Posts with tag: homebuyers

eMoov Releases its National Demand Index for Q2 2017

Published On: June 16, 2017 at 9:55 am

Tags: homebuyers,property demand,property market

Online estate agent eMoov.co.uk has released its National Demand Index for the second quarter (Q2) of the year, assessing which parts of the UK are currently seeing the largest and lowest spikes in property demand, as well as the greatest fluctuations since the previous quarter.

The property demand percentage indicates where is currently the hottest spot. However, it does not necessarily mean that this is the area with the largest growth since the previous quarter. Often, sustained levels of high demand can lead to inflation in house prices and a decline in demand on the previous quarter.

The National Demand Index looks at the balance between the supply and demand of housing stock in a given area, and attributes a percentage score based on the level of stock available on major property portals compared to that which has already sold.

Across the UK as a whole, property demand has risen by 4.54% on Q1, now standing at 36.07% overall. Wales has seen the greatest increase, of 12.33%, although current demand is still the lowest of all four nations, at 30.72%. Scotland is the only nation to record a fall in demand in Q2, down by 3.04% to 36.21%. England experienced the second largest pickup in demand, of 4.91%.

The 150 most populated towns and cities

The most populated towns and cities have seen increases over the past quarter, with demand up by 1.32%, from 43.19% to 43.77%.

The hottest

Topping the list for hottest demand is Warwickshire’s Rugby, at 70.76%. Rugby is closely trailed by Portsmouth (65.76%), Solihull (64.15%), Bristol (64.06%) and Colchester (61.68%).

Biggest jumps

Wigan enjoyed the greatest climb since Q1, with an increase of 67.60%, taking demand to 37.06% in Q2. Tynemouth placed second, with a 54.75% jump to 43.75%. The next three highest increases were seen in Basingstoke (32.96%), Canterbury (24.21%) and Newport in Wales (24.16%).

The coldest

Meanwhile, the UK’s coldest spot is still Aberdeen, with an 11.07% demand level. Hartlepool follows, with demand at 16.63%, while Darlington, Middlesbrough and Bradford complete the top five coldest locations for property demand, at 18.86%, 19.13% and 20.57% respectively.

Biggest drops

The greatest fall was felt in Chester, by 23.12%, down from 41.25% in Q1 to 31.71% in Q2. Gillingham in Kent saw demand drop by 17.88% to 51.61%, while Harrogate (16.05%), East Kilbride (15.85%) and Slough (15.16%) also endured some of the largest declines of the quarter.

The Founder and CEO of eMoov, Russell Quirk, says: “A slight decrease in demand across the major towns and cities of the UK during Q2 echoes reports by other price-based industry sources that the market is slowing down a touch. Although demand has fallen marginally, there is still an abundance of buyer interest across the nation in the more affordable markets and, overall, the UK property sector has been ticking along fairly well given the turbulent year it has had.”

eMoov Releases its National Demand Index for Q2 2017

London

Over Q2, the capital saw a 1.62% increase in property demand compared with Q1, at 32.46%.

The hottest

Bexley remains the most in demand London borough, at 58.14%, followed by Newham (53.34%), Sutton (52.09%), Havering (48.46%), and Barking and Dagenham (46.34%).

Biggest jumps

However, Greenwich experienced an incredible 83.42% surge in property demand on Q1. Lambeth (58.53%), Southwark (58.34%), Kingston-upon-Thames (25.92%) and Ealing (7.56%) have also recorded some of the largest increases since the start of the year.

The coldest

The majority of the capital’s coldest boroughs for property demand are located in prime central London. The City of Westminster currently has the lowest demand, at 10.41%, followed by Kensington and Chelsea (10.51%), Hammersmith & Fulham (13.19%), Camden (16.09%) and the City of London (16.16%).

Biggest drops

The City of London saw the largest decrease between Q1 and Q2, of 20.13%. Similarly, the trendy borough of Hackney saw demand drop by 18.85%, followed by Lewisham (13.94%), Wandsworth (13.61%) and Hounslow (12.56%).

Quirk comments: “An increase in demand across the capital may come as a surprise to some, but a cooling market in London where price is concerned will always bring opportunistic and aspiring buyers out of the woodwork in search of a good investment.

“This latest data further demonstrates the multifaceted property market in London, as overall demand is driven by the more affordable peripheral boroughs, dragging the over-inflated boroughs along with them by their ear.”

England

Property demand across England has also enjoyed a slight uplift in Q2, up by 4.91% to 41.26%.

