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
UK Housing Market Update The Funding for Lending Scheme can still support mortgage lending The restrictions placed on the extension to the FLS to slow the expansion of mortgage lending will have a very limited direct impact. Lenders who did not qualify for the extension simply made heavy... 5th March 2014 · 1 min read
UK Housing Market Update What impact will the Mortgage Market Review have on lending? The weight of evidence suggests that most mortgage lenders are already implementing the Mortgage Market Review regulations, so we doubt mortgage lending will see a sharp drop come 26th April. But the... 25th February 2014 · 1 min read
UK Housing Market Update How quickly can housebuilding return to pre-crisis levels? Housing starts are growing rapidly on the back of an improving economy and the Help to Buy scheme. But with builders already facing material and labour shortages, and the demand for new homes partly... 20th February 2014 · 1 min read
UK Housing Market Update What measure of earnings should be compared to house prices? If the share of homes bought using the joint income of a two-earner household has trended up over time, it is possible that a measure of the house price-to earnings ratio that uses average individual... 17th February 2014 · 1 min read
UK Housing Market Update Are we heading for another mortgage credit boom? The growth in mortgage lending seen over the past year will continue into 2014, but we doubt it will develop into a credit boom. Not only are banks unlikely to return to the type of lending practices... 21st January 2014 · 1 min read
UK Housing Market Update Will market conditions loosen in the spring? Current concerns about the pace of house price gains could prove short-lived if a sharp rise in sales instructions helps to rebalance the market in the spring. But with rising house price expectations... 11th December 2013 · 1 min read
UK Housing Market Update Could capital gains tax changes help boost short-term housing supply? Yesterday’s announcement that foreign owners of property will be liable for CGT from April 2015 is unlikely to encourage those owners to sell up, as it will only apply to future gains. But the move to... 6th December 2013 · 1 min read
UK Housing Market Update Bank of England starts to take away the punch bowl The Bank of England has started the slow process of withdrawing support to the mortgage market. In our view, the acceleration of the review into the introduction of an industry-wide leverage ratio is... 2nd December 2013 · 1 min read
UK Economics Update Bank of England takes action to cool housing market Alongside the release of its Financial Stability Report, the Bank of England has unveiled new measures to blunt the incentives for banks to make new mortgage loans. While these initiatives may do... 28th November 2013 · 1 min read
UK Housing Market Update How significant is October's jump in asking prices? Despite some of yesterday's headlines, London aside, October's jump in asking prices was not exceptional. But the data highlight the risk that, even if Help to Buy fails to boost transactions, it may... 22nd October 2013 · 1 min read
UK Housing Market Update Is the ratio of mortgage debt to income really declining? The authorities are taking comfort from the fall in mortgage debt as a share of disposable income in recent years. But that primarily reflects a rise in benefit payments and net interest income, as... 18th October 2013 · 1 min read
