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Latest property news
Repossessions hit the highest number since 2014
The latest official data show that mortgage lenders’ claims for home repossession in England and Wales rose to the highest since late 2014 during the three months to June, this year.
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Latest property news
First time buyers are back in the market
First time buyers are back with a vengeance borrowing £5.9 billion in June, up 26% on June and 9% on the same month in 2016, the Council of Mortgage Lenders latest figures show. The increase is on the back of first time buyers taking out 36,000 loans in June, 22% more than the month before. The increase is more than a blip. Figures from the CML, which is soon to be renamed UK Finance, show that during the second quarter of this year first time buyer borrowing increased by 18% taking out 91,400 loans. “June’s figures show a busy month in the mortgage market, with home movers having their highest monthly activity levels for over a year and an especially high number of loans for first time buyers,” says Paul Smee, Head of Mortgages at UK Finance (pictured, left). “But there are also signs of a softening market and we are not anticipating that this performance will be sustained in the second half of 2017.” Home buyer borrowing also jumped during July, increasing by 26% month-on-month and 15% year-on-year although buy-to-let borrowing remains subdued, but still rising, by 3% both by month and year comparisons. The CML data also reveals that…
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Latest property news
Has the London rental market topped out?
The pressures and costs of living in the capital are persuading many tenants to look elsewhere to live as demand within the London rental market ‘slides’, it has been claimed. According to the National Landlords Association (NLA) the number of landlords in central London reporting a rise in tenant demand has dropped from 45% to 17% compared to January last year. But figures from the Council of Mortgage Lenders also suggest that the reduction in demand among tenants is down to increased number of first time buyers in the market, something that Prime Minister Theresa May put at the heart of her vision for Britain when she came to power last year. The CML’s latest figures show first time buyer mortgage borrowing increased by 9% in November, year-on-year. But London’s rental market problems, coupled to looming tax increases for landlords, are either driving many investors out of the market, or frightening them off new property purchases. The CML say that landlord borrowing has fallen by 10% year on year. The NLA says just 5% of London landlords say they plan to buy further properties this year, down from 15% last year, while outside London confidence is much higher. In the North…
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Latest property news
CML predicts fewer buy-to-let property purchases in 2017
The Council of Mortgage Lenders (CML) says the number of houses bought by landlords next year is likely to fall as several headwinds reduce demand for buy-to-let property. This includes the recently-introduced additional 3% Stamp Duty for buy-to-let purchases, the Prudential Regulation Authority’s buy-to-let lending stress tests starting on January 1st, and the new and less generous tax allowances for landlords, which kick off in April next year. Consequently, CML director general Paul Smee (pictured, below) says that although the overall mortgage market is resilient and will ‘plateau’ during 2017, buy-to-let lending is to likely to decline. The CML predicts that total lending for all types of mortgages in 2017 will be £248 million, approximately the same as 2016, before increasing in 2018 to £252 billion. But lending for new buy-to-let purchases is to decline in both 2017 and 2018, it says. “We expect any modest strengthening in home-owner lending to be rather offset by a less active house purchase market in buy-to-let, as both tax and regulatory changes bite on landlords,” says Paul. But lending is not the only dial on the buy-to-let market to be going down. Lender Landbay says average UK rental growth during 2016 halved from 2.34% to…
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Latest property news
Mortgage lending up to £18.2 billion in May
CML reports the highest figure since 2008 and they “don’t expect significant house price falls.”
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Latest property news
New Innovation Centre opens
CML Software has made the surprise announcement that it is opening a new office, aimed purely at innovating using new technologies, at the historic Cromford Mills, within striking distance of Derby. The first two employees for CML’s innovation centre have been hired and the office opens officially in the middle of May 2016. This news follows hot on the heels of CML’s recently announcements that it has been awarded a contract to supply its Radar software to Arun Estates, the largest independent estate agents in the South East of England, with a network of over 100 branches, and one other large – but as yet unnamed – agency, which further improves its market share in the medium to large agency market-place. Al Chetwode (left), Managing Director of CML Software is quoted as saying “We are delighted to be growing our technology base and we intend that our new offices will help us continue to drive innovation across the estate agency market-place. “ He adds “This is a very exciting time for CML Software and we can’t wait to start seeing the results from the new innovation centre.”
