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Homeowners who take advantage of the extended mortgage holiday scheme should have their credit files marked, the Nationwide has said. Lenders look at somebody's credit rating when deciding whether to agree to a fresh loan or contract and the interest rate they will charge. Joe Garner, chief executive of the Nationwide Building Society, said an extension to the mortgage break may signal a borrower was "struggling". He commented as the UK's largest mutual announced a plunge in profits. Its statutory pre-tax profit fell to £466m in the year to April, compared with £833m the previous year. The building society said it had already faced pressure on its profits before it took a £101m hit as a direct result of coronavirus.
BBC News (29/05/2020) The Daily Telegraph (29/05/2020)
The government has agreed to quash planning permission for Northern & Shell’s 1,524-home Westferry Printworks scheme from Northern & Shell. Tower Hamlets, the planning authority for the scheme, launched a legal case against the government on the basis that the date of the decision allowed the developer to avoid between £30m and £50m in additional planning obligations which would have applied if it had been approved the following day. The charges would have applied as Tower Hamlets was due to bring in a new Community Infrastructure Levy charging schedule. The government has now allowed the decision to be quashed following a request by Tower Hamlets as part of the legal proceedings that it disclose correspondence between the government and the developer over the decision.
Building (27/05/2020)
House prices are predicted to drop for the first time since September as a consequence of COVID-19, according to Nationwide. The lender is expected to say this week that house prices fell by 1% this month, compared to a 0.7% increase in April. Economists add that annual house price growth for April, as measured by the Nationwide House Price Index, is likely to come in at 2.8%. House prices had been surging before the coronavirus lockdown, which effectively shut down the market by stopping people going to viewings.
Sunday Express (24/05/2020)
The government has confirmed that homeowners who are still unable to pay their mortgage because of the COVID-19 crisis will now be eligible for a further three month repayment holiday. An initial three month mortgage holiday scheme was set up in March and ministers have now decided to extend it. The deadline for applying for an initial repayment break is also being extended to October 31. However, where people can afford to restart payments they are being encouraged to do so, even if it is not for the full normal monthly amount. “We’re doing everything we can to help people with their finances at this difficult time, and that includes making sure people get the support they need with their mortgages,” commented John Glen, the Economic Secretary to the Treasury. Meanwhile, experts warn that those who opt for the full six-month break could pay £948 in extra interest over the term of their loan.
Daily Mail (22/05/2020) The Guardian, (22/05/2020) The Times (22/05/2020)
Graeme Craig, director of commercial development at Transport for London, talks about how TfL is "passionately committed" to homes development. TfL has a long-term development pipeline to deliver 10,000 homes, of which around half will be affordable. There are also some 3,000 homes set to be created for the rental market. Mr Craig said: “The COVID-19 crisis has had a profound effect on construction… We are working to understand [its] impact on the planning system and how boroughs can continue to ensure there is public scrutiny of new development schemes, and will be working with the Mayor, developers and councils to make sure that we can build the homes our city needs in a safe, responsible and transparent way.”
Evening Standard (16/05/2020)
Data from the Office for National Statistics reveal that the average UK house price increased 2.1% in the year to March, an increase from 2% in February, to an average of £232,000, while London house prices were up 4.7%. At a regional level, average house prices in England rose 2.2% to £248,000 in the year to March, while Wales saw a 1.1% increase to £162,000, Scotland saw prices rise 1.5% to £152,000 and Northern Ireland showed a 3.8% increase to £141,000. Yorkshire and the Humber was the worst performing region, with prices down 1%. Lucy Pendleton, property expert at James Pendleton, commented: “Enquiry levels are off the chart at the moment and we are gradually bringing back more staff… Only time will tell how we can convert those enquiries and how that translates into all-important prices for vendors.”
City AM (20/05/2020) The Times (20/05/2020) The I (20/05/2020) Daily Mail (20/05/2020)