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The supply of new properties on the UK market has hit a record low. The typical estate agency branch had 37 properties available for sale during March, according to data published by the National Association of Estate Agents – the lowest figure ever recorded for the month. This has left buyers reluctant to come to market as they have few homes to choose from, with the number of prospective buyers registering with estate agents down by 25% in the last two years, the trade body added. The NAEA said the current political climate and economic uncertainty had caused confidence to drain from the market.
The Daily Telegraph (29/04/2019)
Mortgage loans hit a nine-month high in March, industry data from the UK Finance showed. High Street banks approved 39,980 mortgages in the month, up 6% on a year ago and 2% ahead of the previous month. The figures also show that remortgage approvals were 11.1% higher and approvals for other secured borrowing were 1.7% up year-on-year. Gross mortgage lending in March was £20bn, 0.5% lower than the same month in 2018. “It may well be that housing market activity has gained some support from recent improved consumer purchasing power and robust employment growth,” commented the EY Item Club’s Howard Archer.
The I (26/04/2019) Evening Standard (26/04/2019)
Recent research from Santander suggests that almost half of buyers would consider taking out a mortgage for a 40-year term in order to get on the property ladder. But this has prompted worry about whether lower repayments add up to more in the long term. While a longer mortgage means reduced monthly repayments, interest payments are significantly higher for long mortgages. There may also be less flexibility in moving products and providers, which may be necessary as over such a long term, household circumstances are likely to fluctuate considerably.
The Observer (28/04/2019)
One in six parents who remortgage their property give the money to their grown-up children with the average financial contribution of £9,050 per child. Analysis by MoneySupermarket found 34% of grownup children use the money to help buy their own home. When quizzed, 32% of parents said they would prefer to accumulate debt themselves, rather than create more money worries for their child.
The I (30/04/2019)
The Queen Elizabeth Olympic Park is to benefit from what Dr Paul Brickell, the London Legacy Development Corporation’s director of regeneration, describes as the “Bloomsbury effect” – a melange of business, creative and cultural activities bubbling up in the park ahead of the arrival in 2023 of East Bank. The £1.1bn waterside cultural quarter, set between the Olympic Stadium and Westfield Stratford City, will soon host outposts of the London College of Fashion, University College London, the BBC, Sadler’s Wells Theatre, the V&A and the American Smithsonian Institution. Dr Brickell, a molecular biologist and former Newham councillor, said: “Bloomsbury has a mix of cultural, scientific and education institutions, green spaces, beautiful homes and businesses. That’s the kind of mix we are creating”. Homebuyers wishing to be a part of the new community are spoilt for choice; one of the latest to become available is Chobham Manor, a joint venture between Taylor Wimpey and housing association L&Q. Three-bedroom apartments are available from £690,000, while four-bed town houses can be had from £860,000. Those seeking something smaller can choose from one- and two-bedroom apartments from £460,000 and £590,000 respectively.
Evening Standard (24/04/2019)
Buying a home instead of renting can potentially have huge cost savings in the long run. Analysis by mortgage broker Private Finance compared the average cost of buying and renting a £350,000 property on the same street in Brent Cross. Assuming rent rises of 2.5%, the renter will have paid £911,285 over a 40-year period. By contrast a buyer would have spent £574,300, assuming their mortgage rate stayed the same. However mortgage borrowers are likely to see their costs reduce over time, meaning the true figure would be even lower. Homeowners will also benefit from house price rises; assuming an annual growth rate of 1.7% over the 40 years, the buyer will be over £100,000 in profit.
The Daily Telegraph (19/04/2019)