Marketing No Comments

More Mortgages Agreed by Lenders in Early 2021

Mortgage commitments agreed by lenders were a quarter more at the end of 2020 than at the end of 2019, the private investor platform Hargreaves Lansdown has highlighted.

Advances actually paid in the fourth quarter of 2020) were also up on the same quarter a year earlier, but this time by only 4.2 per cent. In the year as a whole they were unsurprisingly down by 9.8 per cent.

The value of balances in arrears rose by 3.4 per cent in the last quarter and is now just under 1 per cent of all mortgage balances.

To find out more about how we can assist you with your Mortgage requirements, please click here to get in touch

‘The race for space has turned out to be more of a marathon than a sprint’, said Hargreaves Lansdown personal finance analyst Sarah Coles.

‘We’ve been snapping up mortgages at the fastest rate since the onset of the financial crisis – and that was even before we knew the stamp duty holiday would be extended.

‘The mortgage market was booming at the end of last year, and the mortgages being agreed for the start of 2021 were at their highest for 14 years’.

Discover our Residential Mortgage Broker services.

Meanwhile, arrears are starting to grow, said Coles. But ‘let’s not get ahead of ourselves, arrears are still incredibly low: right now they’re at 0.93 per cent compared to 3.64 per cent in early 2009. However, during the pandemic millions of borrowers have been able to rely on payment holidays, so have been able to avoid paying without running up arrears. Now that support is winding down, anyone who’s still struggling is running out of road. When the FCA asked people in October, 19.6m expected to be struggling to pay the bills or service their debts by April. By the time we get the March figures, arrears could look much worse’.

Source: Landlord Knowledge

Discover our Mortgage Broker services.

Marketing No Comments

HMRC: Highest number of February residential transactions since 2007

The provisional seasonally adjusted estimate of UK residential transactions in February 2021 was 147,050, up 48.5% annually, according to the latest HMRC Property Transaction data.

On a monthly basis the estimate is also up 23%, and these figures are the highest number for the month of February since 2007.

Looking to the estimate of UK non-residential transactions in February 2021, this was up 10.2% year-on-year to 10,630, and 25.8% higher than January 2021.

The non-seasonally adjusted estimate of UK residential transactions in February 2021 was 122,840, 48.3% higher than February 2020 and 26.4% higher than January 2021.

Non-seasonally adjusted non-residential transactions in February 2021 was 9,230, 9.9% higher annually and 27.7% higher than the month prior.

Guy Gittins, chief executive of Chestertons, added: “While there is no doubt that there are a lot of people very keen to move home, many didn’t feel comfortable starting the process until they had some idea of when the country might be out of lockdown.

“Once this was provided, we noticed an immediate uplift in new buyers registering with us, and the subsequent announcement confirming the extension of the stamp duty holiday only added to this.

“As the country emerges from lockdown, we expect moving home will be many people’s top priority; just as we saw after the first lockdown; and are therefore anticipating a very busy spring and summer market.

To find out more about how we can assist you with your Mortgage requirements, please click here to get in touch

“We currently have around 70% more properties on the market for sale than we did last year.

“This is good news for buyers as it means that substantial price increases are relatively unlikely for the time being and that there are generally more homes to choose from.”

David Whittaker, chief executive at Keystone Property Finance, added: “Putting these figures into context, today’s HMRC data looks at property transactions before the stamp duty land tax holiday was extended in the Chancellor’s Budget this March.

“As was speculated at the time, today’s figures confirm many purchases rushed through in February as buyers and sellers took advantage of the tax break.

“The stamp duty holiday presents an excellent opportunity for landlords looking to increase their portfolio and cash in on the tax break, however there are significant challenges to navigate as well. 2020 was a challenging year for the buy-to-let market.

“We saw a raft of regulatory changes in areas from energy rating requirements to mortgage payment tax relief and unprecedented market conditions of surging demand paired with limited capacity while working from home.

“These factors have created an unfamiliar market for even experienced landlords.

Discover our Residential Mortgage Broker services.

“In these times, it is even more essential that borrowers are seeking broker support and guidance to help them secure the best product available.”

Tomer Aboody, director of property lender MT Finance, also reacted to these figures: “With the strongest housing market in more than a decade, both home buyers and investors are taking advantage of historically low borrowing rates.”These favour both those buying a property to live in and those seeking rental assets for yield, significantly boosting the number of transactions.

“With the extension of the stamp duty break, further buyers have decided that now is the time to buy with a potential saving of up to £15,000 to tempt them.