The hottest

East Sussex leads England as the hottest county for property demand, at 63.44%. The City of Bristol is close behind, at 56.14%, followed by Northamptonshire (54.57%), Suffolk (53.08%) and Hampshire (51.84%).

Biggest jumps

Hampshire recorded the most significant climb in Q2, up by 58.25%. East Sussex is not only the hottest county, but has also seen the second largest spike in demand, up by 42.37%. In third place is Surrey (42.10%), followed by the Isle of Wight (41.70%) and Devon (18.42%).

The coldest

County Durham continues to record low levels of property demand, at 21.17%, followed by Cumbria (26.32%), Lancashire (27.88%), Tyne and Wear (28.99%) and Northumberland (29.37%).

Biggest drops

Some of the current coldest spots are also some of the areas to have experienced the most significant decreases since Q1. Lancashire saw the greatest drop, of 26.29%, along with Northumberland (21.09%), County Durham (6.93%), Bedfordshire (3.77%) and Northamptonshire (2.91%).

Quirk explains: “There are always areas across England that perform consistently well and those that don’t, but it is the swings in demand across the nation that provide the most interesting insight into where UK buyers are searching for property. Despite the higher price of property, the more southern counties seem to be increasing in demand; perhaps as previous low demand levels have reduced the price a touch, whereas the previously more popular counties to the north have suffered a decline.

“Bristol seems to consistently rank as a top area for buyer demand, which is good news for homeowners in the area, but, on the flipside, those in County Durham won’t be as happy, having seen prolonged degrees of weak demand.”

Wales

Property demand in Wales jumped by 12.33% over the past quarter – the housing market in the country is clearly on the up after a tough few years and is performing better than anywhere else in the UK.

The hottest

Q2 figures show that Newport is the hottest spot in Wales, with demand at 51.72%. Caerphilly is a close second, at 48.29%, followed by Cardiff (45.83%), Monmouthshire (41.56%) and the Vale of Glamorgan (40.99%).

Biggest jumps

Ceredigion experienced the greatest climb in Wales from Q1 to Q2, of 27.52%. Conwy (21.34%), the Isle of Anglesey (16.88%), Carmarthenshire (14.63%) and Denbighshire (13.70%) also enjoyed some of the largest rises of Q2.

The coldest

Denbighshire (15.19%), Pembrokeshire (16.68%), Gwynedd (18.86%), Ceredigion (20.09%) and Powys (20.46%) are the coldest spots for property demand in Wales.

Biggest drops

The largest falls in demand were recorded in Wrexham (6.49%), Bridgend (3.67%), Torfaen (2.47%) and Powys (2.09%).

Quirk responds to the figures: “The Welsh property market’s growth rate is well ahead of the rest of the UK in the last quarter, as demonstrated by the latest industry data, which shows promise in renewing the nation’s property market and the wider economy.

“Although the industrial landscape may have all but vanished, Wales is evolving as a country, and its major cities have become go-to destinations for tourism, education and business. Not only is the nation on the up regarding its appeal, but it also has some of the most affordable property in the UK, which is a driving factor behind the high demand currently seen in the Welsh property market.”

Scotland

Demand across Scotland as a whole has dropped by 3.04% on Q1, now standing at 36.21%.

The hottest

Demand in the City of Edinburgh is the hottest in the country, at 58.26%. A tight race remains between East Renfrewshire (56.83%), the City of Glasgow (55.46%), West Lothian (54.50%) and Falkirk (50.19%).

Biggest jumps

Stirling saw the largest climb over the past quarter, up by 18.89% to 46.65%, followed by East Dunbartonshire (16.01%), East Lothian (13.01%), Midlothian (10.73%) and the Highlands (8.32%).

The coldest

On the other side of the spectrum, the top five coldest spots are: Aberdeenshire (11.25%), the City of Aberdeen (11.76%), Angus (16.20%), Dumfries and Galloway (19.09%) and the Western Isles (22.55%).

Biggest drops

The most significant decline was recorded in South Ayrshire, with a drop of 53.71%, taking property demand to 31.09%. The Orkney Islands saw the second largest decrease (38.09%), followed by Angus (21.88%), the City of Aberdeen (16.61%) and the City of Dundee (9.78%).

Quirk comments: “Uncertainty has plagued the UK’s housing market, specifically in Scotland, because of political instability, first as a result of the Brexit vote last year and then through a renewed campaign of an independent Scotland. However, there are signs that the market will persevere, with many of the nation’s major cities, such as Edinburgh, Stirling and Glasgow, growing in demand and will likely keep the Scottish market afloat.”

