Real Estate & Mortgage News in United Kingdom from Propertyshowrooms.com

Quiet summer forecast for UK property market

Fri, 17 Jun 2011 00:00:00 GMT

The UK property market is forecast to have a quiet summer, as bank lending remains subdued and the country's economic forecast is uncertain.

According to the Council of Mortgage Lenders (CML), there was a slight increase in mortgage lending in April, although this was twinned with a decline in property purchase approvals.

The firm explained that there were 40,900 loans, worth £5.9 billion, advanced for house purchase in April, up from 37,900, worth £5.5 billion, in March and down from 41,900, worth £6 billion, a year earlier.

Michael Coogan, CML director general, commented on the news, stating that overall the market continues on a stable footing and the increase in house purchase lending is a good sign that the stability will continue throughout 2011.

"The economic outlook, coupled with Bank of England subdued approvals data for April, suggests a muted summer for mortgage completions so we do not expect further increases in lending over the coming months," he added.

Short-term UK property investments 'no longer viable'

Thu, 9 Jun 2011 00:00:00 GMT

Average house prices in the UK have fallen by around 4.2 per cent over the past year, figures from Halifax have revealed.

The decrease forms part of a growing trend in which investors can no longer simply purchase a property, sit back and watch it rise in value.

As such, Peter Mindenhall, researcher at IPINGlobal.com, noted that buying a UK property without a long-term plan is no longer viable due to variations between localised markets.

"Short-term investors attempting to 'flip' property will obviously be having a tough time," he explained.

Mr Mindenhall added that although some investors with high loan-to-value mortgages will currently be fearful of experiencing negative equity, others will feel more comfortable about their situation.

"Long-term investors with low loan-to-value mortgages or that have paid cash are likely to be less concerned, [because] even if and when interest rates rise they will still have a reasonable comfort zone," he said.

UK mortgage lending increases in March

Wed, 27 Apr 2011 00:00:00 GMT

UK mortgage lending increased by 21 per cent in March, reaching £11.3 billion compared to the £9.3 billion seen in February, the Council of Mortgage Lenders (CML) has revealed.

However, despite the rise last month, the level of lending was down two per cent on March 2010.

"The housing market has emerged hesitantly from hibernation. Household finances are under a lot of pressure," said CML chief economist Bob Pannell.

"Lenders expect mortgage credit availability to improve this quarter, and this should help to underpin house purchase activity albeit at pretty low levels."

Meanwhile, the latest mortgage index from brokers John Charcol has revealed that the trend of more borrowers choosing a fixed rate to buy property in the UK has been reversed.

The firm noted that there is now virtually a 50-50 split between fixed and variable rates. It follows news that estate agents in the UK have reported a surge in demand for new property ahead of the Easter Holidays.

Fall in UK mortgage lending in January

Tue, 15 Mar 2011 00:00:00 GMT

Government spending cuts, rising inflation and cuts and extreme winter weather conditions led to a fall of 26 per cent in house purchase lending in the UK during January.

According to new data from the Council of Mortgage Lenders (CML), there were 28,500 loans for residential property purchases over the course of the month.

The organisation said that the fall will ensure that the UK real estate market remains flat, although it added that one month's data is not conclusive of the overall trend.

CML director general Michael Coogan, said that monetary pressures faced by homeowners in the country meant that the fall in lending was to be expected early in the year.

"The bad winter weather and uncertainty over interest rate rises will have exacerbated the fall in lending in January, so it would be premature to draw any firm conclusions about activity levels over the next few months," he noted.

A recent report by the Royal Institution of Chartered Surveyors revealed that a total of 40 per cent of industry professionals claim that rents have increased in the three months to January.

Property predictions 2011: Family Fortunes

Wed, 26 Jan 2011 00:00:00 GMT

The property market, like many other markets, has always generally favoured those with more collateral, equating to a two tiered system where those at the top end benefit more than those at the bottom end – and the property market in 2011 will be no different.

