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Prime house price five-year forecast revised

Savills has released a revised five-year forecast for the UK’s prime housing markets, reflecting strong levels of activity in prime central London and prime regional markets, but also a backdrop of international and domestic uncertainty.

While the shape of recovery remains broadly as previously forecast in November 2021, the long-awaited bounce in values in prime central London has been pushed out to 2023. The firm expects prime central London’s house prices to grow 4% across 2022 (down from 8% previously forecast in November 2021). This reflects a slower pace of return of international buyers than anticipated, as well as the war on Ukraine and current domestic political instability which have caused a degree of caution that is constraining price growth.

Savills expects a more significant recovery in 2023, and has forecast growth of 7% (up from 4%), with the pace of demand from overseas expected to increase.

Over the next five-years, prices in prime central London are expected to rise by a total of 21.6%, despite a slight slowing of growth in the run-up to the expected general election in 2024.

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“Strong activity over the past six months, the relative value on offer and the prospects for global wealth generation together give us confidence that prime central London will continue to recover steadily over the next couple of years,” comments Frances McDonald, research analyst at Savills.

“However, the pace of return of international buyers has so far been slow, holding back the more rapid recovery we had previously anticipated. Early indicators suggest that things should improve over the second half of the year and into 2023, as high-net-worth buyers have gradually started to return to traditional prime postcodes such as Chelsea, Belgravia, Kensington, Mayfair, Notting Hill and Holland Park over the past three-months, boosting the outlook for price growth beyond this year.”

“In the longer term, requirements to register beneficial ownership of homes held in offshore vehicles have the potential to curb some demand amongst a limited number of buyers in the longer term. But, while historically there have been many benefits to using offshore vehicles to hold UK property, the tax advantages have largely already been removed. As such, we have only slightly reduced our outlook for prices over the next five years,” continues McDonald

In the more domestic markets of outer prime London, continued unmet demand from those looking to upsize and a lack of suitable stock will support price growth in the short term. Savills has forecast that price growth in these markets will average +5% in 2022.

But while the prime markets (broadly the top 5%-10% by value) are generally more resilient to interest rate rises and the increased cost of debt, they are not completely immune. Savills expects to see signs of price sensitivity creep into the market over the next six months, resulting in slower growth from 2023 onwards. This is expected to cap price growth at 13.6% over the five years to the end of 2026.

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“Over the medium term, the return of workers to the capital will fuel demand. Even as hybrid working becomes more conventional, workers still value proximity to the office and some of those who bought a home in the country during the pandemic are realising the need for a pied-à-terre, further supporting demand for flats,” continues McDonald.

“From 2023 onwards we are forecasting slightly lower levels of price growth with rising pressure on buyers’ spending power, though the effect of earlier than expected interest rate rises is likely to be offset by an easing in mortgage regulation and an increased flow of capital coming out of central London.”

Scotland, the Midlands and the North expected to perform the strongest in the long term

Following two years of unprecedented price growth (+16% since March 2020), the pace of growth in the prime regional markets has started to slow. However, activity continues to be strong and there remains an imbalance between supply and demand across much of the market, which will support price growth in the immediate future.

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Savills forecasts that prime regional markets will grow by an average of 5% in 2022, led by growth in London’s suburbs (6%), with prices growing more steadily thereafter (18.8% over the five years to the end of 2026).

“Growth in the medium term will depend largely on further interest rate rises and the rising cost of living which will limit buyers’ spending power. This will have the most significant impact on markets where buyers typically take on more debt.

“As a result, we are likely to see a continued slowing of growth towards the end of this year, and whilst we are not expecting a significant correction in price levels, realistic pricing from vendors will once more become all-important. This will be particularly true for markets which have seen the strongest growth since the start of the pandemic, namely London’s suburbs and the coastal and rural markets in the south of England which performed phenomenally over the course of the pandemic,” concludes Savills’ Frances McDonald.

Longer term, the prime markets of Scotland, the Midlands and the North of England are expected to perform the strongest, due to greater capacity for growth (compared with those in the South). Savills has forecast 21.7% and 22.8% total growth over the next five years.

By MARC DA SILVA

Source: Property Industry Eye

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Asking prices for homes fall in line with seasonal norms

The average price of property coming to market in the UK has dropped for the first time this year, according to fresh industry data released on Monday, albeit at seasonally-normal rate.

Property marketing platform Rightmove said its house price index showed asking prices falling 1.3% this month, or £4,795, to £365,173.

It said prices traditionally fall in August, with the drop “on par” with the average of 1.3% over the last 10 years.

