Tag Archives: homes
First time buyer lending in UK up by 25% in June compared to a year ago
There was a growth in the home lending market in the UK in June with the first time buyer market seeing a particular boost in activity, according to the latest figures from the Council of Mortgage Lenders (CML). Home owners borrowed £12.3 billion, up 29% month on month and 12% year on year. They took out 68,200 loans, up 26% on May and 8% on June 2015. First time buyers borrowed £5.5 billion, up 28% on May and 25% on June last year. This equated to 34,300 loans, up 24% month on month and 17% year on year. Home movers borrowed £6.9 billion, up 33% on May and up 5% compared to a year ago. This represented 33,900 loans, up 28% month on month and up 0.3% on June 2015. Remortgage activity totalled £5.6 billion, up 8% on May and 6% compared to a year ago. This came to 32,400 loans, up 4% month on month but down 2% compared to a year ago. Landlords borrowed £2.9 billion, up 12% month on month but down 15% year on year. This came to 18,300 loans in total, up 8% compared to May and 17% compared to June 2015. On an unadjusted basis in the second quarter of the year home owners borrowed £30 billion, down 2% quarter on quarter and 7% year on year. They took out 169,600 loans, up 4% on the first quarter and 3% on the same quarter in 2015. First time buyers borrowed £13.7 billion, up 23% on the first quarter of the year and up 21% on the same quarter in 2015. This equated to 87,100 loans, up 23% month on month and 14% year on year. Home movers borrowed £16.4 billion, down 16% on first quarter and 2% compared to a year ago. This represented 82,600 loans, down 10% quarter on quarter and 6% on the second quarter 2015. Remortgage activity totalled £16.9 billion, up 10% on the first quarter and 25% compared to a year ago. This came to 98,700 loans, up 10% quarter on quarter and 17% compared to a year ago. Landlords borrowed £8 billion, down 46% compared to the first quarter of the year and down 9% year on year. This came to 51,600 loans in total, a drop of 45% compared to the first quarter and down 11% year on year compared to the second quarter of 2015. The CML now publishes seasonally adjusted monthly and quarterly data (see attached), alongside the normal unadjusted data. Paul Smee, CML director general said that this makes it easier to spot underlying trends. ‘These figures reveal growth in house purchase activity and in particular for first- time buyers. As ever, there is uncertainty and it will take more time and patience to understand how the market will evolve in the current environment as these figures predominantly cover activity in the run up to the referendum,’ he explained. ‘We still believe that the mortgage market is well capitalised, resilient… Continue reading
Millions of UK home owners fail to get a survey on their property
Over seven million UK home owners have taken a serious financial risk by choosing not to have a survey completed on their current property, new research has found. Some 13 million home owners have needed unexpected building work completed on their property since moving in and 56% of those who had major building work said knowing this in advance would have influenced their decision to buy the property. Surveyors say the top three problems with properties which can be detected by a building survey are damp, roof issues and subsidence, according to the research rom Churchill Home Insurance. But millions choose not to do so and this includes 3.5 million who did not have any type of independent checks completed and 3.6 million who assumed a mortgage valuation was sufficient. With the price of property stretching many home owners’ budgets, it appears people are scaling back on the level of surveys completed on their property pre-purchase and choosing to go down the cheapest route. The number of people having at least a base level survey has increased over time, from 63% 20 years ago to 91% in the last 12 months. The number of home owners, however, having the comprehensive building survey has reduced significantly from 28% 20 years ago to just 6% in the last 12 months. The research also found that 36% of UK surveyors have seen a change in the trend for people requesting surveys in recent years, the main one being an increase in the number of surveys requested compared to previous years. Some surveyors said buyers look for the cheapest survey as they want to save money throughout the property purchase. ‘It’s encouraging to see the number of people having a survey has increased over time. Only by having a qualified surveyor assess a property are prospective buyers fully informed of the true state of that property, so it is an essential part of the buying process,’ said Martin Scott, head of Churchill home insurance. ‘Those relying on a mortgage valuation alone should be wary as this is just a cursory look at a property from a mortgage lender to assess how much it is worth, not a survey looking at the state of the property,’ he added. The research also reveals that 23% of surveyors have had clients who needed expensive building works doing to their property soon after moving in, which would have come up in a more comprehensive survey. Indeed, one home owner had a Home Buyers report that missed the full extent of subsidence affecting the property while others needed roof repairs, had problems with dry rot, damp or heating issues, all of which would have come up in a full building survey. Overall 42% of UK home owners have needed unexpected works doing to their property within 12 months of moving in, some 9% needed major works completed, while 15% needed moderate remedial work. Demonstrating that scrimping on a thorough survey can be a… Continue reading
Home Counties prime property rents down month on month and year on year
Prime rents across the English Home Counties, locations that are popular with people who commute to work in London, fell by 0.6% between April and June, according to the latest index. The Knight Frank rental index also shows that on an annual basis rents were 0.8% lower than a year previously and adds that the fall in quarterly and annual rental growth has been driven by higher stock levels and a desire from landlords to remain competitive and keep void periods to a minimum in what is increasingly a tenant’s market. However, the index report points out that underlying demand for rental property remains strong, with the number of new prospective tenants registering in the second quarter some 6% higher than the same period in 2015 and the number of viewings up by 12% year on year. The data also shows that the number of new tenancies agreed between April and June was almost identical to the same period in 2015 and 28% higher than in 2014. However, despite robust activity levels, agents note that any upwards pressure on rents has been countered by rising stock, especially at the top end of the market. ‘In the wake of the European Union referendum, there is already anecdotal evidence that some vendors are deciding to let their property until more clarity emerges, and this could further weigh on rental values in the medium term,’ said Knight Frank associate Oliver Knight. The index reveals that the market continued to attract international tenants in the second quarter. Indeed, some 38% of new renters across the prime Home Counties market were non-UK nationals between April and June in Ascot, Cobham and Esher, where corporate tenancies tend to be more prevalent this rose to 47%, although some of these tenants will already be domiciled in the UK. Individuals from North America were the most active movers during this time, with the start of the American school term in August likely to have been a factor, the report explains. Corporate enquiries were more than double the level in June and 19% higher than in February, the second busiest month of the year to date. Executives being relocated by their companies for work, both from London and internationally, have historically formed a large part of demand within the Home Counties lettings market. ‘As such, any rise in economic and business uncertainty as a result of the vote to leave the EU has the potential to weigh on demand for rental property as companies take stock of the new environment or look to make budget cuts,’ Oliver explained. ‘However, while our figures show a notable slowdown in the number of enquiries from relocation agents in the immediate run-up to the referendum, the number of enquiries in July was at the highest level all year, suggesting a degree of pent-up demand in spite of the UK’s vote to leave the EU,’ he added. The report also points out that the prime rental market in… Continue reading