“This saving, along with high loan-to-values and cheaper mortgages, is making this a sellers’ market, with buyers waiting in the wings to pounce.

“Many are prepared to pay higher prices than the past few years so as not to miss out, which is pushing values even higher.”

By Jake Carter

Source: Mortgage Introducer

Discover our Mortgage Broker services.

Marketing No Comments

The Budget stimulated an 80% rise in buyer demand

The recent Budget stimulated an 80% rise in buyer demand for property compared to the four-year average, according to Zoopla’s monthly House Price Index.

Despite this, the supply of new homes is down 13%, compared to the 2020 average.

Zoopla outlined that the volume of homes for sale is expected to recover as the COVID-19 vaccination programme continues to gather pace and the Prime Minister’s roadmap out of lockdown comes into effect.

From a national perspective, average home values are up 4.1% since the start of the first lockdown, amounting to £8,907 on the year or £750 per month.

While annual house price growth is down slightly from 4.4% last month, this marks the fourth consecutive month of house price growth over 4%.

Regionally house price growth in the Midlands, North of England, Wales and Scotland are at an almost 10-year high, fuelled by the relative affordability in these markets.

At a city level, Liverpool and Manchester continue to show the strongest levels of annual house price growth, up 6.6% and 6.4% respectively.

Sales agreed are up 5.3% compared to the same period in 2020, and the average time to sell a property in the UK has fallen by nearly a week across the UK excluding London, down from 50 days in 2020 to 44 days.

To find out more about how we can assist you with your Mortgage requirements, please click here to get in touch

In contrast, London is the only region in the UK where properties are taking longer to sell.

The North East and the North West have recorded the highest reduction in time to sell on a regional level, falling by 17 days and 12 days, respectively.

At the same time, the North West and Yorkshire and the Humber are the fastest moving markets in the UK, with sales agreed on properties in an average of just 38 days from the point of listing.

The index also revealed that houses are selling three weeks faster than flats.

The lockdown-led ‘search for space’ means houses are taking an average of 42 days to go from the point of listing to sale agreed, this compares to 62 days for a flat.

Demand for three-bed homes rose by 30% in the week after the Budget, in relation, the average value of a house has risen by 4.9%.

Meanwhile, the average price of a flat has increased by 1.9% over the same timeframe.

An estimated 130,000 properties for sale in England will be stamp duty free for another six months following the Budget which will amount to £123m saved in tax.

Overall, Zoopla anticipates that more than half a million buyers this year will benefit from some level of stamp duty relief.

David Ross, managing director of Hometrack, said: “The 95% LTV mortgage guarantee scheme and the stamp duty extension outlined in the Budget have led to a spike in buyer demand, which was up 24% in the days following the announcement.

“The stimulus provided by the mortgage guarantee scheme will likely promote a similar increase of uptake of higher equity loans from the knock-on in demand up the property chain.

“With time to complete standing at around four months, buyers in the North of England look set to benefit the most – with two-third of local stock under £250,000 in value, and therefore always exempt from stamp duty.

Discover our Residential Mortgage Broker services.

“While prospects for the wider housing market have improved on the back of the Budget, the post-lockdown path to the full reopening of the economy and unwinding of support measures will still have a big impact.

“Therefore, we still expect house price growth to moderate later in the year, but overall transactions look set to get an additional boost from the stamp duty measures.”

Nigel Purves, chief executive of Wayhome, added: “With a full year of lockdown behind us, there has been increased momentum in the housing market ahead of the busy Spring period.

“Indeed, house prices were up by 4.9% year on year and flats were also up by 1.9% over the same period.

“Over the coming months with offices, shops and restaurants set to reopen, we may witness some individuals turning back to connectivity and convenience, while others continue their ‘search for space.

“While the introduction of 95% loan-to-value mortgages may bring hope to those wanting to step foot on the ladder, affordability remains a serious problem.

“There are many households whose incomes still won’t meet the criteria for mortgage approval, despite their ability to consistently pay rent on the kind of homes they would like to buy.

“Going forward, the government needs to work with the property industry to better support alternative routes to help ‘reluctant renters’ achieve homeownership.”

By Jake Carter

Source: Mortgage Introducer

Discover our Mortgage Broker services.

Marketing No Comments

Scottish residential property revenues and volumes up over 20%

Scottish residential property revenues and sales volumes rose over 20% in the past six months according to analysis of the latest Scottish government data by UK-wide letting firm, apropos.

