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Analysis from Halifax shows that house prices have hit a record high despite rising at a slower rate than a year ago, hitting an average of £252,765. The report reveals a 5.7% year-on-year increase in the first quarter, down from the near-five year high of 7% recorded last year. On a quarterly basis, prices rose 0.3% in the first three months of the year, marking a slowdown on the 2.5% increase seen in Q4 2020. Reflecting on the figures, AJ Bell analyst Laith Khalaf was optimistic about the outlook for the sector, saying: “While there might be a few bumps along the way, particularly at the end of the stamp duty…the property market has proved itself to be unbelievably resilient.” He notes that much of this “comes down to the efforts the Government and the Bank of England have made to make mortgage borrowing incredibly easy and cheap”. |
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The total value of private property in the UK topped £6tn for the first time on record last year. In addition, mortgage-holders made an “unprecedented” £5.1bn worth of overpayments in the final quarter of 2020, the Equity Release Council said. But regular mortgage repayments remained 2% below pre-pandemic levels in the final quarter “as households who have been negatively impacted by the pandemic use relief measures such as mortgage holidays to defer their repayment obligations”. The average loan-to-value of property dropped to 24.6%, the lowest level since before 2007/8, and means the average UK property owner held equity of £189,549 alongside an average loan of £61,951 last year. The number of new equity release plans taken out rose 19% to 21,917 in the final half of 2020. The number of equity release products available rose to record highs, with a total of 488 products available by the end of 2020. |
First-time buyers now need an average deposit of £59,000 to get on the housing ladder - £12,000 more than this time last year, according to the Halifax. The lender compared average first-time buyer deposit sizes in the 12 months to February 2020 with the 12 months to February 2021. In London, the average deposit size being put down by people taking their first step on the property ladder had increased by more than £20,000, with buyers now needing £132,685. “We know that first-time buyers will benefit from steps that make a deposit more attainable and we're committed to lending £10bn to help people buy their first home this year,” commented Andrew Asaam, mortgages director at Halifax.
City AM (22/03/2021) Daily Mail (22/03/2021The Sun (22/03/2021)
Official figures from the ONS reveal that the average house price fell by £1,000 in January, from a record high the previous month. The average property value across the country in January stood at £249,000. However, the average house price was still £17,000 higher than in January 2020. UK average house prices increased by 7.5% over the year to January, compared with an 8% increase in December. Average house prices increased over the year in England to £267,000 (a 7.5% annual increase), in Wales to £179,000 (9.6%), in Scotland to £164,000 (6.9%) and in Northern Ireland to £148,000 (5.3%). The North West was the English region with the highest annual growth in average house prices, recording a 12% spike, while the West Midlands had the lowest growth of 4.7%. Prices in London rose 0.1% in January to reach £501,320, representing an annual rate of increase of 5.3%.
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City AM (24/03/2021) Daily Express (24/03/2021) Daily Mail (24/03/2021) Evening Standard (24/03/2021) The Independent (24/03/2021) The Times (24/03/2021) |
Nearly a third of homeowners whose finances have been hit by the pandemic say they are likely to move to their lender's higher standard variable rate rather than re-mortgage, according to research from Legal & General Mortgage Club. Mortgage borrowers hit hardest by the pandemic may find themselves paying out thousands more each year, because they believe the financial fallout has affected their ability to remortgage. “While the coronavirus crisis has undoubtedly affected people's finances in different ways, those who have seen their incomes drop will likely be finding this a particularly challenging time”, says Kevin Roberts, director at L&G. “It's vital they avoid falling onto a reversion rate and paying more, when there are other affordable options available.”
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Homeowners fear a mortgage holiday could impact their credit score |