Rightmove said the summer school holidays saw “distracted” house-movers, especially those in higher-priced homes, put their plans on hold until the autumn moving season.

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Some of the more urgent sellers coming to market were pricing more competitively, it added, in order to capture the attention of suitable buyers quickly and attempt to beat the average time of 136 days to complete a sale and move before Christmas.

“A drop in asking prices is to be expected this month, as the market returns towards normal seasonal patterns after a frenzied two years, and many would-be home movers become distracted by the summer holidays,” said Rightmove’s director of property science Tim Bannister.

“Indeed, for those that can, this may be their first summer holiday abroad since before the pandemic.

“Sellers who want or need to move quickly at this time of year tend to price competitively in order to find a suitable buyer fast, with some hoping to complete their move in time to enjoy Christmas in a new home.”

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Bannister said to achieve that this year, they would need to beat the current average time between accepting an offer and completing the sale of four-and-a-half months.

“Nevertheless, we’re still expecting price changes for the rest of the year to continue to follow the usual seasonal pattern, which means we’ll end the year at around 7% annual growth, even with the wider economic uncertainty.”

Rightmove said the recent sixth consecutive interest rate rise from the Bank of England, by 0.5% to 1.75%, would be in the minds of many would-be movers, and when combines with the rising cost-of-living would lead to reconsiderations of what they could afford to borrow and repay each month.

It said that at the moment, the mismatch between supply and demand was still the biggest factor influencing asking prices outside of seasonal trends.

Although demand was still softening and supply constraints were improving, there was still a “massive imbalance”.

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Buyer demand this month was down 4% on the “frenzied market” of 2021, but was still 20% higher than in 2019.

The number of new listings coming to market was up 12% on the same period last year, though it was 6% down on 2019, while available homes for sale were down 39% on 2019.

Buyer enquiries to agents did not appear to have been “particularly dented” by the most recent interest rate rise, suggesting that many buyers were still committed to moving, and incorporating rate rises into their financial planning.

“Several indicators point to activity in the market continuing to cool from the lofty heights of the last two years,” Tim Bannister added.

“It’s likely that the impact of interest rate rises will gradually filter through during the rest of the year, but right now the data shows that they are not having a significant impact on the number of people wanting to move.

“Demand has eased a degree and there is now more choice for buyers, but the two remain at odds and the size of this imbalance will prevent major price falls this year.”

By Josh White

Source: ShareCast

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First-time buyer misery as house prices refuse to come down despite buyer interest slowing

House prices continue to move firmly upwards and are still expected to be higher in a year’s time, according to the Royal Institution of Chartered Surveyors (RICS) this afternoon.

The numbers are somewhat surprising given that surveyors have seen the longest stretch of shrinking buyer demand in the housing market since the early stages of the coronavirus pandemic.

A net balance of 25 per cent of property professionals reported new buyer inquiries falling rather than rising in July, marking the third month in a row of an overall decline.

The RICS report said: “As such, this marks the third successive report in which this indicator has been in negative territory, thereby representing the longest stretch of falling demand seen since the early stages of the pandemic.”

The previous stretch of falling demand took place in March, April and May 2020.

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Dip in buyer demand
A dip in new buyer inquiries was seen across the UK generally over the latest survey period.

Expectations among property professionals for sales in the next 12 months were the most downbeat since March 2020 – the month that the UK coronavirus lockdowns started.

Higher interest rates and the cost-of-living crisis were cited by contributors to be causing the drop in market activity.

The latest survey was carried out before the most recent Bank of England rate hike last week, which was the biggest single rate jump since 1995, which according to calculations by UK Finance adds around £50 per month onto the cost of the average tracker mortgage outstanding.

A lack of stock, however, is continuing to put an upward pressure on house prices.

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A net balance of 63 per cent of surveyors reported an increase in house prices during July rather than a decline, and while this is more moderate than a recent high of 78 per cent in April, it is comfortably above the long-term average and indicates a firmly upward trend, RICS said.

Looking further ahead, while price expectations for the 12 months ahead have eased, the latest survey findings still indicate that house prices will be higher in a year’s time than they are now,

In the lettings market, meanwhile, tenant demand continues to rise, with a net balance of 36 per cent of property professionals reporting an increase.

With new landlord instructions declining, rents are expected to rise sharply over the near-term, with all parts of the UK anticipated to see a further pick-up, RICS said.

Tarrant Parsons, senior economist at RICS, said: “Amid a backdrop of sharply rising living costs, slowing economic growth and higher interest rates, it is little surprise that housing market activity is now losing some momentum.