A UK valuation surveyor has just announced that the average loan-to-value (LTV) reached a two year peak in December - LTVs have increased by up to 14% for homes valued in excess of GBP 500K, whilst those purchasing property up to the value of GBP 125K have only seen an increase of 6%.

Mortgage lenders continue with caution when it comes to first time buyers, with the market shifting radically since the heady property days during the peak of 2007 – rather than 110% mortgages to first time and self-certified buyers, lenders require sizeable deposits and in return are offering good rates and low or non-existent lender fees.

As industry rumours suggest that interest rates will start to climb back to normal levels during the course of the next couple of years, the market looks set to become even more difficult for first time buyers, who, generally located at the bottom end of the market, face tough lending criteria, expensive rents and competitive prices. Conversely, industry experts and estate agents suggest that those with collateral in above average valued homes have remained virtually untouched by the mortgage slump.

With all sorts of cost cutting legislation due to bite in the year ahead, David Cameron has waged into the property debate with continued demands on banks and building societies to ease up on lending restrictions, in a bid to get the entire market moving again. However, with unemployment figures recorded at 2.5 million in December 2010, a New Year VAT increase and rising food and fuel prices, the availability to first time buyers may not be dictated simply by lenders, but primarily by disposable income.

This article was written and supplied by Winkworth estate agents. Specialised in selling and letting prime residential property across London and throughout the UK.

Lending to determine UK property market's future

Wed, 19 Jan 2011 00:00:00 GMT

Demand from individuals looking to buy property in the UK fell over the three months to November 2010, it has been claimed.

According to a new report from consultants Winkworth, the drop was a result of falling confidence in the sector and mortgage availability remaining tight.

Despite this, the overall number of homes for sale in the UK market remained stable and higher than the amount registered over the same period a year previous.

Commenting, Dominic Agace, chief executive officer of Winkworth, explained that lending from banks will play an important role in determining the outlook for the real estate market in 2011.

"There is much debate concerning the timing and extent of interest rate rises in 2011, but the consensus is clearly that the cycle in now bottoming out," he added.

"While this will have an impact on owners and buyers, particularly those keen to lock in fixed rate products …. It is the availability of finance which remains a key determinant of the level of activity in the housing market in 2011."

Mortgage affordability rises in the UK

Mon, 3 Jan 2011 00:00:00 GMT

Mortgage affordability for those looking to buy property in the UK has risen, new figures from Halifax have shown.

According to the organisation, affordability in the country now stands at a 12-year high, with 40 per cent of local authorities being branded as affordable for first-time buyers.

This figure represents a considerable improvement from the same statistic during the market high of 2007, where only six per cent of areas were judged to be affordable.

Halifax claims that the recent stamp duty threshold increase, which meant that only five per cent of fist-time buyers had to pay the tax, should be considered as one of the primary reasons for the rise in affordability.

Martin Ellis, housing economist at Halifax, commented: "The 'noughties' were a difficult period for many looking to get onto the property ladder.

"The substantial rise in house prices over much of the decade prevented many potential first time buyers from entering the market, however, affordability has improved significantly over the past three years."

Confidence faltering in UK property market

Thu, 7 Oct 2010 00:00:00 GMT

Investor confidence in the UK property market has fallen dramatically, with more individuals convinced that prices are set to fall.

According to research from property portal Zoopla, the number of homeowners who believe that home values are set to rise has fallen from 78 per cent ten months ago to 63 per cent now.

Added to this, almost 90 per cent of those asked in the Housing Market Sentiment survey think that it is still problematic to obtain a mortgage, those looking at UK property may be interested to learn.

"The ongoing mortgage drought has started to have a real impact on consumer confidence, with optimism about the outlook for the housing market dropping sharply," said Nicholas Leeming, commercial director of Zoopla.

"Increasing activity levels is vital for the health of the property market and the wider economy in turn. The banks must pull out all the stops to increase lending."

Meanwhile, the latest report from international property consultancy and chartered surveying firm Cluttons shows that residential property prices in central London fell for the first time in 18 months during the third quarter.

