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Good news for serious movers

Rightmove report that steadfast buyers are highly committed to getting a sale completed in the current market. The percentage of sales agreed that have fallen through this year is the lowest since 2015.

This is despite the number of sellers coming to market being down by 13.5% compared to this time last year. Sluggish prices and Brexit developments appear to put off some speculative sellers, but buyers remain undeterred as the number of sales agreed is virtually unchanged (-0.5%) on the same period a year ago.

Rightmove’s property expert Miles Shipside said: “In a strange Brexit-induced paradox, thousands of potential sellers are holding back compared to this time a year ago, though the number of buyers agreeing purchases is virtually the same. Ironically, this means that those who are coming to market have a better chance of selling, so while some would-be sellers are being put off, it’s actually a good time to sell.”

The ongoing uncertainty surrounding Brexit evidently continues to cause many sellers to hesitate and sit tight, however, there is a healthy level of sales still transacting.

Henry Knight, Managing Director of Springtide Capital commented:

“In such a price sensitive market, only the serious home buyers and sellers are deciding to take the plunge. With a reduced number of less committed parties, we have seen a reduction in the number of sales falling through, which is a definite positive to take from the current climate.”

UK yet to experience ‘Autumn bounce’

Rightmove’s data scientists have seen a smaller than usual Autumn price bounce (the annual increase in house prices between the slower summer and Christmas periods). The price of property coming to the market at this time of year usually experiences this Autumn bounce, with an average rise of 1.6% in the month of October over the last ten years. The price of property coming to market is seeing its lowest monthly rise at this time of year since October 2008, up by just 0.6% (+£1,942).

Nick Leeming, chairman of Jackson-Stops, said: ‘Although the UK is yet to experience an autumn bounce it doesn’t mean one isn’t on its way. The data shows that sales aren’t falling through as regularly as they have been, which suggests that the market is currently being driven by must-movers.’

London

Rightmove reports that there were 29.2% fewer new sellers than same period a year ago, deterred from trying to sell by continuing year-on-year price falls and short-term Brexit uncertainty. The number of sales agreed is up 0.8% on this time last year, indicating the commitment of serious movers in this market.

With buyer activity holding steady, it highlights that those who are buying are committed and focused on making transactions go through, a positive for those who have come to market and are serious about selling.

At Springtide Capital we provide high quality impartial mortgage advice. We are a specialist mortgage broking business committed to providing a personal and efficient service. We understand the complexities of finding the right loan to suit both your financial and personal circumstance.

To speak to us today, call Springtide Capital on 020 3040 4400

Sources:

https://www.rightmove.co.uk/news/content/uploads/2019/10/Rightmove-House-Price-Index-21-October-2019.pdf

https://www.thisismoney.co.uk/money/mortgageshome/article-7593637/With-Brexit-looming-really-good-time-sell-home.html

 

Gross mortgage lending for September 2019 stands at £22.3 billion

According to the latest Household Finance Update from UK Finance, Gross mortgage lending across the residential market in September 2019 was £22.3 billion, 3.7 per cent higher than in the same month in 2018.

  • There were 85,880 mortgages approved by the main high street banks in September 2019.
  • Mortgage approvals for home purchase were 13.5 per cent higher, remortgage approvals were 23.4 per cent higher.
  • Approvals for other secured borrowing were 8.5 per cent higher than in September 2018, which was a particularly subdued month for the mortgage market.

THE ECONOMY

  • The Office of National Statistics reported that the Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 7% in September 2019, unchanged from August 2019
  • The Consumer Prices Index (CPI) 12-month inflation rate was 1.7% in September 2019, unchanged from August 2019

HOUSING

Only minor changes month on month in the UK housing market according to Nationwide figures:

  • Annual house price growth dipped to 0.2% in September
  • Modest 0.2% price fall during the month, after taking account of seasonal factors
  • Annual price declines persist in London and the South East
  • Average Price (not seasonally adjusted) £215,352

Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said:

“The underlying pace of housing market activity has remained broadly stable, with the number of mortgages approved for house purchase continuing within the fairly narrow range prevailing over the past two years. Healthy labour market conditions and low borrowing costs appear to be offsetting the drag from the uncertain economic outlook.”

Support for reservation agreements

Chestertons estate agency have spoken out in favour of reservation agreements, supporting the latest initiative from the Ministry of Housing, Communities and Local Government, reveal Estate Agent Today.