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“With monetary policy set to be tightened further over the coming months, sales expectations point to a further softening in transaction volumes going forward.

“Although house price growth is likely to continue to ease, respondents still anticipate prices will be modestly higher than current levels in a year’s time.”

Tom Bill, head of UK residential research at estate agent Knight Frank, said: “Supply is so low because many people have taken a summer holiday for the first time in two years.

“Autumn will provide the acid test for the property market and we expect annual price growth to slow to single digits as supply picks up and demand cools.”

By MICHIEL WILLEMS

Source: City A.M.

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New buyer enquiries fall for longest period since pandemic: Rics

New buyer enquiries fell for the third month in a row in July, according to the latest Royal Institution of Chartered Surveyors (Rics) report, as the cost of living crisis competes with low supply in the housing market.

A net balance of -25% of survey participants reported falling new enquiries last month compared to -27 in June, “which is the longest stretch of falling demand from buyers since the early stages of the pandemic, and is evident across all of the UK”, says the body’s July RICS Residential Market Survey.

It adds that agreed sales also edged down, with the latest net balance remaining modestly negative at -13%, compared to a reading of -14% previously.

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The survey says: “Higher interest rates and the cost of living crisis are cited by contributors to be causing the drop in market activity, although it’s important to note that the survey sample was mostly gathered before the Bank of England’s latest 50 basis point rate hike.”

But it adds that “a lack of supply remains a crucial factor in underpinning continued growth in house prices”.

Looking ahead, the report says sales expectations over the next three months slipped to -20% in July, compared to -11% in the prior month. Over 12 months, the sales expectations net balance fell to -36% among respondents, down from -21% last time, which is “the most downbeat figure returned since March 2020”.

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In the rental market, tenant demand continues to rise, with a net balance of +36% of respondents reporting an increase. However, a net balance of -8% of participants noted a decline in new landlord instructions. The report says rents are expected to continue to rise sharply over the near-term by a net balance of +57%, with all parts of the UK anticipated to see a further pick-up.

The report comes amid growing concerns about the cost of living crisis, which last week saw the Bank of England hike interest rates by 50 basis points, lifting interest rates to 1.75%, the highest rise in 27 years. Inflation stood at 9.4% in June, a fresh 40-year high.

Earlier this month, UK house price annual growth eased to 11.8% in July making the average price of a home £293,221, according to the latest Halifax house price index, while transaction prices slipped for the first time in 13 months.

Rics senior economist Tarrant Parsons says: “Amid a backdrop of sharply rising living costs, slowing economic growth and higher interest rates, it is little surprise that housing market activity is now losing some momentum.

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“With monetary policy set to be tightened further over the coming months, sales expectations point to a further softening in transaction volumes going forward.

“Nevertheless, with respect to house prices, limited supply available is still seen as a crucial factor underpinning the market. Although house price growth is likely to continue to ease, respondents still anticipate prices will be modestly higher than current levels in a year’s time.”

Hargreaves Lansdown senior personal finance analyst Sarah Coles adds: “Bidding wars are increasingly giving way to more cheeky offers, particularly on pricier properties. Half of agents say that properties under £500,000 are no longer selling for more than the asking price, while those priced at more than £1m are being forced to accept lower offers. It’s another sign that the property market is starting to turn.

“Sales are also falling, and agents expect them to keep dropping in the coming months. Meanwhile, after such a long time of ever-increasing buyer numbers, we’ve seen a second month where fewer buyers are on the hunt for a home. House prices are still rising, because buyers still vastly outstrip sellers, but they’re starting to ease a little.

“Plenty of agents are feeling the impact of less demand. Others are highlighting that even when people decide to buy, life continues to get harder, so more sales are falling through as they worry about job security and rising prices. Some agents say that agreed prices are being renegotiated.

“However, it’s still a very mixed picture, and some agents say it’s as busy as it has ever been, and some buyers are in a hurry to snap up a property before mortgages get even more expensive.

“The rental market remains horrible. The number of tenants is up again, including would-be first-time buyers who are worried about the cost of living, and have decided to rent again instead.

“Meanwhile, the number of landlords has dropped for the third month in a row. Some are warning that legislative changes are driving more landlords out of the market, so with nobody filling the gap, shortages are getting even worse. It means that agents aren’t expecting any let-up in rising rents.”

By Roger Baird

Source: Mortgage Finance Gazette

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How will the housing market respond to latest interest rate hike?

