Posts with tag: Nationwide

Government announces three-month mortgage payment holiday

Published On: March 19, 2020 at 10:28 am

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Categories: Finance News,Landlord News

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Government announces three-month mortgage payment holiday

The Government is to offer coronavirus-affected mortgage holders a three month payment holiday.

In a joint statement, the RLA and the NLA said: “Our priority is to ensure that tenants are secure in their homes during this crisis. The three-month buy-to-let mortgage payment holiday will take a lot of pressure off landlords enabling them to be as flexible as possible with tenants facing difficulties with their rent payments.

“No responsible landlord will be considering evicting tenants because of difficulties arising from the current situation. There does need to be some flexibility though such as with dealing with a tenant engaging in anti-social behaviour.

“This could cause misery for fellow tenants or neighbours especially when they are going to be spending a lot of time together.

“We would like to see further measures taken including pausing the final phase of restricting mortgage interest relief to the basic rate of income tax due in April.

“In addition, we need to do all we can to prevent the spread of the coronavirus. There should be national guidelines for local authorities to suspend routine inspections of properties and a temporary halt on enforcement action where landlords are unable to fulfill certain required obligations because of the health risk posed to them, tenants and contractors.”

Henry Jordan, Director of Mortgages for Nationwide Building Society, comments: “As the UK’s second-largest buy-to-let mortgage provider we feel it is important to extend protection to landlords and their tenants during this uncertain period.

“We have extended mortgage payment holidays to include rental properties so that landlords with tenants who are unable to meet rental payments because of coronavirus are protected as much as possible.

“These payment breaks will be able to be arranged via The Mortgage Works – Nationwide’s buy-to-let arm. We would encourage tenants to speak to their landlords if they are impacted or worried about coronavirus to ensure that steps can be taken to support them at this time.”

Franz Doerr, founder and CEO of flatfair, comments: “It is pleasing to see that the government is taking measures to ensure landlords are protected during this crisis with a three month mortgage holiday, but support must also be offered to tenants as well, who may very well be unable to make their payments in the months ahead.

“The impacts of Covid 19 are just becoming visible and it is crucial that everyone pulls together to help us all come through this.”

Chris Sykes, mortgage consultant at Private Finance, the mortgage broker, comments: “While many holiday plans are in disarray, mortgage borrowers will welcome a break from monthly repayments in the current climate.

“The biggest beneficiaries are likely to be customers who are self-employed or have little saved to help them through these challenging times. A mortgage holiday will ease concerns about loss of earnings if people are isolated for any period or if their working hours are reduced due to business closures.

“This flexible relief is an intelligent move for both lenders and borrowers. Lenders will reduce the risk of having ‘bad debt’ on their books if customers miss payments without taking a mortgage holiday, which can reflect poorly on their business and make it harder to raise finance in future.

“Customers can rest easier by avoiding the danger that a missed payment creates a blemish on their credit profile which lasts longer than the current pandemic and limits their borrowing options for three years or more.

“Customers need to be mindful that pre-emptive action will be key to making the most of a mortgage holiday. It will be important to agree deferred payments with their lender in advance, so they are not recorded as missed.

Andy Foote, director at SevenCapital comments: “This evening’s (18th March) measures announced by the Government will be welcomed by landlords and tenants alike. We heard measures yesterday designed to protect landlords through mortgage relief over a period of three months.

“It’s extremely good news, and I’m sure there will be thousands who will breathe a huge sigh of relief, to hear that any renters affected, who as a result are unable to pay their rent during this period will also be protected.

“It’s also highly encouraging to see that this legislation has been extended to both the social and private rented sector, where there are many landlords and tenants who may be impacted by these events and unsure about their payments in this unprecedented situation.

“During a tough period of time, as the Prime Minister himself said, “it would not be right for people to be penalised as a direct result of following government advice”.

