Tag Archives: political
CML reaffirms what needs to be done for UK home lending markets after election
The Council of Mortgage Lenders has reissued its election manifesto aimed at political parties ahead of the forthcoming vote in the UK in May. It highlights many of the issues for people in different tenures in today's housing market and sets out the challenges to be addressed in delivering effective housing solutions for the future. ‘The mortgage market is a £1.2 trillion industry, and housing a key electoral issue. This is our combination to the political debate. Whoever is in power after the election will have to show they can create a joined up and cohesive housing strategy for all housing tenures,’ said Paul Smee, director general of the CML. ‘The UK housing market is really a set of local markets, so there are especial challenges in delivering a focused long-term plan, but it is crucial for the wellbeing of citizens, and the growth of the economy and lenders are keen to play a positive role,’ he added. The manifesto gives a lender's perspective on what actions need to be taken to tackle the most important problems facing the market, Focusing on the needs of the old, the young, and the in-betweeners, it recommends creating a comprehensive house building plan to increase the supply of housing in all tenures. It also suggests the promotion of shared equity/shared ownership as a permanent tenure and addressing the regulatory stumbling blocks that relate to lending into retirement as well as promoting better pathways between the mainstream mortgage market, lifetime mortgages, and downsizing. The manifesto suggests work needs to be done to ensure new housing supply fully reflects the needs and aspirations of an ageing population and the need to identify any unintended consequences of regulation on credit worthy mortgage holders. It wants whoever wins the general election to work with the industry to develop a more effective safety net against the risk of change in household circumstances and make sure that policies affecting all tenures, such as welfare reform, are holistic and align with private sector markets. Continue reading
Prime central London transactions slowing but prices remain stable
The introduction of a new stamp duty propertytax structure in December, the forthcoming general election and the spectre of a mansion tax have created a level of uncertainty within the UK’s prime property market, it is claimed. New research from prime central London agency W.A.Ellis, a JLL company, shows a sharp reduction in prime central London transaction levels. The firm compared sales transactions within Knightsbridge, Chelsea, Belgravia and Kensington post code areas and found that transactions in January 2015 fell by 34% compared to a year ago. This reduction is most sharply felt within the house sector, with only nine sales occurring in January 2015, contrasting with 25 in January 2014, a reduction of 64% and the firm has seen a large number of houses being withdrawn from the market as discretionary sellers adopt a ‘wait and see’ more cautionary approach until after the election. The research also shows that while the transaction levels have dropped year on year, the average rate per foot of all the houses sold across the postcodes has remained stable at around £1,800 per foot. ‘Comparing year on year transactions within the same month only provides a snapshot, but the overriding sentiment at the upper end of the market is undoubtedly one of caution until the political path becomes clearer,’ said Richard Barber, director at W.A.Ellis. ‘At the lower end, however, we predict an increase in activity from the over 55s, releasing deposit monies from pensions to fund either buy to lets or investments for their children and we expect this to have a strong upward effect on the market between £200,000 and £1 million,’ he explained. He also explained that whilst the Mortgage Market Review (MMR) has had a curbing effect on the amounts that first time buyers can borrow, the so called bank of Mum and Dad is likely to subsidise the shortfall in mortgage funds, particularly as the market in equities and gilts is looking unpredictable. The firm’s research also shows that the prime central London lettings market saw a flourish of activity in the first week of January, followed by a steady stream of enquiries, viewings, and subsequent new tenancies. The firm forecasts that central London rents will rise 3% over the course of 2015. ‘January saw activity across the entire breadth of the market, with well-presented one and two bedroom properties letting with relative ease. Substantial houses gained much deserved attention, too, from families who have, no doubt, been hibernating over the Christmas period,’ said Lucy Morton, director and head of agency. She pointed out that demand for new build property, particularly in W2's prized Merchant Square development, is most definitely on the up, and the firm is seeing tenants’ expectations on quality of finish and furnishing increase considerably. ‘Stock levels remain high as many would be vendors with pre-election nerves opt to list their properties on the rental… Continue reading
Outlook positive for Scottish property sales and lets in 2015
The outlook for the Scottish property market is optimistic for 2015, following a successful year in 2014 with encouraging levels of activity throughout the country and a return to some competitive bidding. There was a 24% increase in the number of sales in the final quarter of 2014 compared to the third quarter. As well as the improvement in sales figures, there was also a 23% increase in the number of viewings against 2013’s figures for the final quarter, according to data from independent property consultancy CKD Galbraith. Throughout 2014, CKD Galbraith handled property in excess of £375million covering property throughout the whole of Scotland. Prices achieved for all properties sold by the firm during 2014 were, on average 1.54% over the asking price. According to the firm Edinburgh has been one of the year’s successful markets despite a slowdown due to the independence referendum vote in September 2014. In the fourth quarter of the year property sales and registration figures in Edinburgh continued to grow on the previous quarter’s figures according to new research conducted by the firm’s office in the capital city. Overall the number of properties sold through CKD Galbraith increased by 50% from the third to fourth quarter and the number of interested buyers registering with the firm rose by 51% compared to the last quarter as well. Average house prices in Edinburgh have also seen a significant increase rising from £253,000 in the third quarter to £340,000 in the final three months of 2014. The research also shows that 34% of buyers were local, 50% were national and 16% were international buyers ‘The fourth quarter saw a return to high sale numbers and a desire to get transactions finalised before the 01 April when the changes to stamp duty occur. The Edinburgh market has also seen a return of buyers from down south and abroad since the uncertainty of September’s referendum disappeared,’ said Jennifer Campbell of CKD Galbraith’s Edinburgh office. ‘Demand continues to outstrip supply across Edinburgh. The south side also remains extremely popular for its proximity to good schools. We expect sales figures to keep increasing throughout the first quarter of 2015 and not to show signs of slowing down until the general elections in May,’ she added. In the Aberdeen office there was a 33% rise in sales compared to the third quarter of 2014 and the supply of high quality properties in the region has risen by 23% compared to the last quarter. Also, the number of viewings has increased by 15% in the last quarter compared to quarter three. 'Property prices continued to rise in the region and buyers were serious about purchasing accurately priced homes. Although we envisage a plateauing in prices over the next year we do expect interest and offers to keep increasing as the city and surrounding areas grow in popularity,' said Jordan MacKay, head of residential for… Continue reading