The Bank of England warned last week that Britain will fall into recession later this year as it raised interest rates by the most in 27 years, but what impact will this have on the UK housing market?

The Bank of England’s decision to hike interest rates again from 1.25% to 1.75% will increase pressure on households already struggling with the cost of living, as it makes mortgages and loans more expensive, and this will almost certainly dampen sentiment in the housing market, according to Tom Bill, head of UK residential research at Knight Frank.

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However, Bill questions the Bank’s latest forecasts and believes that the direction of travel for mortgage costs is less open to debate.

“Irrespective of its accuracy, the risk for the housing market is that the prediction itself could dampen sentiment,” he said.

Bill highlights that the Office for Budget Responsibility (OBR) is the body created specifically to provide economic forecasts, and not the Bank of England.

He commented: “The Bank of England itself said uncertainty around the outlook is exceptionally high, and the UK’s economic performance could be very different depending on the trajectory of energy prices. Any further stimulus measures by the new government after September have also understandably not been included in the assumptions.

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“In short, the Bank’s latest predictions will undoubtedly cause some hesitation in the housing market but the extent to which its prophecies come true will be the real acid test.”

For anyone wondering what the latest rise means for mortgage costs, the answer is less open to debate than the Bank’s forecasts, in Bill’s view.

Bill points out that that the average cost of a five-year fixed-rate mortgage has already risen sharply in recent months, and it would appear the only way is up after 13 years of ultra-low borrowing costs.

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He added: “Further increases will dampen demand but there is unlikely to be a cliff-edge moment for the housing market. Mortgage offers typically last for six months and most people are on fixed-rate deals still, which means the impact on demand will be more gradual.

“For the second time in three months, it is worth remembering that watching what the Bank of England does rather than what it says could prove to be more useful for buyers and sellers.”

By MARC DA SILVA

Source: Property Industry Eye

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I could have fixed my mortgage rate for years longer. I’m a fool

I have been having flashbacks. Not the kind I used to have, of when I went hiking in Yosemite National Park without a map and ended up sliding down a bear-infested trail on my backside in the dark. No, these flashbacks relate to a time in my more recent life, and an ill-fated conversation with my mortgage broker in July last year that led to a severe financial misjudgment.

My wife and I had just sold our house while juggling careers and three small children, and it was time to choose a mortgage for the new one. Should we take a two-year fixed-rate deal or a five-year one?

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The five-year mortgage was with Santander, and the two-year with the West Brom building society. Both had interest rates of just over 1.2 per cent, and our broker pushed for the two-year deal. The Bank of England base rate was 0.1 per cent, and he said he would be stunned if the base rate or mortgage prices went up significantly by summer 2023, when we’d be due to renew. Plus (and after this week’s 0.5 percentage point rate rise, this is makes me squirm the most) he reckoned being stuck with a five-year deal and its hefty early repayment charge was the riskier option.

The clincher was that the West Brom would lend us £40,000 more than Santander would because it had a more relaxed affordability calculation, and we wanted that money — the place needed some work. It was an interest-only mortgage, which appealed because the repayments would be low while my wife was temporarily out of work. The two-year deal it was.

Fast forward a year and . . . yes, I know, I’m an idiot.

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Since we took out our mortgage the base rate has risen six times, now sitting at 1.75 per cent. It is heading in only one direction, and could be as high as 3 per cent when our two-year fix term ends.

Lenders, of course, follow the base rate when setting their rates. According to the data firm Moneyfacts, the average two-year fixed-rate deal has gone from 2.55 per cent to 3.74 per cent since we took out our loan, and the average five-year fixed rate is up from 2.78 per cent to 3.89 per cent. Next summer we may be offered 4 per cent, which could mean paying £1,000 more each month than we do now.

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So what can we do about it? Work is about to begin on the downstairs of our house, and it’s becoming ever more expensive because of inflation — we’ve now scaled back our plans and are leaving a tumbledown garage in place. We’ll mitigate the impact of our bigger future mortgage payments by setting aside money each month, and perhaps overpaying on our existing deal. We’ll burn through our savings.

However, for many borrowers coming off fixed rates next year, the prospect of a deal at a much higher rate is going to trigger a “payment shock”, as the broker Andrew Montlake puts it. Of course, at this time of pandemic, war, rising inflation and heatwaves, planning anything is difficult — from when to remortgage to how often to water the garden. I’ll be far from alone in facing nasty flashbacks over the coming months.