“The information that appears to be missing, however, with regards to mortgage relief, is whether landlords who run their properties through limited companies will be protected under this legislation or whether there are alternate business measures being put in place that will cover this.

“We await further developments over the next few days.”

Communication and relationships key for private rental sector

Published On: December 2, 2019 at 10:09 am

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Categories: Lettings News

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Communication and relationships key for improved private rental sector

An industry roundtable recently discussed the needs of tenants and landlords in the private rental sector (PRS). The main outcome was that organisations need to work more closely to bring about meaningful change.

The roundtable was attended by representatives across the PRS including Nationwide Building Society, Fair Housing Futures, Countrywide, ARLA PropertyMark, Connells Group, NLA, RLA, Generation Rent, and the Nationwide Foundation.

They discussed underlying issues in the PRS and how the landlord-tenant relationship could be improved. It was agreed that most importantly there needs to be a level of trust between landlords and their tenants.

The group felt tenants should be able to report issues without fear of eviction, and that landlords are confident their properties are being looked after. All agreed that the following steps could help achieve this:

  • Make tenancy documents easy to understand: Contracts should be easily readable, translatable and clearly and accessibly highlight the rights and responsibilities of tenants and landlords.
  • Role of lettings agents: More should be done to ensure that lettings agents understand and facilitate the necessary regulation at play in the rental process. It was agreed that full mandatory government regulation of lettings agents is the quickest and most effective method to eliminate unprofessional, unqualified and unethical agents from the property sector.
  • Improved, simplified sources of information: There should be a single point of contact for landlords and tenants where they can seek qualified, straightforward advice regarding their respective rights and responsibilities. Giving local authorities the resources to employ more dedicated Tenancy Support Officers was discussed as was the perceived benefits of a single information portal, replacing the current system where information for both parties is scattered across different Government and sector websites, where there is no standard benchmark of quality.
  • A review of insurance products on offer in the sector: There is potentially scope for more use of insurance in the sector, particularly landlords’ insurance as a route to mitigating risk and building trust. Insurance products available to landlords should also be reviewed to ensure they do not contain restrictions such as “no DSS clauses”, and to ensure that they do not inadvertently trigger unnecessary evictions.

A number of issues were discussed which were not uniformly supported but were discussed in a rounded way. These included:

  • A change in language: The current language used to discuss the private rental sector is outdated and has the potential to encourage stigma. Some took the view that the use of new terms like ‘home provider’ and ‘resident’ could encourage respectful relationship-building between both parties.
  • More effective regulation: Some attendees felt strongly that respect and trust could not be developed between landlord and tenant without a robust regulatory framework offering tenants protection from unfair eviction, and potentially recriminatory rent increases.
  • Scrapping Section 21: Some present contested that Section 21 should not be scrapped and that doing so would not necessarily resolve any of the outstanding issues within the sector, including property standards and tenancy length issues. However, others present argued in favour of scrapping Section 21 ‘no fault’ evictions in order to give tenants increased security in their homes. Nationwide Building Society, Crisis, and Generation Rent all support scrapping Section 21, with Nationwide requested it is abandoned in tandem with the creation of a specialised housing court.

Paul Wootton, Nationwide Building Society’s Director of Home Propositions, said: “It was great to convene such a positive and collaborative discussion with people representing different parts of the sector. 

“I feel very optimistic about how we can take this conversation forward, and work to ensure that the private rented sector works for everyone. Nationwide members are both renters and landlords, and we’re keen to ensure that both parties get a fair deal from the sector.”

Annual house price growth remains subdued in November

Published On: November 29, 2019 at 10:06 am

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Categories: Property News

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annual house price growth

Nationwide’s House Price Index for November 2019 has been released, highlighting that house price growth has been marginally higher.

The report states:

  • Annual house price growth remained subdued at 0.8% 
  • 0.5% rise month-on-month, after taking account of seasonal factors

Robert Gardner, Nationwide’s Chief Economist, comments: “Indicators of UK economic activity have been fairly volatile in recent quarters, but the underlying pace of growth appears to have slowed as a result of weaker global growth and an intensification of Brexit uncertainty. 

