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
UK Housing Market Update Do revisions to the National Accounts alter the housing market picture? This September, changes to how pensions are measured in the National Accounts will trigger a large upwards revision to the household saving ratio. But while that will make the long-term financial... 21st May 2014 · 1 min read
UK Housing Market Update Labour’s rent controls – more bark than bite As they stand, the proposals by the Labour party to introduce some form of rent control are pretty innocuous. More concerning is the precedent they may set for more drastic intervention in the future... 2nd May 2014 · 1 min read
UK Housing Market Update Are longer mortgage terms supporting higher house prices? In 2012, almost 30% of new mortgages were advanced with a term of 30 years or longer. By lowering monthly payments, that will have allowed lenders to increase loan-to-income ratios, which can then... 17th April 2014 · 1 min read
UK Housing Market Update Why is the Land Registry reporting slower house price growth? House price growth may be entering double-digit territory on the Nationwide measure, but that is certainly not the case according to the Land Registry. The difference may reflect the inclusion of cash... 21st March 2014 · 1 min read
UK Housing Market Update Help to Buy equity loans – what have they achieved? Help to Buy equity loans have proved very popular, but their direct impact on the housing market recovery has been overstated. The extension to the scheme will give housebuilders the confidence to... 19th March 2014 · 1 min read