40 finance providers ranging from UK clearing banks to hedge funds reported back in a survey by Knight Frank indicating improvements to the residential development finance landscape giving encouragement to the housing market and its desperate need to increase supply. 80% of the lenders expected to increase their exposure to residential development over the next... Read more
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Please advise me on how best to fight with this issue. I was recently refused a mortgage by a lender. They told me to check the credit agency Callcredit. I did and found it showed that I had late payments on my mortgage with the Woolwich. The reality is that I always pay my mortgage... Read more
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The National Association of Estate Agents has come out fighting over criticism of its recent claim that the number of first time buyers is declining.
Yesterday Neal Hudson, a Savills market analyst, said on Twitter “some of the NAEA data looks bonkers.” He returned to the attack this morning, detailing rival data from the Council of Mortgage Lenders which contradicted NAEA figures.
Earlier this week Chris Wood of PDQ Property tweeted a link to a story showing the number of first time buyers was rising rapidly and commented “more evidence that NAEA surveys are inconsequential.”
Some weeks ago housing analyst and buying agent Henry Pryor engaged in an exchange of tweets with the NAEA centred on the apparent contrast between the association’s figures and those produced by the Halifax building society.
Most of the controversy has arisen from a press release issued by the association in late July. It set the housing market agenda for some days and formed the basis for a front page story in the Daily Mail. It stated:
“First time buyers are being squeezed further out of the market, with sales by this group down five percentage points. The NAEA’s June Housing Market Report shows the number of first time buyers dropped to 20 per cent, down from 25 per cent in May, the lowest level recorded since May 2013. The first time buyer struggle is reflected in the age of this month’s house buyers, as those aged 18 to 30 represented just three per cent of all house sales in June, the lowest percentage of young house buyers recorded by the NAEA.”
But the Council of Mortgage Lenders, for example, claims there were 28,600 first-time buyer mortgages in June – seven per cent up on May’s figure and accounting for almost half of residential mortgage lending (excluding remortgages and buy to let).
And there were 30,000 more first-time buyers in the first half of 2014 than in the equivalent period in 2013, according to the First Time Buyer Tracker from LSL Property Services.
But NAEA president Simon Gerrard has told Estate Agent Today that the association’s figures - compiled from reports from around 500 agencies across the country - are right.
“There may be some in the industry who didn’t like the scale of coverage that it received and there may be explanations such as younger people watching the World Cup or being held back by MMR delays - but that doesn’t mean the figures were not right” he says.
“I run an 11 office agency and the association’s figures on first time buyers very accurately reflected the situation that I saw first hand. They were spot on" Gerrard insists.
- First Time Buyers
- housing market
Figures released this morning suggest that the mortgage market has rebounded after MMR, demonstrating that the new rules may slow mortgage giving but have not stopped it.
There were 66,279 house purchase approvals in July, with a 52 per cent increase in high loan-to-value lending to 11,533 approvals.
The data, from e.surv, shows last month to be the strongest July for house purchase lending since 2007, when there were 112,291.
Monthly mortgage approvals were 6.9 per cent higher, compared to 62,007 in May – the first full month in which lenders had to be fully compliant with the new MMR regulations.
The 11,533 high-LTV mortgages for borrowers with a deposit worth 15 per cent or less of the total value of their property, accounted for one in five approvals in July, compared to one in nine a year earlier.
The overall average LTV was 62.6 per cent compared to 60.6 per cent a year ago.
But the available stock of cheap housing is decreasing. There were 13,256 approvals on properties worth £125,000 or less in July 2014, 13 per cent fewer than a year before.
But e.surv says the increased willingness among banks to lend to high LTV borrowers has ensured the first-time buyer market has stayed strong.
Now the firm says analysts await the Bank of England Financial Policy Committee’s latest restrictions. From October 1, banks must limit lending to buyers at income ratios of 4.5 or above to 15 per cent of the total number of mortgage loans.
- First Time Buyers
With a view to netting the most column inches and cornering the headlines this weekend, Nationwide has declared Spurs to be the big winners of the new Premier League season - in house price growth, anyway.
In the 12 months to June, house prices in Haringey - home of Tottenham Hotspur’s White Hart Lane stadium - have increased by 32 per cent. At the other end of table, Newcastle saw growth of three per cent, while Burnley saw an increase of just two per cent and Hull City was firmly at the bottom with a big fat zero growth.
Nationwide has also analysed the Premier League teams by absolute house price, which would unsurprisingly put Chelsea and QPR as joint champions (average £760,144), with Arsenal (£701,030) in third and Tottenham (£513,435) dropping to fourth.
Hull City (£130,289) and Burnley (£112,868) would stay relegated at the foot of the table, but Newcastle United (£181,473) would comfortably escape the relegation zone and be replaced in the bottom three by Stoke City (£133,831).
Over the last 10 years, there are only three clubs in the current Premier League where house prices in the local area have increased by more than 100 per cent. Arsenal has seen the biggest increase with house prices in Islington increasing by 125 per cent. Hammersmith & Fulham - home to both Stamford Bridge (Chelsea) and Loftus Road (QPR) - has seen house prices rise by 110 per cent.
And while Manchester City won the 2013/14 Premier League, they do not rank as highly in the House Price Table finishing only joint 12th based on price growth with an average house price of £207,940, 73 per cent cheaper than Hammersmith & Fulham’s £760,144.
No comments about house price indices and balls, please.
- House Prices