Tag Archives: economy
Over half wanting to move home in the UK can’t see it happening this year
Over 50% of people in Britain ay they are considering a house move but most can’t see themselves being in a position to do so in the next 12 months, according to new research The survey by home insurance company Gocompare also found that those hoping to move have been waiting 3.6 years on average and 21% are worried that they may never afford to buy a house or move. It is the costs associated with buying and moving home, together with high house prices, which are cited as the main barriers to moving. Overall, the biggest obstacles to the nation’s housing hopes are the cost of buying and moving with 16% concerned, followed by 16% concerned about high house prices in the area they want to buy and 15% worried about the cost of running a house. Also, 14% raised concerns about saving a deposit, 10% about job security or income and 9% said they perceive there is a lack of availability of the type of house they want to buy and this is putting them off. Of those considering a move or buying a house some 15% think that they are unlikely to get moving with their house plans within the next five years. Most, 77%, are aged 25 to 34 years. Just under a quarter, 24%, of this age group say that getting a deposit together is the main thing holding them back. The research shows that 28% of 18 to 24 year olds and 28% of 25 to 34 are the most worried that they will never be able to afford to buy a house or move. A quarter of 35 to 44 year olds also fear that they will never be able to buy or move home. Some 39% of 55 to 64 year olds and a quarter of those aged 65 or over are considering moving. In addition to the costs involved with buying and selling a house, a key factor preventing these people from moving is a lack of availability of the type of housing they want to buy. Of the regions, London has the most residents considering a house move at 62%, followed by the South East at 57% and the North West at 51%. People living in the North East have been waiting, thinking about, or wanting to move the longest, with an average waiting period of 4.3 years, closely followed by those living in the North West it is 4.2 years and in the South West it is four years. Londoners top the list of those who say they are likely to get moving in the next 12 months at 44%, followed by people living in Yorkshire and The Humber at 42% and Scotland at 40%. ‘Low interest rates and improved confidence in the economy are creating potentially ideal conditions for the housing market,’ said Ben Wilson from Gocompare. ‘However, our survey suggests the high costs associated with buying and moving home, together with the requirement to put down… Continue reading
Lending for homes in UK up 43% compared to a year ago, latest figures show
Gross mortgage lending in the UK was £15.2 billion in February, down some 6% compared with January but still 43% higher than the £10.6 billion lent in February last year, the latest data from the Council of Mortgage Lenders shows. The CML also pointed out that it is the highest total for a February since 2008. CML chief economist Bob Pannell said that housing market indicators have continued to be strong over recent months, once seasonal factors have been taken into account. ‘First time buyers have benefitted most from the government’s Help to Buy initiatives, with the more recent mortgage guarantee scheme now starting to push typical loan to value levels higher,’ he explained. ‘The housing market got a further boost from this week’s Budget. This, together with benign developments in the economy more widely, should bolster short term sentiment and activity,’ he added. Experts believe that more new homes are needed to help the property market continue its recovery as lack of supply is holding it back. Duncan Kreeger, director of West One Loans, a privately funded short term lender, comments, believes that the market can only go so far without a sustainable supply of new homes. ‘While mortgages might be catching up with pre-recession levels, house building in the UK still falls considerably below these peaks,’ he said but added that building may have got a boost in yesterday’s Budget. ‘However, there are still many questions left unanswered. Some 200,000 new homes looks good on paper but we still don’t know where these will be placed. It’s all very well to build a garden city in Ebbsfleet, but if demand is greatest in urban areas, it’s unclear how this will help,’ he explained. ‘The hard truth is that to really increase the supply of homes where they are most needed requires complex property conversions and refurbishments and it’s still almost impossible to get mainstream funding for these types of projects,’ he added. According to Ian McGrail, managing director, FirstMortgage, the data supports the level of growth that his firm as seen at a company level year on year, as demand for mortgages from first time buyers and home movers remains consistently strong. ‘The results, showing the highest total for a February since 2008, pair well with our in house monthly figures, where similarly we have seen record levels of production. This growth looks set to continue steadily into the year, although we would expect activity to slow down temporarily at the end of April when the Mortgage Market Review comes into effect, as lenders get to grips with the reality of the reforms imposed,’ he added. However, Peter Williams, executive director of the Intermediary Mortgage Lenders Association (IMLA), warned that growth could slow this year partly because regulatory changes on 26 April will act as a temporary buffer and also because the bar was significantly raised in the second half of last year. 'But the recovery is well underway and should continue to… Continue reading
Independence debate having no effect on improving Scottish property market
Scottish house prices have so far shown no negative response to the independence debate with prices up 1.1% in January, the largest monthly increase for over four years. Average prices are also up 3.9% year on year, the largest annual increase since September 2010, according to data from the latest LSL/Acadata Scotland House Price Index. It takes the average house price to £160,270. ‘The enthusiasm of property investors suggests the independence debate is having no impact on confidence within the Scottish housing market. Scottish prices were up £1,680 in January,’ said Donald MacLellan, chairman of Walker Fraser Steele Chartered Surveyors, part of LSL Property Services. He pointed out that five consecutive months of rising prices indicate the market has bounced back fast as it gathers the fruits of the wider economic recovery. ‘Whether the possibility of Scottish independence throws up all sorts of question marks such as the economic cost of a separate monetary system for Scotland, currency risks, changes to stamp duty and land tax, the property market seems currently unaffected,’ he explained. ‘And whether some businesses are alarmed by the prospect of the use of a currency other than sterling, a development that might lead to a rise in transitional risks, large business costs, with corresponding implications for jobs, as of yet there is little obvious impact,’ he said. ‘Banks such as RBS and Standard Life have threatened to leave Scotland altogether and decamp to England, possibly causing a drop in net lending. But if a yes vote for independence looked like the more probable outcome, we would expect this uncertainty to have manifested itself in property prices. As we can see, there has been no such impact on the housing market,’ he added. The LDL data also shows that 2014 recorded the highest volume of sales in a January since 2008. ‘Increased lending and mortgage availability are reaching heights not seen since before the recession as first time buyers return to the market en masse. Mortgage finance, for those who can access it, is at its cheapest for some time,’ said MacLellan. ‘This is sustaining activity in all sections of the market, specifically buy to let investors and homeowners looking to upgrade. The spring market in Scotland will see more lending to first time buyers thanks to cheaper rates, a boost in high loan to value mortgages and the support of Help to Buy,’ he added. He also pointed out that the lack of supply in properties in Scotland is boosting competition between new and previous buyers, propping up prices, adding that the property market doesn’t appear to think things are set to change any time soon. Interest in Scottish rural estates remains relatively healthy despite the independence referendum and the possibility of new land reform legislation, it is claimed. When it comes to the more specialist sector of the property market, real estate experts believe their could be an impact in the run up to the vote in September but it is likely to be short lived. For… Continue reading