Homebuyer Activity Dropped in April, but is Up on Last Year

Published On: June 14, 2017 at 8:11 am

Author: Em Morley

Categories: Property News

Tags: first time buyers,homebuyers,Mortgage lending,mortgages,property market

Homebuyer activity was down by 14% on a monthly basis in April, but was up by 19% on last year, shows the latest mortgage lending trends report from the Council of Mortgage Lenders (CML).

The data shows that homebuyers borrowed £9.6 billion in April, amounting to 51,200 loans, which is down by 16% on March, but up by 9% on April 2016.

Within this, first time buyers borrowed £4.1 billion – down 16% on March, but up by 8% on April last year. They took out 25,400 loans – 18% less than in the previous month, but 2% more than 2016.

Homebuyer Activity Dropped in April, but is Up on Last Year

Meanwhile, home movers borrowed £5.5 billion – down by 11% on March, but up by a significant 28% annually. This equated to 25,700 loans – a drop of 15% on a monthly basis, but up by 17% year-on-year.

Homeowner remortgage activity was down by 16% by value and 18% by volume on March’s figures, the CML found. Compared to April last year, remortgage lending was down by 15% by value and 16% by volume.

Gross buy-to-let lending also saw month-on-month decreases – down by 17% by value and 16% by volume. Compared to last year, the number of loans rose by 1%, while the amount borrowed remained unchanged.

In another set of data – seasonally adjusted figures – the CML found that first time buyer and home mover lending increased by value and remained relatively unchanged by volume compared to March.

Buy-to-let and remortgage activity also stayed fairly similar in April from March.

The proportion of household income used to service capital and interest rates continued to sit near historic lows in April for both first time buyers and home movers, at 17.3% and 17.5% respectively, the report shows.

Affordability metrics for first time buyers saw the average loan size rise from £133,500 in March to £136,500 in April. The average household income also increased, from £40,000 to £40,700. This takes the income multiple to 3.57, from 3.53.

The average amount borrowed by home movers in April grew from £172,400 to £175,500 on a monthly basis, while the typical home mover household income rose between March and April, from £54,100 to £55,200. The income multiple went up to 3.35 as a result, from 3.34.

The Director General of the CML, Paul Smee, comments: “April comparisons are distorted by the weakness last year following the Stamp Duty changes, and the normal seasonal lending surge in March. But the seasonally adjusted picture shows lending relatively unchanged month-on-month across all lending segments.

“Heading into the summer months, we expect the market to remain slightly lopsided. Buy-to-let and home movers may well remain subdued, as they have been for the last six months. But both first time buyer and remortgage lending should maintain momentum on the coattails of the attractive deals available.”

Shaun Church, the Director of mortgage broker Private Finance, continues: “The mortgage market remained relatively subdued in April and, although lending volumes are higher than a year ago, this is in the context of an extremely quiet April 2016 following the changes to Stamp Duty. The figures for April are also skewed somewhat by a seasonal lending surge in March, which the CML acknowledges. One of most significant barriers to increased activity remains the lack of supply and, while this issue persists, the market will struggle to get into gear.

“However, it isn’t all bad news. Considering the huge economic and political uncertainty of the last 12 months, the market’s relative resilience is a testament to its strong foundations. This should continue to support a baseline of activity in the months ahead. Despite the lack of supply, demand from buyers will be supported by appetite for low mortgage rates and an expanding range of products.”

Home Sales Slump by a Third in Greater London in a Year

Published On: June 12, 2017 at 9:23 am

Author: Em Morley

Categories: Property News

Tags: Greater London,home sales,homebuyers,London,property market,property sales

Home sales slumped by almost a third in Greater London year-on-year in the spring, as changes to Stamp Duty rates, high property prices and Brexit uncertainty slowed the market.

The latest monthly index from estate agent Your Move shows that in the three months to the end of April, home sales in Greater London were down by 29% on the same period in 2016.

Much of the decrease followed a Government overhaul of Stamp Duty, which encouraged buy-to-let landlords and second home buyers to rush through deals in March 2016.

Home Sales Slump by a Third in Greater London in a Year

Data from HM Revenue & Customs (HMRC) shows a huge spike in sales during March last year, while mortgage lenders reported a surge in activity after the Stamp Duty surcharge came into force on 1^st April 2016.

But while a sharp fall from that peak may have been expected, home sales in the capital were down markedly when compared to 2015’s figures, Your Move has found, showing a decline of 19%.

The Your Move index, which is compiled by property consultancy Acadata and based on figures from Land Registry and other indices, shows a significant slowdown for home sales in London, the South East and East of England, but increases in other less expensive areas when compared to 2015.