The data found that completed property sales rose 23.2% and government revenue was up 20.4% from September 2020 to February 2021 compared to the same period in the previous year.

The volume of sales covering the six-month period rose from 51,030 to 62,850 while revenue from land and buildings transaction tax (LBTT) increased from £208.2m to £250.7m.

To find out more about how we can assist you with your Mortgage requirements, please click here to get in touch

David Alexander (pictured), joint chief executive officer of apropos, said: “September was the first month to show the impact of raising the LBTT threshold and this data highlights just how successful this policy was over the following six months in kick starting the property market through what could otherwise have been a fairly moribund period.

“The four-month period from September to October showed the highest volume of completed transactions since LBTT was begun and the greatest revenues received by the Scottish government.”

“There is little doubt that these record figures for transactions and revenues would have continued if the threshold for paying LBTT had continued for longer. Individual home buyers have benefitted from this policy and the Scottish Government has benefitted from an additional £42.5m which it would otherwise not have received.”

Discover our Residential Mortgage Broker services.

“The ending of the stamp duty holiday at the end of March is clearly already having an impact on sales (both January and February numbers are nearly 50% lower than December) and I would expect the March figures to be static and then a sudden dip in volumes and consequent fall in revenues for the Scottish government in April and beyond.

“Despite widespread support from homebuyers and the property market the Scottish government remains intransigent on maintaining a policy which directly benefits individuals and raises essential funds for their coffers at this difficult time for the economy.

“Despite this win-win tax reduction the Scottish government seems disinclined to maintain a popular and successful policy even though the Westminster Government is sustaining their stamp duty saving for a further six months. We shall see how much of a disadvantage this produces for the Scottish homebuyer and the wider housing market in the next few months.”

Source: Property Wire

Discover our Mortgage Broker services.

Marketing No Comments

Cornwall replaces London as most searched location to live

Cornwall has replaced London as the most searched for location to live, according to data collected by Rightmove.

Rightmove registered over five million searches in a month in February 2021 for properties within the county of Cornwall.

The property portal suggests that people are seeking the countryside, coastal towns and villages to move to following ‘stay at home’ restrictions.

Dorset has also risen up from position 20 to position 10.

Six of the top 10 locations noting the largest rise in buyer searches over the past year have been in Cornwall and Devon.

To find out more about how we can assist you with your Mortgage requirements, please click here to get in touch

The village of Stithians in Cornwall has risen by a 224% on this time last year.

When looking at the second half of 2020 annual sales agreed grew by 69% in rural areas, compared to 49% in urban areas as more people looked to escape to the country.

Looking by number of bedrooms, five-bed detached homes have seen the biggest jump in sales being agreed, up by 38%, followed by four bed properties, up by 26%.

Rightmove outlined that this is also a likely result of the temporary stamp duty holiday savings being largest for more expensive homes.

The data shows that there has been a shift in more people who currently live in a city enquiring about a property that is outside of that city.

The biggest shift has been in London where this time last year 39% of Londoners were enquiring outside of London.

This has jumped up to 52%, and the trend is the same across all 10 of the biggest cities in the UK.

According to Rightmove, a year ago the most sought after property type for tenants was a two bed flat, and this has been replaced by a two bed semi-detached house, due to the desire for more space and a garden.

Asking rents over the past year vary dramatically, with double digit growth in some towns and suburbs, compared to double digit declines in areas of London.

Tim Bannister, director of property data at Rightmove, said: “The stand-out trends over the past year have been increased demand for countryside and coastal living, more people making the dream of a detached home a reality, and the increased appeal for a garden.

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

“The huge population of London means that traditionally it’s the most searched for location on Rightmove, but the appeal of the coast and the countryside over the past year has seen Cornwall crowned the new capital this year.

“More space has always been the most common reason for people moving home, but the evolution for many from balancing their laptop on the end of a bed last March to making an office a permanent addition to a home, whether that’s by converting a bedroom, garage or garden shed, has led to a need for even bigger homes than before.

“This is evident with five bed detached homes seeing the biggest growth in sales, and two bed homes becoming the most sought after for people renting.”

By Jake Carter

Source: Mortgage Introducer

Discover our Mortgage Broker services.

Marketing No Comments

Majority of landlords waiting for lockdown measures to ease before investing

Over half (59.8%) of BTL landlords are waiting for lockdown measures to ease before investing in properties, according to the National Landlord Index by Accommodation.co.uk.

The research highlights that UK landlords still see the rental market as a safe place to invest especially as the stock market has been so volatile during the pandemic.