By DAVID BYERS

Source: The Times

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House prices fall for the first time in a year

The UK’s house prices fell slightly by 0.1% in July compared with June – that’s the first fall seen since June 2021, according to Halifax.

The lender says that the average home price in July was £293,221 and they are warning that house prices could fall further after the Bank of England raised interest rates this week.

In their latest report, Halifax says that house prices are still £30,000 higher than they were in July 2021.

The managing director of Halifax, Russell Galley, said: “Following a year of exceptionally strong growth, UK house prices fell last month for the first time since June 2021, albeit marginally.

“While we shouldn’t read too much into any single month, especially as the fall is only fractional, a slowdown in annual house price growth has been expected for some time.”

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‘Rising borrowing costs are adding to the squeeze’
He added: “Leading indicators of the housing market have recently shown a softening of activity, while rising borrowing costs are adding to the squeeze on household budgets against a backdrop of exceptionally high house price-to-income ratios.”

Mr Galley also highlights that some factors that led to the housing market growth through the coronavirus pandemic lockdown, which include homeowners saving money and looking for larger homes and properties in rural locations because of remote and flexible working practices, still remain.

He added: “Looking ahead, house prices are likely to come under more pressure as those market tailwinds fade further and the headwinds of rising interest rates and increased living costs take a firmer hold.

“Therefore, a slowing of annual house price inflation still seems the most likely scenario.”

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‘Long-term challenge from the short supply of homes’
Mr Galley also warns that there is a ‘significant long-term challenge’ from the ‘extremely short supply of homes for sale’ that will continue to underpin high property prices.

News of a potential slowdown in house price inflation comes after the Bank of England unveiled its largest interest rate increase in 27 years this week.

That move was aimed at curbing soaring inflation and interest rates were increased to 1.75%, from 0.5%.

The Halifax report highlights that Wales has moved back to the top of the table for annual house price inflation – up by 14.7%, with an average property price of £222,639.

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It is closely followed by the South West of England, which also continues to record a strong rate of annual growth, up by 14.3%, with an average property cost of £310,846.

The rate of annual growth in Northern Ireland eased back slightly to +14.0%, with a typical home now costing £187,102.

The lender says that Scotland too saw a slight slowdown in the rate of annual house price inflation, to +9.6% from +9.9%. A Scottish home now costs an average of £203,677, another record high for the nation.

And while London continues to record slower annual house price inflation than the other UK regions, the increase of 7.9% is the highest in almost five years.

With an average London property now costing £551,777, the capital’s already record average house price continues to push higher, up by £40,361 over the last year. It remains by far the most expensive place in the country to buy a home.

Source: Property 118

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Mortgage affordability test scrapped by Bank of England

Mortgage borrowing rules have been eased after the Bank of England scrapped an affordability test.

The “stress test” forced lenders to calculate whether potential borrowers would be able to cope if interest rates climbed by up to 3%.

Removing the test may help some potential borrowers get loans, such as the self-employed or freelance workers.

But other rules such as strict loan-to-income limits will not make it easier for most people to get a mortgage.

The withdrawal of the affordability test was announced in June but has come into effect on Monday.

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“Scrapping the affordability test is not as reckless as it may sound,” said Mark Harris, chief executive of mortgage broker SPF Private Clients.

“The loan-to-income framework remains so there will still be some restrictions in place; it is not turning into a free-for-all on the lending front.

“Lenders will also still use some form of testing but to their own choosing according to their risk appetite.”

In other words there will not be an immediate impact for borrowers as lenders will not need to change the way they assess loans.

However, some may well change their own rules in the future.

Mark Yallop, chairman of the Financial Markets Standards Board, said although the change would make it “slightly easier” for some borrowers to get a mortgage, he did not think with would have a significant impact.

“The biggest constraint on new mortgages is the ability of borrowers to afford a deposit,” he added.

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What was the scrapped test?
The mortgage affordability test was introduced in 2014 as part of a widescale tightening up of the mortgage market to ensure there were no repeats of the mis-selling scandal that partially contributed to the 2008 financial crisis.

The rule was put in place to ensure that borrowers did not become a threat to the financial stability of lenders by taking on debt they subsequently might not be able to repay.

Lenders had to not only work out if borrowers could afford a mortgage at the rate they were being offered, but also work out how they would be affected if interest rates soared by 3%.

Borrowers who could not prove they could cope with such an eventuality might have been turned down for a loan on that basis, even if they could easily afford a mortgage at the existing rate.

For that reason the test was seen by some as a barrier for some borrowers.