UK residential property prices 'on the up'

Fri, 1 Oct 2010 00:00:00 GMT

Residential property prices in the UK are still rising, those looking to buy property in the country may be interested to learn.

Official government figures from the Land Registry show that on average in England and Wales home values climbed by 0.3 per cent.

The news is in direct contrast to a number of indices released by lenders and agents, which claim that many regions of the UK have actually experienced a drop in prices.

On average, there was a 6.7 per cent annual increase in property values, the government figures show, although some regions, such as London, showed increases of as much as 11.4 per cent.

The figures reveal that the real estate market is fragmented, according to TUC general secretary Brendan Barber, with a divide opening up between the top and bottom end of the market.

"House sales are recovering for the well off, yet first-time buyers are still struggling to find affordable mortgages," he said.

"The government needs to steer the banks towards lending policies that meet the needs of ordinary working people struggling to find their first home or we could be storing up huge problems for the UK labour market in the future."

Economic worries for UK property market

Sat, 25 Sep 2010 00:00:00 GMT

Concerns surrounding the economy and the health of property market around London mean that a substantial increase in real estate values is "unlikely" in the near future.

This is the belief of the London Central Portfolio which predicts that growth will not return until banks introduce more flexible lending criteria.

Hugh Best, head of investment management at the company, said the prices in the buoyant London market, which have been enjoying a rapid recovery in response to the credit crunch, are also likely to level out until long-term growth trends return.

"With the government revising down their economic growth forecasts and banks resolutely holding lower loan-to-value ratios and multiples of salaries, it seems unlikely that the UK will see substantial and considerable growth," he added.

The news is likely to interest anyone looking at buying London property, with the country's market expected to remain stagnant for a while.

Property prices fell by 1.1 per cent in September, according to the latest Rightmove figures.

UK house price slump continues

Thu, 29 Jan 2009 00:00:00 GMT

The slump in the UK's residential property sector continued in January with prices falling by 1.3%, according to the latest figures published today...

UK house prices slide for 15th month

Thu, 29 Jan 2009 00:00:00 GMT

UK house prices show no signs that they have hit the bottom as the Nationwide House Price Index recorded its 15th straight monthly fall in January with prices sliding 1.3 per cent...

First time buyers often confused by mortgage jargon

Wed, 28 Jan 2009 00:00:00 GMT

Many first time property buyers are confused by industry jargon, according to a survey by one of the UK's leading mortgage lenders...

Bank mortgage approvals halved

Mon, 26 Jan 2009 00:00:00 GMT

The number of new mortgages for house buyers approved by the UK's banks fell last year by 52%...

Survey of estate agents show UK property prices down this month

Mon, 26 Jan 2009 00:00:00 GMT

Residential property prices in the UK fell by 1% in January and are now 9.4% lower than a year earlier, according to a monthly survey of estate agents published today...

Home Repossessions 'Soaring'

Thu, 22 Jan 2009 00:00:00 GMT

The number of people who lost their homes nearly doubled towards the end of last year...

UK mortgage lending fell in December

Thu, 22 Jan 2009 00:00:00 GMT

Gross mortgage lending in the UK fell in December to the lowest monthly figures since 2001, according to the latest published data...

House market could see prices rise by end of 2009

Mon, 19 Jan 2009 00:00:00 GMT

The housing market should bottom out in the coming 12 months, and by the end of the year prices could start to rise again, according to new research...

Mortgage rescue plan is extended

Fri, 16 Jan 2009 00:00:00 GMT

A scheme aimed at stopping thousands of vulnerable people losing their homes is to be extended across England...

South-east 'targeted' by home movers

Mon, 5 Jan 2009 00:00:00 GMT

London and the south-east have seen a boost in population over the past decade due to an increasing number of people moving to the areas from elsewhere in the UK, a new study from HBOS has found...