“Property transactions fall through far too frequently and this is due to a wide range of factors, including changes in personal or financial circumstances, changes of heart and disagreements over specific terms of the deal. We hope the government takes steps to ensure that people who do have to pull out of a deal for reasons beyond their control are not penalised, although what constitutes a ‘good’ fall-through and a ‘bad’ one will no doubt be subject to a lot of debate.” says Guy Gittins, Chestertons’ managing director.

According to the Home Owners Alliance Survey more than 300,000 property transactions collapse every year due to broken chains and buyers changing their mind.

The MHCLG has said that a trial of reservation agreements will take place in the New Year, in two so-far unspecified regions of the country; the conveyancers and agents who will be involved have also not been selected yet, according to Estate Agent Today.

Mortgage Lenders and Administrators Statistics – 2019 Q2

The Mortgage Lenders and Administrators Return (MLAR) is a quarterly statistical release aggregated from data on mortgage lending activities provided by around 340 regulated mortgage lenders and administrators. Key findings released in September include:

  • The outstanding value of all residential mortgage loans was £1,461 billion in 2019 Q2, 3.1% higher than a year earlier.
  • The value of gross mortgage advances was £66.1 billion in 2019 Q2, 1.0% lower than a year ago.
  • The value of new mortgage commitments (lending agreed to be advanced in the coming months) was broadly unchanged compared to a year earlier, at £73.4 billion.
  • The share of mortgages advanced in Q2 with loan to value (LTV) ratios exceeding 90% was 5.5%, the highest since 2008 Q4.
  • The share of gross mortgage lending for buy-to-let purposes (covering house purchase, remortgage and further advance) was 13.1%, in line with a year earlier.
  • Lending to owner-occupiers for house purchase accounted for 50.5% of total gross mortgage advances in Q2. Of this, 21.3% was to first-time buyers, which is consistent with a year earlier. The share of lending to home movers increased marginally in the year to 29.2%.

Sources:

https://www.ukfinance.org.uk/data-and-research/data/household-finance/household-lending-and-deposits

https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/september2019

https://www.nationwide.co.uk/-/media/MainSite/documents/about/house-price-index/2019/Sep_Q3_2019.pdf

https://www.estateagenttoday.co.uk/breaking-news/2019/10/another-agency-backs-reservation-agreements-to-cut-fall-throughs

https://hoa.org.uk/2018/05/selling-pain-points/

https://www.bankofengland.co.uk/statistics/mortgage-lenders-and-administrators/2019/2019-q2

Gross mortgage lending for July 2019 stands at £26.1bn

According to the latest Household Finance Update from UK Finance, Gross mortgage lending across the residential market in July 2019 was £26.1bn, 4.0 per cent lower than the same month in 2018.

  • This is 2.9 per cent higher than the same month in 2018 and the highest since March 2016.
  • There were 95,126 mortgages approved by the main high street banks in July 2019, the highest monthly total since July 2009 when the figure stood at 99,970.
  • Mortgage approvals for home purchase were 16.4 per cent higher, remortgage approvals were 19.4 per cent higher.

THE ECONOMY

  • The Office of National Statistics reported the Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 2.0% in July 2019, increasing from 1.9% in June 2019.
  • The Consumer Prices Index (CPI) 12-month rate was 2.1% in July 2019, increasing from 2.0% in June 2019

HOUSING

The Nationwide reported the following for July:

  • Slight slowing in the rate of annual house price growth to 0.3%
  • Modest 0.3% month-on-month rise, after taking account of seasonal factors
  • Average Price (not seasonally adjusted) £217,663

Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said:

“Annual house price growth remained below 1% for the eighth month in a row in July, at 0.3%. While house price growth has remained fairly stable, there have been mixed signals from the property market in recent months. “Surveyors report that new buyer enquiries have increased a little, though key consumer confidence indicators remain subdued. Data on the number of property transactions points to a slowdown in activity, though the number of mortgages approved for house purchase has remained broadly stable”

The Bank of England highlighted the fact that mortgage market activity has remained stable. Mortgage approvals for house purchase being at their highest level since July 2017. Net mortgage lending rose in July to £4.6 billion. Mortgage approvals for house purchase (an indicator for future lending) increased in July to 67,300.

