UK Housing Market Update Stamp duty reform will boost house prices by 3% to 5% in 2015 We estimate that the direct impact of the reform to stamp duty will boost house prices by a relativelyminor 0.6%. But the indirect effect of reducing upfront costs and boosting housing market... 17th December 2014 · 1 min read
UK Housing Market Update Measuring the affordability of buying a home The share of income a new buyer spends on their mortgage is an obvious way to measure housing affordability. But whether it is calculated using average house prices and incomes, or mortgage lender... 8th December 2014 · 1 min read
UK Housing Market Update Chancellor announces major changes to Stamp Duty Land Tax Reforming Stamp Duty Land Tax from a slab to a graduated system is certainly an improvement, and should give a short-term boost to housing transactions. But it will also give another boost to... 3rd December 2014 · 1 min read
UK Housing Market Update Will the shortage of homes for sale persist? According to Rightmove, the number of homes that estate agents had for sale in November was at a record low for this time of year. However, with new home completions expected to show the first signs... 18th November 2014 · 1 min read
UK Housing Market Update What will Labour’s mansion tax mean for prime property values? Labour have now confirmed that their version of the mansion tax would be based around price bands, with homes valued at between £2m and £3m having to pay a flat rate charge of £3,000 per year. In... 22nd October 2014 · 1 min read
UK Housing Market Update Financial Policy Committee sets out new powers over mortgage lending The FPC has requested additional powers over loan-to-value and debt-to-income ratios, which will include buy-to-let lending. But with the housing market now cooling, and limits on high loan-to-income... 2nd October 2014 · 1 min read
UK Housing Market Update Mortgage arrears return to pre-crisis rates – but will they stay there? Mortgage arrears have returned to pre-crisis rates despite six years of falling real earnings. Instead the improvement is largely down to record low interest rates. All else equal, that suggests... 19th September 2014 · 1 min read
UK Housing Market Update Will the demand for new homes continue to cool? After growing at a rapid pace for 16 months, growth in demand for new homes has eased back sharply. But that appears to be driven primarily by a shortage of homes actually up for sale – if builders... 16th September 2014 · 1 min read
UK Housing Market Update How much of London’s boom can be explained by prime markets? The surge in London house prices in recent years is often largely attributed to the relative strength of prime property, which itself is usually seen as the latest stage of a long standing trend... 20th August 2014 · 1 min read
UK Housing Market Update Why has remortgaging activity not recovered? Despite most remortgages not being subject to the MMR regulations, remortgaging activity is still very subdued. It is a lack of demand for remortgages that is holding back the market, and that will... 13th August 2014 · 1 min read
UK Housing Market Update To what extent is the MMR responsible for the dip in mortgage lending? Housing market activity was already slowing prior to the introduction of the MMR. However evidence from the buy-to-let market suggests that the disruption to banks’ lending process turned an expected... 30th July 2014 · 1 min read
UK Housing Market Update Will buy-to-let landlords selling up cause a fall in house prices? A recent survey of letting agents reported that the share of landlords planning to sell properties has risen to a seven-year high. That could be a sign that prices have peaked. But with overall... 25th July 2014 · 1 min read
UK Housing Market Update Rent data cast doubt on the scale of the housing supply crisis Against the backdrop of a significant housing shortage, we would expect the cost of shelter to be a high and increasing burden on household budgets. But rent and income data show that this is not the... 4th July 2014 · 1 min read
UK Housing Market Update FPC takes (limited) action to cool the housing market The FPC has taken action to rein in a possible future house price boom, but appears entirely relaxed about developments to date. Time will tell, but we think that is rather short-sighted. 26th June 2014 · 1 min read
UK Housing Market Update Chancellor gives the Financial Policy Committee more powers While not groundbreaking, the new powers granted to the FPC strengthens their hand and could be a sign that greater regulation of the buy-to-let market is around the corner. That said, Carney’s hint... 13th June 2014 · 1 min read
UK Housing Market Update Has the National Planning Policy Framework cut planning constraints? Alongside the rise in housing starts, the number of residential planning applications decided and the share approved have also edged up. That may partly be due to the introduction of a new planning... 23rd May 2014 · 1 min read