Second home owners in the eurozone releasing equity to pay off UK debts

Mon, 5 Jan 2009 00:00:00 GMT

Holiday home owners are increasingly releasing equity from their overseas property to pay off debt or buy property in the UK. As a result of the strong euro, equity in second homes in the eurozone is increased in value when changed into sterling.

Finance specialist Conti Mortgages Overseas has seen the number of people remortgaging their second home abroad triple in recent months, reports The Financial Times.

"People who have uncumbered properties are taking out the cash to pay off debts in the UK or buy property," said Conti's Simon Conn. "At the moment they are getting a ten per cent increase on what they are bringing back."

As well as the weak pound, the fact that it has become easier to obtain equity release loans for holiday homes in Europe is thought to have influenced the actions of property owners. "There are much better deals around now," said Miranda John from estate agency Savills. "The terms are pretty good and most can borrow at under five per cent."

For those not needing to pay off debts, now is a good time to buy UK property using equity released from homes abroad, John added. "The euro is so strong that when converted into sterling, people will have considerably more buying power than six months ago."

This story was brought to you by holidaylettings.co.uk, the UK's No.1 holiday home website.

House Prices: Record Fall In 2008

Fri, 2 Jan 2009 00:00:00 GMT

House prices fell by 16.2% during 2008 - the biggest drop for a calendar year on record, Halifax has said...

First direct provides 'most competitive' SVR mortgages

Fri, 2 Jan 2009 00:00:00 GMT

Customers who took out a £100,000 interest-only mortgage with First direct in 2008 paid £5,918.16, making the lender the most competitive in the standard variable rate market...

UK house sales forecast to hit record low

Mon, 22 Dec 2008 00:00:00 GMT

Less than 700,000 homes are expected to change hands next year as prices continue to fall further, equating to households moving just once every 31 years...

HBOS shareholders to vote on deal

Fri, 12 Dec 2008 00:00:00 GMT

HBOS gives a gloomy outlook as shareholders meet in Birmingham later to vote on the takeover deal with Lloyds TSB...

HBOS shareholders back takeover

Fri, 12 Dec 2008 00:00:00 GMT

HBOS shareholders approve the takeover deal with Lloyds TSB but a gloomy trading update sends its shares down 22%...

HSBC to double mortgage lending

Mon, 8 Dec 2008 00:00:00 GMT

The bank announces plans to increase loans to UK homeowners next year, bucking the trend of its rivals to continue pulling back from the shrinking mortgage market...

Banks still seeking clarity on mortgage plan

Fri, 5 Dec 2008 00:00:00 GMT

Bankers pressed the Treasury yesterday for clarity on a scheme to let homeowners facing repossession defer interest payments, amid confusion over who would be eligible, how claims will be policed and whether banks will be charged a fee...

Lloyds to keep brands post-merger

Fri, 5 Dec 2008 00:00:00 GMT

Lloyds TSB says it will keep the Halifax and Bank of Scotland brands after it completes its merger with HBOS...

Brown throws homeowners mortgage lifeline

Thu, 4 Dec 2008 00:00:00 GMT

Homeowners facing the threat of repossession were on Wednesday offered a government lifeline in the form of a £1bn scheme that will allow mortgage interest payments to be deferred for up to two years. Gerorge Parker, FT.com - 3 December 2008 Gordon Brown, speaking at the start of the debate on the Queen’s Speech, said eight of...

Mortgage squeeze expected to tighten

Wed, 3 Dec 2008 00:00:00 GMT

Lenders warn of continued 'mortgage rationing' and 'worsening picture' for next year due to a 'dysfunctional market' as demand outstripped supply last year...

Mortgage squeeze set to tighten says CML

Wed, 3 Dec 2008 00:00:00 GMT

Lenders warned last night that consumers would face continued 'mortgage rationing', with a 'worsening of the picture next year' unless the government stepped in to support the industry...

Government crisis response slammed

Wed, 3 Dec 2008 00:00:00 GMT

The Government's response to the mortgage lending crisis has been confused and ineffective critics warn, with calls for new solutions gathering pace as repossessions rise and mortgage lending figures continue to plummet...