Henry Knight, Managing Director from Springtide Capital commented:

“The July figures from UK Finance are the most encouraging for a while. The mortgage approvals figure was positive and we expect to see first-time buyer numbers continuing to increase across the whole country, including London”

At Springtide Capital we provide high quality impartial mortgage advice. We are a specialist mortgage broking business committed to providing a personal and efficient service. We understand the complexities of finding the right loan to suit both your financial and personal circumstance.

To speak to us today, call Springtide Capital on 020 3040 4400

Sources:

https://www.ukfinance.org.uk/data-and-research/data/household-finance/household-lending-and-deposits

https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/july2019

https://www.nationwide.co.uk/-/media/MainSite/documents/about/house-price-index/2019/Jul_2019.pdf

https://www.bankofengland.co.uk/statistics/money-and-credit/2019/july-2019

Changing attitudes towards lending and property in later life

With the UK’s population living longer, attitudes regarding property and financial planning are changing across the UK. Statistics and projections produced by Office for National Statistics (ONS) show that the UK’s population is ageing. The ONS states that in 50 years’ time, there are likely to be an additional 8.6 million people aged 65 years and over residing in the UK.

Research by the The Equity Release Council, titled ‘Beyond bricks and mortar: the changing role of property in later life financial plans’ states that 51% of older homeowners are now factoring their homes into their later life plans. A further 44% feel taking out a mortgage or loan to access property wealth in later life is becoming a more common way to manage money, while 40% see it as a “reality” of ageing. The Equity Release Council represent the equity release sector and their aim is to promote high standards of conduct and practice in the provision of and advice on equity release. David Burrowes, their Chairman, states:

‘While the ‘home for life’ mentality persists, our findings suggest people are increasingly thinking of property as a multipurpose financial asset – particularly those aged 45-64 who represent the retirees of tomorrow. There are also signs of willingness to use housing assets during their lifetimes through loan-based products, with resistance driven by practical barriers rather than entrenched views about the traditional roles of property.’

Exploring an untapped resource

Home improvements, supplementing your retirement income or providing financial support for family are some of the reasons people consider equity release in later life.

The report states that property largely remains an untapped resource during many people’s lifetimes, despite their awareness of its potential. Only 4% of over-65 homeowners say they have used property wealth to support themselves in the last year, while 3% have used it to support friends or family.

Henry Knight, MD from Springtide Capital Comments:

‘The retirees of tomorrow increasingly plan to use money invested in property as a ‘nest egg’ for unexpected expenses or to help family members while they are still alive. The UK continues to develop a successful strategy to balance the financial needs of old and young and property has a central role to play. In the financial services industry, the Later Life lending proposition is evolving including improvements in product innovation, consumer education and communication.”

Practicalities

The report shows a growing acceptance among homeowners to view bricks and mortar as a way to support multiple financial goals during their lifetimes. This is particularly evident among those aged 45-64, who are motivated by the potential to help themselves and younger generations.

The most common perceived barrier that older consumers identify when considering a mortgage, loan or financial product as a route to access property wealth in their lifetimes all relate to practical considerations, such as decision-making, cost, flexibility, inheritance plans and financial education.

While the report highlights there is significant intent to use – or at the very least consider – residential property as part of later life planning, current activity suggests more needs to be done to encourage people to take proactive steps. The Council has called for action spanning consumers and their families, industry, regulators and government, to support financial education, product development, consumer safeguards and policy planning. This includes establishing a cross-party Later Life Commission and a dedicated Minister for the Elderly.

At Springtide Capital we are able to deliver solutions tailored to your personal situation, please contact us and one of our qualified specialists will be able to provide you with a personalised illustration.

To speak to us today, call Springtide Capital on 020 3040 4400 to book an appointment.

Sources:

https://www.ons.gov.uk/peoplepopulationandcommunity/birthsdeathsandmarriages/ageing/articles/livinglongerhowourpopulationischangingandwhyitmatters/2018-08-13

https://www.equityreleasecouncil.com/about/

https://www.equityreleasecouncil.com/documents/beyond-bricks-and-mortar-the-changing-role-of-property-in-later-life-financial-plans/

Gross mortgage lending for June 2019

Gross mortgage lending for June 2019 stands at £21.9bn

According to the Household Finance Update from UK Finance, Gross mortgage lending across the residential market in June 2019 was £21.9bn, 4.0 per cent lower than the same month in 2018.

