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Strong demand in the rental market is combining with improved availability of mortgage finance for landlords. And that’s good news for the buy-to-let market.
A series of surveys has highlighted the surge in demand for rented property in recent months. One factor is the difficulty faced by first time buyers in getting onto the property ladder, with almost a quarter estimating it will take them five years to raise a deposit, according to one survey.
The number of loans approved for buying homes increased to 47,557 in March, according to latest figures from the Bank of England. The monthly total was well ahead of the average for the previous six months, and the highest since November.
Meanwhile, approvals for remortgaging fell from levels seen in February, leaving them at 32,116, slightly below the six-monthly average. Totals in previous months were thought to reflect expectations of a rise in interest rates, with many borrowers seeking fixed-rate deals.
House prices fell by 0.2% in April, according to the Nationwide. But the lender predicts that any further decline in the months ahead will be modest.
A three monthly comparison, which is said to give a better indication of the underlying trend, shows a 0.5% gain over average price levels recorded in the winter months.
Opinion remains sharply divided about interest-rate rises.
Recent Bank of England decisions leaving rates unchanged have been greeted with sighs of relief from mortgage borrowers. Business leaders too have been loud in their calls to keep rates on hold. But analysts feel that the Bank’s Monetary Policy Committee (MPC) risks losing credibility if it fails to act soon – while the City has already built rate rises into its calculations.
It looks like 2011 could be a good year for anyone seeking to develop or improve property.
Sweeping reforms to the planning system are set out in the Budget and other government documents. The aim – to create far more favourable conditions for all kinds of development to help boost growth. There will now be a presumption in favour of “sustainable development” – which, in other words, doesn’t conflict with key environmental goals, set out at a national level.
(more…)Chancellor George Osborne is being urged to re-think stamp duty in the run up to the Budget next week.
Stamp duty of 1% is payable by purchasers if the price of their new property is more than £125,000 – and at higher rates further up the scale, with thresholds at £250,000 and £500,000.
A leading housing charity has warned that a rise in interest rates could come as an unwelcome surprise for many homeowners.
Shelter is highlighting research carried out last year by the Council of Mortgage Lenders which showed that one in four mortgage borrowers did not appreciate that rates are at an historic low. According to the research, many of those borrowers believed that current rates were in fact significantly higher than they had been previously.
A highly regarded monthly survey paints an encouraging picture of the housing market in England and Wales.
The latest LSL /Acadametrics House Price Index shows that prices rose by 0.3% during February, equating to an increase of £657 in the value of the average property. The number of transactions increased by 2.4% to 41,200 – although that’s still almost 40% down on the long-term average.
Credit card spending “doesn’t feel like spending”. This, according to recent research from Barclays, is an attitude shared by around a third of young people. And, let’s face it, by many of us to a degree.
Be that as it may, the after effects are real enough. Figures from Go Compare suggest that 22% of British consumers will be carrying credit card debt throughout 2011, with some still paying for last Christmas half way through the year.
The roller coaster of speculation about interest rates has taken another dip, with the news that the UK economy shrank even faster than first thought in the last quarter.
Figures from the Office for National Statistics show that output fell 0.6% in the last three months of 2010. The severe weather is being blamed for the setback, but analysts note falls in household spending, and a slowdown in financial and business services dating back to October. So there is room for doubt about the strength of the recovery – even without the effects of the January VAT increase and expenditure cuts yet to be felt.
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GoRemortgage.co.uk is a trading style of Green Money Limited which is authorised and regulated by the Financial Services Authority for regulated mortgages and non-investment insurance contracts. FSA Number 482743. Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. The overall cost for comparison is estimated to be 5.01% APR. Subject to circumstance, a completion fee may be payable, typically 2%.
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