FSA says Halifax tracker loans must fall in line

Wed, 3 Dec 2008 00:00:00 GMT

The FSA said yesterday that more than half a million Halifax customers on tracker mortgages should benefit from further interest rate cuts even though the small print on their loans supposedly prevents them from doing so...

Mortgage collars deny cut benefits

Wed, 3 Dec 2008 00:00:00 GMT

Up to a million homeowners may not see the full benefit if, as expected, the Bank of England reduces interest rates by a full percentage point tomorrow...

Bank Rate: Terms Floor Borrowers

Wed, 3 Dec 2008 00:00:00 GMT

There are fears that up to 1.2 million tracker mortgage customers could fail to see the full benefit of a widely expected cut in the base rate of interest...

Lenders' mortgage rationing claim

Tue, 2 Dec 2008 00:00:00 GMT

Mortgage rationing is set to become more severe in 2009 without government action, a lenders' group warns...

Gordon Brown pledges to lift home lending

Fri, 28 Nov 2008 00:00:00 GMT

The prime minister assures leaders of the UK housing and building sectors that the government is working on a credit guarantee scheme to kick-start the mortgage market...

House Price Falls Slowing... A Bit

Thu, 27 Nov 2008 00:00:00 GMT

The rate at which house prices are falling has eased "significantly" this month...

FSA raises deposit protection in building society mergers

Thu, 27 Nov 2008 00:00:00 GMT

LONDON (Reuters) - The FSA said it had changed its rules so as to prevent building society mergers from diluting savers' deposit protection...

US house prices drop is biggest in 40 years

Tue, 25 Nov 2008 00:00:00 GMT

The price of previously owned homes in the US fell in October by the biggest amount in at least 40 years and the volume of sales also dropped, in a sign of the still...

Extra support for those struggling to pay mortgages

Tue, 25 Nov 2008 00:00:00 GMT

Homeowners facing repossession or struggling to meet mortgage payments after losing their jobs will receive extra support from the government following yesterday's...

Mortgage approvals approach record low

Tue, 25 Nov 2008 00:00:00 GMT

LONDON (Reuters) - Mortgage approvals for house purchase more than halved in October compared with a year earlier, coming with a whisker of the record low hit in August, the British Bankers' Association said on Tuesday...

Mortgage lending feels the strain

Tue, 25 Nov 2008 00:00:00 GMT

The number of mortgages approved for house purchases in October by top UK banks fell 52% from a year ago, banks say...

HBOS forced to recapitalise Kenmore

Fri, 21 Nov 2008 00:00:00 GMT

HBOS has helped to recapitalise Kenmore Property Group, one of its major real estate partners, after a £500m joint venture breached debt covenants owing to the...

Mortgage debt forces thousands to sell up

Fri, 21 Nov 2008 00:00:00 GMT

More than one in five homes on the market are there because their owners cannot afford the mortgage repayments, The Times has learnt...

Property repossessions up by 12%

Fri, 21 Nov 2008 00:00:00 GMT

The number of properties repossessed by mortgage lenders rose by 12% to 11,300 in the third quarter of the year...

October sees mortgage lending increase

Fri, 21 Nov 2008 00:00:00 GMT

Mortgage lending rose seven per cent to £18.7 billion in October, although figures are still down compared to a year ago...

Home repossessions rise as credit crunch bites

Fri, 21 Nov 2008 00:00:00 GMT

LONDON (Reuters) - Lenders took possession of 11,300 homes in the third quarter, up from 10,100 in the second despite government efforts to make home repossessions a last resort, the Council of Mortgage lenders said on Friday...

Lloyds investors back HBOS rescue

Thu, 20 Nov 2008 00:00:00 GMT

Lloyds TSB investors have overwhelmingly backed the bank’s controversial rescue of HBOS and its plans to raise £5.5bn of capital despite some shareholders voicing concerns...