  • The number of mortgages for home purchase approved by the main high street banks in June 2019 was 2.9 per cent higher than in the same month in 2018.
  • Remortgage approvals were 1.4 per cent lower and approvals for other secured borrowing were 5.3 per cent lower than the same month a year earlier.

MORTGAGES

Mortgage Lending Trends

  • There were 32,760 new first-time buyer mortgages completed in June 2019, 1.5 per cent fewer than in the same month in 2018. There were 31,000 home mover mortgages completed in June 2019, 3.6 per cent fewer than in the same month a year earlier.
  • There were 16,880 new remortgages with additional borrowing in June 2019, 8.3 per cent more than in the same month in 2018.
  • There were 5,300 new buy-to-let home purchase mortgages completed in June 2019, 3.6 per cent fewer than this time last year. There were 12,500 remortgages in the buy-to-let sector, 0.8 per cent fewer than the same month in 2018.

Positive Broker Influence

In the LMS Monthly Remortgage Snapshot, it is reported that 67% of borrowers picked a remortgage product because it had been recommended by a broker. This positive figure reflects the importance of brokers in the modern remortgage market and highlights the value of qualified advice.

Henry Knight, Managing Director of Springtide Capital commented:

“In using a mortgage broker, you will receive an expert opinion on which is the best mortgage for you in terms of the interest rate and the likelihood of your application being accepted. This expertise will save significant time and offers an in depth understanding of the whole market”

UK Finance released their Annual ranking of mortgage lenders by outstanding balances and gross lending

THE ECONOMY

  • The Office of National Statistics reported that the Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 1.9% in June 2019, unchanged from May 2019.
  • The Consumer Prices Index (CPI) 12-month rate was 2.0% in June 2019, unchanged from May 2019.

HOUSING

Only minor changes month on month in the UK housing market according to Nationwide figures: 

  • Annual house price growth remained subdued at 0.5% in June
  • Modest 0.1% price rise during the month, after taking account of seasonal factors.
  • Annual price falls persist in London and the South East
  • Average Price (not seasonally adjusted) £216,515

Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said:

“Survey data suggests that new buyer enquiries and consumer confidence have remained subdued in recent months. Nevertheless, indicators of housing market activity, such as the number of mortgages approved for house purchase, have remained broadly stable”

Sources:

https://www.ukfinance.org.uk/sites/default/files/uploads/Data%20(XLS%20and%20PDF)/Household-Finance-Update-June-2019.pdf

https://www.ukfinance.org.uk/data-and-research/data/mortgages/lending-trends

https://corporate.lms.com/app/uploads/2019/08/LMS-June-Snapshot-2019.pdf

https://www.ukfinance.org.uk/data-and-research/data/mortgages/largest-mortgage-lenders

https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/june2019

https://www.nationwide.co.uk/-/media/MainSite/documents/about/house-price-index/2019/Jun_Q2_2019.pdf

 

Do I need a Mortgage Broker?

Mortgage advice from a reputable, independent broker can be an invaluable part of the mortgage process and can offer a wealth of experience, here’s how….

Before offering you advice, mortgage brokers have to go through a lengthy training process to become qualified and will build up a wealth of professional knowledge over that time.

A mortgage broker can offer you unbiased advice from a wide range of lenders and subsequent mortgage products, trying to secure the best deal to suit your needs.

Which? analysis has found more than four in ten mortgages are broker-only, meaning you’re unlikely to find them on comparison sites. For the purchase of a buy-to-let property, the proportion of broker-only deals rises to almost two-thirds. The use of brokers in the buy-to-let market may be having a significant effect on the number of applications that result in an offer. Data from the Intermediary Mortgage Lenders association shows that 89% of buy-to-let applications are successful.

The application process for a mortgage can differ from lender to lender so having a Mortgage Broker who is familiar with the varying processes is an advantage. Making your application through a mortgage broker should save you time also, due to the fact that your broker should have used their expert knowledge of criteria to mitigate any potential risks and match you to the most suitable lender. Some low rates may have hidden fees or may not be entirely suitable for your circumstances so using the services of a mortgage broker with expert knowledge should help you to avoid these pitfalls. Don’t be put off by the ‘middleman’ aspect of the mortgage broker.

Applying direct may suit some borrowers, but if you are looking for a helping hand to guide you through the mortgage process, then using a broker has many advantages.

