped by a further 2.3% in February with the average house now being worth £160,327.  This means that despite the bank showing a surprise 1.9% rise in January, house prices are now down 17.7% on the same time last year.  The current average house price has now slipped back to August 2004 levels with £34,600 wiped of its value in twelve months.  The bank’s chief economist Martin Ellis said: “Continuing pressures on incomes, rising unemployment and the negative impact of the dislocation of the financial markets on the availability of mortgage finance are, however, likely to mean that 2009 will be another difficult year for the housing market.” read more...

 

FSA want Higher Deposits from Homebuyers