In Wales, sales dropped by 7% annually, but were 13% higher over the two years. Meanwhile, in the North East, they had fallen by 4% on 2016, but were up by 10% on the previous year.

Within London, there was also a divide along house price lines, with home sales dropping least in Havering, Newham and Bexley – three of the four cheapest boroughs.

According to most reports, house prices across the country have remained stable, with some research finding that prices have dropped in recent months, while others show small increases.

Your Move’s index shows that England and Wales experienced a 0.3% increase in the average house price. It states that average prices rose to a new peak of £303,200, following a year-on-year rise of 4.8%.

Acadata reports that there was little sign that the General Election had dampened the market in May, but there had been a long-term shift in activity.

It says: “Many households are deterred from moving not just because there is a shortage of suitable options to buy, but also because of the costs of moving and not least the rate of Stamp Duty now being levied on higher value homes.”

The Managing Director of Your Move, Oliver Blake, comments on the index: “The market remains resilient and there’s encouraging activity in the north, but we need to urgently address the serious blockages in housebuilding holding back labour mobility and economic competitiveness in too many areas of the country.”

Russell Quirk, the Founder and CEO of online estate agent eMoov.co.uk, adds: “The latest industry data shows London property transactions are on the fall, with prices likely to follow or at least stagnate.

“This lack of buyer demand will have been largely fuelled by those waiting for some stability from last week’s vote. However, it is likely this market slowdown will now linger like a bad smell over the coming months as a result of the rather unsavoury outcome.”

Another industry expert has assessed what the General Election outcome will mean for the London property market: /election-result-london-property-market/

Demand for Specialist Residential Mortgages Increasing

Published On: June 8, 2017 at 9:25 am

Author: Em Morley

Categories: Finance News

Tags: homebuyers,mortgage market,mortgages,specialist mortgages

Demand for specialist residential mortgages increased in the first quarter (Q1) of 2017, according to the latest Financial Advisors Confidence Tracking (FACT) Index from Paragon Mortgages, which is based on interviews with 200 mortgage intermediaries.

Demand for Specialist Residential Mortgages Increasing

There was a rise in demand from both self-employed (24%) and complex income (17%) customers, suggesting an increased requirement for specialist residential mortgages and wider availability of products that meet the demands of underserved segments of the mortgage market.

Other customer types were largely unchanged in Q1, with high loan-to-value (LTV) lending at 15%, interest only at 13%, lending into retirement at 11%, low income at 9% and adverse credit at 7%.

The average number of mortgages introduced per intermediary office in Q1 was 20, down from 21 in the previous quarter and the third successive fall. Despite this more recent decline, the number of mortgages introduced has held between 20-25 for almost four years, maintaining a slow recovery tracked from 2009, when the number reached a record low of 14.

The index also shows a positive forecast from intermediaries, with the expected change in overall business over the next three months up for the first time since Q1 2015, reversing consecutive declines in each of the previous seven quarters.

Meanwhile, mortgage advisors expect to do 2% less buy-to-let mortgage business over the coming year. This, however, is up on the previous quarter and, following the largest ever decline seen in Q1 2016, the average now appears to be on a modest upward trend.

Asked about the importance of the Prudential Regulation Authority’s (PRA) new affordability rules in estimating the expected change in their level of buy-to-let mortgage business over the next 12 months, more advisors (85%) said that the changes had been at least quite important, up from 80% in the previous quarter, while just 10% said they were not important.

The Managing Director of Paragon Mortgages, John Heron, comments: “It’s encouraging to see increased demand and greater availability of specialist mortgages. Customers with complex incomes deserve access to a wider choice of mortgage products and to specialist underwriting that recognises their unique circumstances.”

A Fifth of Homeowners Receive Funding from the Bank of Mum and Dad for Home Improvements

Published On: May 9, 2017 at 9:12 am

Author: Em Morley

Categories: Property News

Tags: bank of mum and dad,home improvements,homebuyers,homeowners

A fifth of homeowners (18%) say that they rely on funding from the bank of mum and dad to help finance their home improvements, while 19% admit that their parents physically help them carry out DIY, according to the latest research by online home service marketplace Plentific.com.

A Fifth of Homeowners Receive Funding from the Bank of Mum and Dad for Home Improvements

Although it’s well known that the bank of mum and dad is increasingly being relied upon to help buyers purchase their own homes, it now appears that once these buyers become homeowners, they still rely on their parents to fund home improvements.

In the past, owning your own home as a young adult wasn’t the struggle that it is today. Many older parents will remember a time when they could buy a family home for a realistic sum that was relative to local salaries – at least in comparison to today’s standards.