Henry Knight at Springtide Capital highlights:

“In using a mortgage broker, you will receive an expert opinion on which is the best mortgage for you in terms of the interest rate and the likelihood of your application being accepted. This expertise will save significant time and by having an in depth understanding of the whole market, a broker is able to add value by advising on what is and isn’t possible from the outset.”

Springtide Capital look to assist borrowers in obtaining competitive, bespoke mortgage solutions often on exclusive terms for the following:

We also provide personal and property protection advice.

To speak to us today, call Springtide Capital on 020 3040 4400 to book an appointment with a mortgage consultant.

Sources:

https://www.which.co.uk/news/2019/06/could-you-get-a-better-mortgage-rate-by-using-a-broker/

http://springtidecapital.com/

Gross mortgage lending for May 2019 stands at £21.9bn

According to the latest Household Finance Update from UK Finance, Gross mortgage lending across the residential market in May 2019 was £21.9bn, 0.4 per cent lower than the same month in 2018.

  • The number of mortgages for home purchase approved by the main high street banks in May 2019 was 9.1 per cent higher than in the same month in 2018, reaching its highest level since June 2016.
  • Remortgage approvals were 3.7 per cent lower and approvals for other secured borrowing were 5.9 per cent higher than the same month a year earlier.

THE ECONOMY

  • The Office of National Statistics reported that Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 1.9% in May 2019, down from 2.0% in April 2019.
  • The Consumer Prices Index (CPI) 12-month rate was 2.0% in May 2019, down from 2.1% in April 2019.

HOUSING

Only minor changes month on month in the UK housing market according to Nationwide figures:

  • Annual house price growth slowed to 0.6%
  • Prices fall 0.2% month-on-month, after taking account of seasonal factors
  • Average Price (not seasonally adjusted) £214,946

Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said:

“Housing market trends are likely to continue to mirror developments in the broader economy. While healthy labour market conditions and low borrowing costs will provide underlying support, uncertainty is likely to continue to act as a drag on sentiment and activity, with price growth and transaction levels remaining close to current levels over the coming months”

Henry Knight, Managing Director of Springtide Capital commented:

“Mortgage lending proved resilient in May. Remortgage activity and first-time buyers continue to drive lending so far in 2019. Looking ahead, this trend is likely to continue, but the level of this will depend heavily on the economy.”

Mortgage Lenders and Administrators Statistics – 2019 Q1

The Mortgage Lenders and Administrators Return (MLAR) is a quarterly statistical release aggregated from data on mortgage lending activities provided by around 340 regulated mortgage lenders and administrators. Their Q1 findings include:

  • The outstanding value of all residential mortgage loans was £1,451 billion in 2019 Q1, 3.4% higher than a year earlier.
  • The value of gross mortgage advances was £63.3 billion in 2019 Q1, 1.4% higher than a year ago
  • The value of new mortgage commitments (lending agreed to be advanced in the coming months) was £63.8 billion, 4.5% higher than a year earlier.
  • The share of mortgage loans with loan to value (LTV) ratios exceeding 90% increased to 4.5% in 2019 Q1, compared to 3.3% a year earlier. This is its highest since 2017 Q2.
  • The proportion of high loan to income (LTI) lending (loans greater than four times the value of annual income for a single buyer or greater than three times the annual income for joint buyers) was 45.0% in Q1, 0.8 percentage points (pp) higher than a year earlier.
  • The share of lending for buy to let (BTL) purposes (including house purchase, remortgage and further advance) was 14.0% in 2019 Q1, marginally lower than a year earlier.
  • Lending to owner occupiers for house purchase accounted for 46.1% of total gross mortgage advances. Of this, 19.2% was to first-time buyers, which is consistent with a year earlier. The share of lending to home movers decreased marginally in the year to 26.9%.

Sources:

https://www.ukfinance.org.uk/data-and-research/data/household-finance/household-lending-and-deposits

https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/may2019

https://www.nationwide.co.uk/-/media/MainSite/documents/about/house-price-index/2019/May_2019.pdf

https://www.bankofengland.co.uk/statistics/mortgage-lenders-and-administrators/2019/2019-q1

 

Gross mortgage lending for April 2019 stands at £20.3bn

According to the latest Household Finance Update from UK Finance, Gross mortgage lending across the residential market in April 2019 was £20.3 billion, 1.4 per cent lower than the same month in 2018.