“The rule change could have a positive effect on borrowers who have been disadvantaged when it comes to getting on the property ladder,” said Mr Harris.

For example, some potential first-time buyers who have been comfortably affording rents far higher than potential mortgage payments have failed affordability assessments.

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What checks remain for borrowers?
There are some key protections in place to help ensure that borrowers don’t take on loans they may not be able to afford.

The main one is a loan-to-income “flow limit” which limits the number of mortgages that lenders can grant to borrowers at ratios at or greater than 4.5 the borrowers’ salary.

In short, it is very rare that a lender will consider a higher loan-to-income ratio because of the restriction.

After a review of the rules in 2021 the Bank of England’s Financial Policy Committee judged that “the LTI flow limit is likely to play a stronger role than the affordability test in guarding against an increase in aggregate household indebtedness and the number of highly indebted households in a scenario of rapidly rising house prices”.

“The change in the affordability rules may not be as significant as it sounds as the loan-to-income ‘flow limit’ will not be withdrawn, which has much greater impact on people’s ability to borrow,” said Gemma Harle, managing director at Quilter Financial Planning.

The FCA’s Mortgage Conduct of Business responsible lending rules also require a wide assessment of affordability.

By Simon Read

Source: BBC

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House prices grow at slowest monthly pace in a year – Nationwide

UK house prices rose in July at the slowest monthly rate in a year as rising inflation and interest rates take their toll, according to the latest survey from Nationwide.

House prices grew just 0.1% following a 0.2% increase in June, missing expectations of 0.3% growth.

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On the year, prices rose 11% in July, up from 10.7% growth the month before, with the average price of a home standing at £271,209, versus £271,613.

Nationwide chief economist Robert Gardner said: “The housing market has retained a surprising degree of momentum given the mounting pressures on household budgets from high inflation, which has already driven consumer confidence to all-time lows. While there are tentative signs of a slowdown in activity, with a dip in the number of mortgage approvals for house purchases in June, this has yet to feed through to price growth.

“Demand continues to be supported by strong labour market conditions, where the unemployment rate remains near 50- year lows and with the number of job vacancies close to record highs. At the same time, the limited stock of homes on the market has helped keep upward pressure on house prices.

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“We continue to expect the market to slow as pressure on household budgets intensifies in the coming quarters, with inflation set to reach double digits towards the end of the year.”

Victoria Scholar, head of investment at Interactive Investor, said: “The housing market remains robust despite concerns about an economic slowdown and near 10% inflation. Although there are signs that the pressures from inflation are weighing on the consumer with retail sales under pressure and confidence at a record low, the strength in the labour market coupled with a chronic supply shortage continue to support house price growth.

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“Plus, as interest rates look set to rise further, consumers may be looking to lock in today’s mortgage rates, on anticipation that they will become more expensive in the future.

“However, there are tentative signs that the housing market is starting to cool with July’s figures falling short of expectations and declining month-on-month as rising price levels and a softening economy take their toll.”

By Michele Maatouk

Source: Share Cast

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House prices continue to rise, but lengthier time to exchange

Residential properties across the UK have achieved an average selling price of 2.5% above the original instruction price, according to new research from TwentyEA.

TwenyEA’s latest property price data for June 2022 shows that the average price of a home has hit £400,000. The market does not appear to be slowing down, despite homeowners facing increased pressure on their finances, thanks to the cost of living crisis.

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Properties in the South West remain popular with home buyers, showing the strongest rates of house price growth over the last 12 months, with asking prices sitting at 18.24%, while growth in inner London is lagging, with the slowest rate of growth at 7.9%.

Wales is seeing the second highest asking price growth at 17.64%, followed by the West Midlands at 16.48% and the North East at 16.4%.

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The research shows that asking prices have risen by an average of 11% over the last 12 months and by 20% since 2019.

The TwentyEA research also reveals that average time to exchange on a property has risen dramatically, with June 2022 figures showing it is sitting at 136 days (4.5 months), 47% higher than the 92 days in June 2019. The time to exchange is measured by the lag in days between the last sale agreed date and the exchanged date.

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Stuart Ducker, strategic solutions director of TwentyEA, said: “Our analysis shows that despite soaring inflation and interest rate increases, property prices are still rising across the UK, with eight regions of the UK experiencing year-on-year asking price increases of more than 13%.

“While rising prices are good news for vendors, the average time to exchange is taking much longer, due to the lack of supply and delays in the chain forming. If vendors get a sale agreed on their property, it takes much longer to find somewhere they want to live.”

By MARC DA SILVA

Source: Property Industry Eye