This desire from landlords to expand their property portfolios in 2021 is reflected in the demand for buy-to-let mortgages with the index revealing that nearly two-fifths (37.8%) of landlords are planning to apply for one this year.

To find out more about how we can assist you with your Mortgage requirements, please click here to get in touch

As the UK starts to see the benefits the vaccination has on the economy, Accommodation.co.uk says it is “clear” that landlords are optimistic that this recovery will be reflected in house prices long-term.

Aaron Short, founder and chief executive at Accommodation.co.uk, said: “We are always listening to our landlords and tenants to understand the needs of the market and this is why the National Landlord Index remains so important.

Discover our Buy to Let Mortgage Broker services.

“Understanding how BTL landlords are being impacted by lockdown measures and what their plans are post-pandemic help us to understand the future lettings market. It is great to see landlords looking to expand portfolios and generally positive about the future and this certainly mirrors the growth we have seen at Accommodation.co.uk.

“We have been at the forefront of updating this archaic industry and we believe our award-winning model offers tenants and landlords the best solution in the current market.”

Source: Property Wire

Discover our Mortgage Broker services.

Marketing No Comments

UK housing stock now worth a record £7.56trn

The total value of the UK’s housing stock has hit a record high of £7.56trn despite the pandemic and prevailing economic uncertainty, according to Savills.

The total UK housing value, which rose £380bn compared to 2019, now stands at four times the value of all companies in the FTSE 100.

The value of housing in the North of England saw its strongest growth since 2005 with a £59bn gain, while London and SE account for around £1.8trn and £1.4trn respectively, an increase of 23% and 18% of the total.

To find out more about how we can assist you with your Mortgage requirements, please click here to get in touch

The value of mortgaged owner occupied homes passed £2.5 trillion for the first time, driven by support from the Bank of Mum and Dad, longer mortgage terms, and the support of Help to Buy, Savills reported.

The mortgage guarantee scheme announced in this month’s Budget will boost this figure further.

Lawrence Bowles, a director in Savills residential research team, said: “People reassessed their housing needs and preferences as a result of the pandemic and that drove a surge in transaction activity in the second half of last year.

“This triggered rapid price growth as many buyers who felt secure in their finances looked for larger homes to accommodate the multiple demands of home working and home schooling, as well as extra space for living and leisure.  It also meant that the total value of properties held with a mortgage rose by 6.9% as people stretched their borrowing to accommodate lifestyle demands.”

Discover our Residential Mortgage Broker services.

Total value% growthIn 2020Value gainIn 2020
London£1,765bn6.1%£101bn
South East£1,420bn4.9%£66bn
East of England£855bn4.7%£39bn
South West£706bn6.2%£41bn
North West£561bn6.2%£33bn
West Midlands£508bn4.9%£24bn
East Midlands£418bn5.5%£22bn
Yorkshire and the Humber£411bn5.0%£20bn
Scotland£390bn4.5%£17bn
Wales£245bn3.8%£9bn
North East£158bn4.4%£7bn
Northern Ireland£117bn3.2%£4bn
United Kingdom£7,555bn5.3%£380bn
Source Savills Research using ONS, Land Registry, MHCLG, UK Finance

By MARC DA SILVA

Source: Property Industry Eye

Discover our Mortgage Broker services.

Marketing No Comments

Rental growth reaches a record 8.0% outside London

Rental growth outside London has hit 8.0%, the highest figure ever recorded by the Hamptons monthly letting index.

The cost of renting rose by 10.6% in the South East, the first time the region has entered into double-digit growth.

Rental growth nationally has been fuelled by a lack of stock – 300,000 fewer properties have come onto the rental market since the onset of the pandemic (March 2020 to February 2021), nearly a fifth less than during the preceding 12 months.

To find out more about how we can assist you with your Mortgage requirements, please click here to get in touch

Aneisha Beveridge, head of research at Hamptons, said: “This year we’ve seen a sharp decline in the number of rental homes coming onto the market. Would-be tenants are now faced with significantly less choice, which in turn is pushing up rents.

“And with many landlords having multiple offers on the table, half of investors have been able to increase the rent they charge.

“Rental stock levels have also been hit with the onset of the pandemic causing investors to hold back. This has been compounded by emergency legislation which saw landlords having to extend a tenant’s notice period to a minimum of six months, reducing turnover further.

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

“At the same time, many renters who were looking to buy had to put their plans on ice and continue renting, as banks sought larger deposits for house purchases.”