Plentific’s study found that 26% of homebuyers across the UK now receive financial aid from the bank of mum and dad when purchasing a home. This figure increases dramatically for younger homeowners, with 58% of respondents aged under 34 admitting to receiving financial help from their parents.

Unsurprisingly, London ranked top of the table (59%) for the number of homebuyers receiving financial support from the bank of mum and dad when buying a property. With house prices increasing in the capital, it may seem sensible to buy a more affordable home that needs fixing up.

However, 48% of London homeowners admit that they also receive financial help from their parents to pay for home improvements.

Belfast came in second highest for homebuyers receiving financial aid from parents when purchasing a property, at 30%, with Brighton and Glasgow taking the bottom spot, with just 12%.

Homebuyers in Birmingham (16%), Southampton (18%) and Nottingham (19%) were the next lowest in the rankings, while those in Manchester (22%), Leeds (23%) and Bristol (25%) sat at the higher end of the table.

When looking at parents who provide financial support for home improvements, London (48%), Liverpool (31%) and Brighton (17%) topped the table.

The top locations for homeowners who received physical help with DIY from their parents were London (29%), Bristol (26%) and Sheffield (22%).

A spokesperson for Plentific, Stephen Jury, comments: “Our statistics really highlight the struggles young people face when buying or renovating a property. Whilst buying a cheaper property that needs work may seem like a good option, the number of young people receiving financial and physical help from their parents with renovation projects is quite alarming.”

Have you had to help your child either buy or renovate a home?

The Bank of Mum and Dad is Funding 23% More Purchases than Last Year

Published On: May 2, 2017 at 9:55 am

Author: Em Morley

Categories: Finance News

Tags: bank of mum and dad,first time buyers,homebuyers,mortgages

The bank of mum and dad has leant 23% more for their children’s property purchases over the past year, which highlights a symptom of the UK’s broken housing market, according to research released by Legal & General (L&G) and Cebr.

The rise in funding by the bank of mum and dad emphasises the supply-side crisis in the UK property market, and the critical need to build more homes across all tenures.

The research found that the bank of mum and dad will lend over £6.5 billion in 2017 – up from £5 billion in 2016, providing deposits for more than 298,000 mortgages and helping their children purchase homes worth £75 billion.

BThe Bank of Mum and Dad is Funding 23% More Purchases than Last Year

The bank of mum and dad is now on par with the ninth largest mortgage lender in the UK – up from ten last year – and will be involved in 26% of all property transactions that take place in the UK market this year.

In 2016, a third of prospective homeowners received financial support to buy a property from friends and family. In 2017, that figure jumps to almost half (42%). The amount of assistance has risen from an average of £17,500 in 2016 to £21,600 in 2017 – an increase of 23%.

The research found that millennials are the biggest recipients of bank of mum and dad funding, with 79% of funds going to people aged under 30-years-old.

The study believes that the bank of mum and dad will fund less purchases in 2017 than in 2016 – a 2.5% decrease – from 305,900 to 298,300, but only because overall housing market transaction volumes are down.

Of all bank of mum and dad funding, 76% is used for the deposit, while just 4% goes solely to mortgage payments.

Parents in the South West are the most generous, providing £30,000 of financial support per transaction on average – even more than London (£29,400). Welsh parents were found to give the least – an average of £12,500.

Good quality, well-connected housing is critical to supporting the UK’s economic position and fuelling growth. If people cannot find affordable housing options that support a good quality lifestyle in places that they want to live, they will go elsewhere and take their skills with them.

L&G is playing its part in housing creation, backing a fast growing pipeline of over 70,000 new homes over the next five to ten years and looking to help provide the UK’s population with high quality, affordable living at all stages in their life cycle. This includes investment in Build to Rent projects.

The Head of LGIM Real Assets, Bill Hughes, says: “The growing role of the bank of mum and dad in supporting young people getting onto the housing ladder signifies that the UK property market is simply not building enough homes. This is not sustainable and, as an industry, we need to work together to fix the housing market so that we are providing housing in areas which are well connected and where people want to live. The right approach is to regenerate not just residential housing, but the totality of the built environment of towns and cities in which the homes are built. Infrastructure, local economic growth and jobs are all key to creating thriving communities.”

James Lidgate, the Director of Housing at Legal & General Capital, also comments: “This research further highlights that, as an industry, we need to diversify the housing market in order to keep up with the UK’s housing demands. There is no single solution to housing – it is about all tenures and all forms of construction. Good quality, well-connected housing is critical to supporting the UK’s economic position and fuelling future growth.”