  • In April 2019, the number of mortgages approved by the main high street banks was 5.4 per cent higher than the same month in 2018
  • Approvals for home purchase were 8.6 per cent higher, remortgage approvals were 2.2 per cent higher and approvals for other secured borrowing were 0.8 per cent higher

THE ECONOMY

  • The Office of National Statistics reported that the Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 2.0% in April 2019, up from 1.8% in March 2019
  • The Consumer Prices Index (CPI) 12-month rate was1% in April 2019, up from 1.9% in March 2019.

HOUSING

Uncertainty continues to dampen the housing market according to Nationwide figures

  • Annual house price growth remained subdued at 0.9% in April
  • Prices rose 0.4% month-on-month, after taking account of seasonal factors

Robert Gardner, Nationwide’s Chief Economist commented:

“While the ongoing economic uncertainties have clearly been weighing on consumer sentiment, this hasn’t prevented further steady gains in the number of first time buyers entering the housing market in recent quarters’

Henry Knight, Managing Director of Springtide Capital commented:

‘Buyer confidence remains relatively low, a likely consequence of the continued Brexit-related uncertainty and the current political environment. On a positive note there has been a modest shift in the balance of supply and demand in favour of buyers over the last several months’

Bank of England Statistics for April 2019

  • Net mortgage lending was £4.3 billion in April, slightly higher than the average of £3.8 billion seen over the previous six months
  • Net mortgage borrowing by households was strong for the second month in a row, relative to the recent past, in April at £4.3 billion. Over the previous six months it averaged £3.8 billion. The annual growth rate of mortgage lending remains unchanged at 3.3%, the level it has been at since August 2018
  • The number of mortgage approvals for house purchase, a leading indicator of mortgage lending, ticked up in April to around 66,300. This was close to the average of the past two years and reversed the fall seen in March. The number of approvals for remortgaging was broadly unchanged, at around 49,400

Lending Trends

  • According to UK Finance, there were 27,370 new first-time buyer mortgages completed in April 2019, 7.9 per cent more than in the same month in 2018. There were 25,450 homemover mortgages completed in April 2019, 6.4 per cent more than in the same month a year earlier.
  • There were 18,920 new remortgages with additional borrowing in April 2019, 0.3 per cent more than in the same month in 2018. For these remortgages, the average amount taken out in April was £54,000. Additionally, 19,140 were simple pound-for-pound remortgages (with no additional borrowing), 6.2 per cent fewer than in April 2018. In total, there were 3.1 per cent less residential remortgages in April 2019 than in the same month a year earlier.
  • There were 5,100 new buy-to-let house purchase mortgages completed in April 2019, the same as this time last year. There were 14,400 remortgages in the buy-to-let sector, also the same as this time last year.

Sources:

https://www.ukfinance.org.uk/data-and-research/data/household-finance/household-lending-and-deposits

https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/april2019

https://www.nationwide.co.uk/-/media/MainSite/documents/about/house-price-index/2019/Apr_2019.pdf

https://www.bankofengland.co.uk/statistics/money-and-credit/2019/april-2019

https://www.ukfinance.org.uk/data-and-research/data/mortgages/lending-trends

Buying a listed building-A challenge or a charm?

Owning a listed building has many pros and cons and according to Moneywise.co.uk and there are several aspects to consider before purchase.

England and Wales boast half a million listed buildings, each with its own story to tell.

What is Listed status England and Wales?

All buildings constructed before 1700 are listed, as are a significant amount of those built between 1700 and 1840. You can find out if a property is listed by searching for it on the National Heritage List for England.

Some modern buildings are listed too if they are considered of special importance, for example the Shadwell Basin development, Tower Hamlets, London, (above) is Grade II listed.

Listings help prevent any inappropriate renovations or alterations that could detract from a property’s historical interest.

Terminology

Grade I: This means the property is of ‘exceptional interest’. Only around 2.5% of listed buildings are Grade 1 listed.

Grade II*: This means the property is important and considered of more than special interest. Around 5.5% of listed buildings fall into this category.

Grade II: This means the building is of special interest. The vast majority of listed buildings, around 92%, fall into this category.

Homes with a heritage are usually aesthetically pleasing, positioned in prime locations as they were built a long time before any modern development. Listed homes also tend to be full of rustic charm or bursting with period features, but there are issues to consider such as more expensive insurance and renovation costs.