Rents in inner London, where demand has been decimated by the pandemic, have fallen by 17.7% to £2,185.

However in Outer London rents grew 5.3% annually, suggesting expensive areas where rents have fallen the most.

Beveridge added: “Over the last five months, and in an effort to beat the original stamp duty deadline of the end of March, landlord purchases started to rise, which will add to stock levels when these homes complete.

“Meanwhile the government announced a new Mortgage Guarantee Scheme in the Budget which is aimed at helping would-be buyers with small deposits, many of whom are currently renting. Both factors, alongside the ending of the eviction ban in April, mean rental stock levels may have bottomed out.”

BY RYAN BEMBRIDGE

Source: Property Wire

Discover our Mortgage Broker services.

Marketing No Comments

UK Housing Market Holds Steady Despite Lockdown, Survey Has Found

The UK housing market strengthened in February, research published on Thursday showed, ahead of the chancellor’s decision to extend the stamp duty holiday.

According to the latest RICS UK Residential Survey, the net balance for house price growth was +52% in February compared to +49% in January. Newly agreed sales improved to +1%, against January’s net balance of -17%.

The net balance for new buyer enquiries was -9% at the national level, the second consecutive negative monthly figure. However, it was a significant improvement on January’s reading of -29%. New instructions strengthened from -40% in to -29%.

The outlook also improved, with the Royal Institution of Chartered Surveyors noting: “Current lockdown restrictions appear to be deterring new vendors putting their homes up for sale. However, forward-looking metrics have shown some improvement, with sales expected to rise modestly over the coming three months.

To find out more about how we can assist you with your Mortgage requirements, please click here to get in touch

“What’s more, it’s important to note that over three-quarters of the survey sample was gathered prior to the chancellor confirming that the stamp duty holiday would be extended until the end of June, and then tapered through to October, in the recent Budget.”

Twelve-month price expectations also picked up, with the UK-wide net balance coming in at +46%, compared to +30% in last month’s survey.

The UK housing market has boomed recently, fuelled by a rise in the stamp duty threshold and pent-up demand following the first national lockdown, when estate agents and construction sites were forced to close.

The market was widely expected to soften ahead of government schemes such as the stamp duty holiday and furlough ending this spring. But last week Rishi Sunak extended both schemes, with the latter now due to end in September.

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

Simon Rubinsohn, RICS chief economist, said: “The measures should help support the housing market over the coming months, with concerns around a cliff edge end to the stamp duty break eased.

“However, a very clear message emanating from the latest survey is that more needs to be done to address the shortfall in supply, with price and rent expectations very evidently continuing to accelerate. Planning reform, which the government is addressing, alongside supporting a sustainable and inclusive recovery in the economy are key elements in encouraging the private sector to increase the pipeline of new build.”

By Abigail Townsend

Source: Sharecast

Discover our Mortgage Broker services.

Marketing No Comments

Value of new mortgage commitments reach highest level since 2007

The value of new mortgage commitments was up 24.2% annually to reach £87.7bn, and is at the highest level since 2007 according to the Financial Conduct Authority (FCA).

The quarterly mortgage lending statistics data also shows that the outstanding value of all residential mortgage loans was £1,541.4bn at the end of Q4 2020, 2.9% higher than a year earlier.

The value of gross mortgage advances in Q4 2020 was £76.6bn, 4.2% higher than in Q4 2019.

To find out more about how we can assist you with your Mortgage requirements, please click here to get in touch

Since the beginning of 2007, am estimated 340 regulated mortgage lenders and administrators have been required to submit a Mortgage Lending and Administration Return (MLAR) each quarter, providing data on their mortgage lending activities.

The FCA and the Prudential Regulatory Authority (PRA) both have responsibility for the regulation of mortgage lenders and administrators so this data publication is joint.

Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “The highest volume of mortgage commitments since 2007 has been fuelled by the stamp duty holiday.

Discover our Residential Mortgage Broker services.

“It not only means that brokers will have a very healthy pipeline of business throughout the start of this year but also there is plenty of momentum in the market.

“The stamp duty holiday extension until the end of June should help to maintain high volumes but brokers need to be mindful of the time it takes for offers to complete. New buyers or movers need to have contingency plans in case they miss the June deadline and are faced with a tax bill.

“The huge numbers in Q4 have been fuelled mainly by movers and first time buyers but there is still a large market out there for remortgage business.”

By Jake Carter

Source: Mortgage Introducer

Discover our Mortgage Broker services.