“To date, the slowdown has largely centred on business investment, while household spending has been more resilient.”

Gardner also shares his thoughts on the impact the election might have on the housing market within the report: “With the UK general election due in a few week’s time, we have analysed house price movements in the months around previous elections, and also the 2016 EU referendum. 

“It appears that housing market trends have not traditionally been impacted around the time of general elections. Rightly or wrongly, for most home buyers, elections are not foremost in their minds while buying or selling their home.” 

David Westgate, Group Chief Executive at Andrews Property Group, has also commented: “On an annual basis, prices remain below 1% but growth of 0.5% in November shows the market still has some fight in it.

“Increasingly, it feels like the market is starting to find a bit of a rhythm, and a strong majority for the Conservatives could add even more momentum.

“A lot of people are fed up with the noise of politics and are getting on with their lives. Exceptionally low mortgage rates and more affordable prices are making that decision a bit easier. 

“Some sellers are still proving stubborn on price but overall there is a bit more realism than there was earlier in the year.

“The one thing that’s still thin on the ground, perhaps no surprise in the current climate, is the aspirational mover. 

“A decisive win for Boris Johnson could see the market rebound sharply, but if we end up with more political deadlock the market could continue to idle along for another year.”

Nationwide announces new measures to combat unfair leasehold terms

Published On: May 4, 2017 at 12:06 pm

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Categories: Finance News

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The Nationwide Building Society has announced that it is to launch a new valuation policy for new build leasehold properties. This is aimed a protecting its mortgage members for suspect leasehold terms and spiralling ground rents.

As such, the Nationwide is the first large lender to impose more transparent lending conditions on these sorts of property.

Valuations

For valuation purposes for all new mortgage applications on new builds received from 11th May 2017, the minimum acceptable lease term will be 125 years for flats and 250 years for houses.

What’s more, the maximum acceptable starting ground rent on all new build leasehold properties will be limited to 0.1% of the overall property value.

Terms of the agreement state that the ground rent must be reasonable at all times during the lease. Doubling of rent every five, ten or fifteen years will not be permitted without good reason.

Unfair leasehold terms and increasing rents have recently seen much media attention and political criticism.

Nationwide announces new measures to combat unfair leasehold terms

Nationwide announces new measures to combat unfair leasehold terms

Safeguarding

Robert Stevens, Nationwide’s Head of Property Risk, Data and Strategy noted: ‘As a mutual building society that looks to protect its members, we have decided to make changes to the way we value new build properties on a leasehold basis. We are doing this to address the practice of using leasehold tenure where this is unnecessary, particularly for new build houses, and to ensure that onerous leasehold terms, including ground rents, are properly considered and controlled in order to safeguard our mortgage members.’[1]

‘Nationwide is taking a proactive, leading position on this issue to address a significant risk facing our members and to challenge what we believe to be poor practice in the new build market,’ he added.[1]

[1] http://www.propertyreporter.co.uk/property/nationwide-announce-new-measures-to-combat-unfair-leasehold-practices.html

 

UK house price growth falls in March

Published On: March 31, 2017 at 9:04 am

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Categories: Property News

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The latest report from Nationwide shows that house price growth in the UK fell in March by 0.3%, with annual growth also falling by 3.5%. This took the average price to £207,308.

In addition, the investigation shows that the gap between regional price growth is closing, with this now at its narrowest since 1978.

Rise and Falls

During the first three months of 2017, six regions saw property prices rise, six saw falls and there was no alteration in the East Midlands.