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Latest property news
HSBC quits CML
The HSBC has said that it will leave the CML by the end of 2016 as industry trade bodies get set to merge – and Barclays could follow. The bank has handed in its notice that it intends to leave the CML at the end of December – having served the requisite one year notice period. HSBC’s decision also comes after plans were unveiled in November to merge the CML with the banking industry’s other trade bodies; the British Bankers’ Association (BBA), Payments UK, the UK Cards Association and the Asset Based Finance Association. A spokesperson for HSBC said, “Given the anticipated creation of a new financial services trade association, we have given one year’s notice to the Council of Mortgage Lenders and our membership will end on 31 December 2016. HSBC supports the creation of a new trade association which will better serve all providers in the financial services sector and most importantly, our customers. We have and continue to value our work with the CML and believe a strong mortgage voice is critical within any new association.” Speculation is growing that Barclays may also hand in its notice to leave the CML. A Barclays spokesman commented, “We can…
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Latest property news
Mortgage lending at seven-year high
Gross mortgage lending rose by eight per cent in 2015, taking the estimated total for the year to £220.3 billion compared with £203.3 billion in 2014, according to the Council of Mortgage Lenders (CML). The CML estimates reveal that gross mortgage lending hit £19.9 billion in December, three per cent below November’s lending total of £20.5 billion, but 23 per cent higher year-on-year at £16.2 billion. Gross mortgage lending for the fourth quarter was therefore an estimated £62.3 billion, up 23 per cent on the corresponding period in 2014. “The low inflation environment, along with real wage growth, an improving labour market and competitive mortgage deals have all helped to underpin demand,” said CML Economist Mohammad Jamel. Looking ahead though, he said the upside potential looks limited over the near-term. He added, “The supply of existing and new properties on the market remains weak and affordability pressures weigh on activity. There is an added element of uncertainty as we wait to see the impact of tax changes on the buy-to-let sector.”
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Housing Market
U-turn on BTL attack will not happen
The Government’s sudden attack on landlords is unlikely to end anytime soon despite widespread criticisms. The Government has come under attack for its plans to introduce a 3 per cent stamp duty surcharge on buy-to-let and second home purchases and slash the tax relief that landlords can claim on buy-to-let income. The CML is the latest in a long line of commentators calling for a Government U-turn on the buy-to-let onslaught. The trade body is urging the Government to reform its implementation plans for a stamp duty surcharge, to mitigate potentially negative impacts on the housing market as a whole. Paul Smee (left), CML Director General, said, “Our longstanding view is that stamp duty is a blunt policy lever. Given the complexity of the proposals, we also suspect that in practical terms the surcharge could cause more problems than it solves. We urge the government at least to move away from a position where people will have to pay and then potentially claim back to one where payment is deferred, and only triggered if the buyer genuinely falls into the intended target category.” But David Cox (right), Managing Director of ARLA, does not expect a change in Government policy any…
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Latest property news
Mortgage lending hits 7-year high
Mortgage lending has surged to its highest level since 2008 as borrowers rush to take advantage of highly competitive home loan deals. Fresh data provided by the Council of Mortgage Lenders (CML) shows that lenders advanced a total of £21.8 billion last month, up 19 per cent on the £18.4 billion lent a year earlier and 8 per cent on September’s total of £20.1 billion. October’s lending total is the highest since July 2008, when lenders advanced £23.6 billion. The CML said total mortgage lending across 2015 looks likely to top its previous estimate of £209 billion as mortgage lenders continue to compete for business by keeping borrowing rates low. Separate figures from MoneySuperMarket revealed that the average two-year fixed-rate mortgage rate fell to 2.68 per cent in October, from 2.72 per cent in September, while the typical three-year fixed rate on offer dropped from 3.1 per cent in September to 3.08 per cent in October. Bob Pannell (left), the CML’s Chief Economist, commented, “As lending in the regulated mortgage space picked up over the summer months, the pace of recovery has improved. This looks set to continue over the closing months of the year with the factors helping support…
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