Tag Archives: middle-east
Remortgaging in UK reached eight year high in July
Monthly gross remortgage lending in the UK was at its highest level for almost eight years in July, reaching £7.1 billion, according to the latest data to be published. Conditions for remortgaging were boosted by the decision in June to leave the European Union, says the accompanying report from outsourced property services provider LMS. This monthly figure for July is up by 27% from £5.6 billion in June and is the largest amount since October 2008 and 42% higher than July last year when £5 billion of loans were made. The number of remortgage loans also increased by 27% from 32,400 in June to 41,157 in July, the most since January 2009. The July total was up by 36% year on year. Rising house prices, declining swap rates and speculation about an imminent base rate change at the Bank of England have all contributed to a favourable outlook for the remortgage market, the report says. LMS data also shows that home owners are remortgaging more frequently and keen to capitalise on the competitive rates currently available. The term of the average loan that was remortgaged fell by 15% or nine months from five years in June to four years and three months in July, the lowest since October 2009. This was also 18% or 11 months lower than the average for July 2015. As the average remortgage loan size increased to £172,184 in July, up 9% from £157,557 in June, the average LTV also increased from 54% in June to 58% in July. LMS data suggests that more home owners are remortgaging to fund home improvements and pay off debt and this is a sign of consumer confidence, despite widespread speculation about the effects of the UK’s vote to leave the EU. The surge in remortgaging meant the total amount of housing equity withdrawn via this route in July rose 27% from £951.8 million to £1.2 billion. This was the greatest amount for more than eight years, since £1.4 billion was withdrawn in April 2008. ‘The aftermath of the UK’s vote to leave the EU has not overshadowed an environment that is ripe for remortgaging as product rates plummeted to new lows. Home owners have been quick to capitalise on this and there’s little sign that incentives to remortgage will disappear any time soon,’ said Andy Knee, chief executive of LMS. ‘People who remortgaged in July did so more frequently than they have for more than six years, no doubt to take advantage of low rates in many cases and reduce their outgoings. Feedback suggests almost two thirds remortgaged in July to take advantage of competitive rates, highlighting that significant savings are ripe for the taking,’ he explained. ‘Although there is little for home owners to fear in terms of a base rate rise over coming months, many could seek stability by remortgaging and fixing now, and we expect… Continue reading
Conveyancing activity in UK saw ups and downs in second quarter of 2016
Conveyancing activity in the UK residential housing market increased in the second quarter of 2016 with changes to stamp duty pushing up transactions by 24% year on year, the latest data shows. Sales jumped from 230,430 to 286,425 as completions were registered following the rush to beat the Stamp Duty Land Tax (SDLT) changes for buy to let properties and second homes in April 2016, according to the latest edition of the Conveyancing Market Tracker from Search Acumen, the search provider. Completions recorded in the second quarter of 2016 were some 30% higher than two years ago and 59% higher than three years previously and compared with the first quarter of 2016 the three months preceding the SDLT reform there was a rise of 4% as conveyancers dealt with the reverberations across the housing market and the rush of transactions were logged as completed by Land Registry. The tracker report, which uses Land Registry data to examine competitive pressures in the conveyancing market, shows the top five firms led the way in terms of growth compared to the rest of the market, with completed activity rising 17% over the quarter and 41% over the year to reach an average of 3,523 transactions per firm over the three month period. However, outside the top five, the most significant quarterly growth was seen among those firms ranked 501 or lower. In the second quarter their average volume of transactions rose by 5% from the previous quarter. Year on year, those firms ranked 501 to 1,000 experienced 23% growth while those outside the top 1,000 recorded 19% growth. A combination of the SDLT aftershock and pre-Brexit activity meant that conveyancers experienced a rollercoaster ride from month to month during the second quarter. April saw the largest number of businesses responsible for completed transactions at Land Registry in any month since September 2014. The total of 4,374 was 4% higher than a year earlier, when 4,201 firms were active, and suggests the stamp duty rush brought more occasional players back to the market. Volumes of completed conveyancing transactions were also at their highest in April since monthly records began five years earlier in April 2011. Over the month, activity jumped 26% to 114,425 in April from 90,476 in March. Despite an inevitable slowdown the following month, both May and June also saw year on year rises of 14% with firms completing 81,583 and 90,477 transactions respectively, as activity picked up again despite the uncertainty ahead of the UK’s referendum on its EU membership. ‘Few sectors have been left untouched by the tumultuous events of the past few months, and the impact of the EU referendum on the political and economic landscape. Our analysis shows the conveyancing industry has been tried and tested in recent months, and the pressure shows no sign of easing as our country begins to work out what… Continue reading
Demand for rental properties in UK down slightly in July but no marked Brexit effect
The number of rental properties on letting agents’ books in the UK is at its highest level this year so far as demand for properties fell marginally in July, according to the latest research. But the private rental sector market is in positive shape following the decision in June to leave the European Union with the majority of agents reporting no change to rent prices. The July rental sector report from the Association of Residential Letting Agents (ARLA) shows that there were 184 rental properties on agents’ books, up 5% from the previous month. However, year on year supply is down as there were 189 properties per agent in July 2015, some 3% higher than July this year. Demand from prospective tenants for rental accommodation fell slightly, from 37 house hunters per branch in June, to 36 in July. Following the Brexit vote some 71% of agents witnessed no change in rents and 62% saw no movement in supply while 61% recorded no change in demand. As in June, last month 38% of letting agents saw no sign of a market wobble following Brexit. Where there is uncertainty though, it comes from those looking to let properties, with 44% of agents reporting signs of uncertainty from landlords ‘Despite reports that the housing market is spiralling out of control post-Brexit, our results paint a very different picture, and indicate that the future is bright for the rental market,’ said David Cox, ARLA managing director. ‘Supply is up, as we’d expect at this time of year, and the number of tenants experiencing rent hikes hasn’t changed in three months. While we obviously need new houses to balance the growing gap between supply and demand, what’s positive is that the situation isn’t worsening as a direct result of June’s Brexit result,’ he added. Continue reading