Pros

  • Knowing that you live in, and own, a historical building is a great feeling – you’re one of the privileged few who gets to enjoy being a part of history.
  • A listed building typically appreciates in value more than other properties – it’s almost unknown for a listed property to depreciate unless it’s been seriously damaged.
  • You may be able to get a grant for repair/upkeep of your listed building.

Cons

  • Listed buildings are expensive to insure. Many new owners don’t realise this but they are liable for any previous unauthorised building or restoration work. As rebuild costs are higher for listed properties, the average insurance quote is also fairly high.
  • You may or may not be able to make alterations or renovations to the property. You must first obtain approval of Historic England or your local conservation officer. Should your local authority consider that you’re not properly preserving the building, they are within the law to take actions against you for non compliance.
  • Essential repairs or renovations that have been approved must be undertaken using the same construction methods and materials that were used when the building was originally built. This can be more expensive than traditional methods.

The pleasure that comes from owning a listed building can be tempered by the responsibility to keep it in good repair and maintain its character. Regardless of this responsibility, many people each year, decide that this is a small price to pay for the joy it provides, not just to them, but to future generations. Renovating a listed home can also be incredibly rewarding and will help preserve an intriguing and unique piece of British history.

Sources:

https://www.moneywise.co.uk/home-mortgage/improvements/five-things-to-consider-buying-listed-property

https://www.directline.com/home-cover/buying-a-listed-property

https://historicengland.org.uk/listing/the-list/

 

London-a positive place to buy

The London housing market shows resilience according to the CBRE Global Living report. According to CBRE Residential, investments in urban areas such as transport infrastructure, connectivity, retail, cultural centres and housing are key drivers of economic growth.

The coming Elizabeth line railway, that will stretch over 60 miles across London, will stop at 41 accessible stations and is expected to serve around 200 million people each year. This improvement in the connectivity of many districts will reduce journey times significantly.

The Help to Buy London scheme is set to be revised and continue for a further two years. The scheme is an equity loan provided by the Government. In the scheme, the government currently lend up to 40% of the cost of a new build home in London, so the purchaser will need a minimum 5% deposit and a 55% mortgage to make up the rest.

Currently Central London properties have an average value of £659,660 (according to the current Zoopla estimate at time of publication, these figures are subject to change) whereas the average for the rest of the UK is £236,619.

Why invest now?

As a large city, London has few areas where more properties can be built, therefore the lack of house supply will always be a factor in pushing house prices up in the long term. In the current market, many mortgage products are available plus interest rates are at a historic low so it could be viewed as a very good time to invest. London also has a large and growing rental population, with private renters currently making up 28% of the city’s households.

Discounting

Sellers are realising that if they want to progress they are going to have to offer a discount. The current economic climate means that there are many reasons why people are putting off buying.

Today, buyers are in a strong position. The biggest savings can be made in the highest-value areas such as London, where house prices have been falling and transactions have been low for the longest time. This is reflected in data by LonRes, which shows that the number of properties going under offer in the second half of last year was 6 per cent higher than the same period in 2017.

 

 

As an example of small signs of recovery in the London market, the average price for property in Islington (London Borough) stood at £794,100 in May 2019. This is a rise of 2.17% in the last three months (since February 2019) and rise of 12.07% since 12 months ago. (according to the current Zoopla estimate at time of publication, these figures are subject to change.)

Henry Knight from Springtide Capital commented:

“Clients who may have delayed for a year or two waiting for clarity, are unlikely to be willing to delay further. With mortgage rates close to historic lows, buyers across the country are getting back to business as usual and are re-establishing the search for their dream home.

With house prices in London still down from their peak, this represents a good time to buy.”

Sources:

https://www.cbreresidential.com/uk/en-GB/content/london-0

https://www.cbreresidential.com/uk/en-GB/researc

https://www.halifax.co.uk/media-centre/house-price-index/

https://www.zoopla.co.uk/house-prices/london/

https://tfl.gov.uk/travel-information/improvements-and-projects/elizabeth-line

https://www.helptobuylondon.co.uk/equity-loan/equity-loans

https://www.helptobuylondon.co.uk/

https://www.lonres.com/public/resources/latest-publications/lonres-firstsight-now-time-buy-prime-central-london

https://www.zoopla.co.uk/house-prices/islington-london-borough/