Robert Gardner, Nationwide’s Chief Economist, noted: ‘The spread in the annual rate of change between the weakest and strongest performing regions was at its narrowest since 1978 at 6.8%, the second smallest gap on record.’[1]

‘The South of England continued to see slightly stronger price growth than the North of England, but there was a further narrowing in the differential. Northern Ireland saw a slight pickup in annual house price growth, while conditions remained relatively subdued in Scotland and Wales,’ he continued.[1]

Quarterly Figures

Quarterly, overall year-on-year prices rose by 4.1%. By country, rises were:

  • England 4.7%
  • Northern Ireland 3.8%
  • Scotland 2.9%
  • Wales 1.2%

UK house price growth falls in March

UK house price growth falls in March

By region, prices in the South West, Outer South East, Outer Metropolitan, London and East Anglia all rose by 5% year-on-year.

Despite regional growth rates beginning to converge, there is still disparity in price levels. This becomes more profound when looking at prices relative to their 2007 peak. Prices in London for example are almost 60% above their 2007 levels, while those in the North, Yorkshire and Humberside and the North West are lower than their 2007 peaks.

Experts feel that the March dip in prices is not a trend, with monthly figures tending to be volatile. In addition, the fall is not thought to be connected with the trigger of Article 50 this week.

Muddle

Jonathan Hopper, managing director of Garrington Property Finders, observed: ‘The market has become a muddled mix of extremes, with double digit reductions going on at one end of the spectrum and gazumping at the other. So it would be overly melodramatic to view the Nationwide’s latest data as a turning point. In reality, average house prices have been meandering for several months against the volatile and uncertain economic backdrop.’[1]

‘Buyer intent remains strong in many parts of the UK, but buyers have become acutely price sensitive. No one wants to buy a home only to realise they could have got it cheaper if they had waited so on the front line, prospective buyers are scrutinising prices harder than ever,’ he added.[1]

Russell Quirk, chief executive officer of eMoov, noted it is unusual to see a dip in the spring market. He went on to say: ‘Although an air of uncertainty on the run up to Wednesday’s formal process may have left a few buyers on the fence, it is unlikely to have had any direct impact itself. Although the market remains healthy which is great news for existing homeowners, those facing the sizable task of climbing the UK ladder are opting to concede and rent. Not just those at the first rung, but seemingly the third and fourth as well.’[1]

[1] http://www.propertywire.com/news/uk/march-dip-uk-house-prices-seen-blip-not-trend/

Mortgage lending at the Nationwide rises by 20%

Published On: May 24, 2016 at 1:09 pm

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Categories: Finance News

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Nationwide Building Society has today announced that their yearly mortgage  lending figures are at their greatest level since the financial crisis.

The full yearly results indicate that there has been a 23% increase in statutory profit, with this total standing at £1.279bn.

Mortgage increases

Further figures suggest that gross mortgage lending increased by 20% to hit £32.6bn. Net lending rose by 28% rise to £9.1bn, bringing their market share to 21.4%.

During the past twelve months, the Nationwide has lent to 57,200 first-time buyers, accounting for one-sixth of all cases.

What’s more, the Nationwide increased their maximum limits for mortgages from 75 to 85, giving it the highest age threshold of any lender on the high street.

Mortgage lending at the Nationwide rises

Mortgage lending at the Nationwide rises

Testament

Nationwide chairman, David Roberts, said, ‘these results are a testament to always putting our members first. I would like to thank Graham Beale for his huge contribution to the Society which has left the business in great shape, prospering as a modern mutual and I wish him well for the future.’[1]

‘I am delighted to welcome Joe Garner as Nationwide’s new Chief Executive. Joe stood out as someone with a deep understanding of the sector, who has championed customer interest throughout his career and who will set the strategic direction for the Society and our people.’[1]

Mr Garner, newly appointed chief executive of the firm, added, ‘it’s a credit to the management and people of the Society that they have consistently understood this and organised Nationwide around this principle. As a result, last year we lent more money to help people into a home of their own than since before the financial crisis in 2007.’[1]

[1] http://www.propertyreporter.co.uk/finance/gross-mortgage-lending-at-nationwide-soars-by-20.html