Filtered by Subscriptions: UK Housing Use setting UK Housing
The Land Registry repeat sales index suggests that house price inflation may be levelling off in response to the sizeable drop in mortgage approvals seen since January. But it is too soon to be confident that these developments will last. … Land …
27th June 2014
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. … FPC takes (limited) action to cool the housing …
26th June 2014
The recent run of falling mortgage approvals for house purchase looks to be coming to an end, with the BBA reporting approvals were more or less unchanged in May. But with the FPC expected to act to prevent any further loosening in mortgage terms, the …
24th June 2014
The latest Credit Conditions survey suggests that lending activity in both the residential and commercial property sectors remains pretty well controlled. Admittedly, borrower demand is improving steadily. But lenders themselves generally continue to take …
23rd June 2014
The recent drop in mortgage approvals does not negate the need for the FPC to test its new macro-prudential powers . For one thing, we expect the drop in lending to be temporary. In addition, the re-emergence of higher risk mortgage lending in recent …
18th June 2014
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 that a rate rise is closer than expected may be of …
13th June 2014
The RICS survey provides further evidence that the surge in housing demand seen over the past year is losing momentum. But the housing market is not grinding to a halt, and the FPC will be mindful that loan-to-income ratios continue to rise. … RICS …
12th June 2014
The Help to Buy mortgage guarantee scheme has helped to almost double the share of mortgages advanced with a deposit of under 10%. And despite the gradual introduction of the MMR, the share of mortgages with a high income multiple has risen to a record …
10th June 2014
The surge in pent up housing demand released over the past year looks to be losing steam, and the disruption caused by the MMR has brought a, probably temporary, halt to the growth in mortgage lending. But with no sign as yet of an easing in supply …
5th June 2014
The very large rise in house prices reported by the Halifax in May comes after two months of declines, and underlying measures of growth are stable. Even so, expectations of house price gains are still elevated, and the FPC should act to prevent any …
The Nationwide reported a 0.7% m/m rise in house prices in May. This reflects the fact that, despite the recent dip in mortgage approvals, housing demand is still outpacing the supply of homes on the market. … Nationwide House Prices (May …
3rd June 2014
According to the Bank of England mortgage approvals fell again in April, and are now 17% below their peak at the start of the year. Some of the decline is likely to reverse once the disruption caused by the MMR has passed, but it is also an indication …
2nd June 2014
The Land Registry figures show that prices in London continue to boom, with prices up £17,645 during April alone. While the Help to Buy mortgage guarantee scheme is not directly responsible for the rise, the case for scrapping it is growing. … Land …
30th May 2014
Although the revival in housing market activity may lose some pace as a result of new regulations and rising mortgage rates, we doubt that this will derail the recovery in consumer spending. … Recovery built on solid …
29th May 2014
The British Bankers’ Association reported that mortgage approvals dropped once again in April, and are now around 13% down on their peak in January. As such the data do little to support the idea of a market that is out of control. … BBA Mortgage Lending …
27th May 2014
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 regime. But with applications still below pre-crisis …
23rd May 2014
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 position of households appear healthier, it will do nothing …
21st May 2014
The strong rise in housing starts in April will ease fears that the recent soft patch in housing market activity will turn into an extended slowdown. … Housing Starts …
16th May 2014
Private housing starts have made a very strong start to the year. Unfortunately, various constraints suggest that this pace of growth will be difficult to sustain. … Housebuilding (Q1 …
15th May 2014
Advances for house purchase to first-time buyers and buy-to-let investors are growing at a similar robust pace. But first-time buyers are entering the market by borrowing record amounts in comparison to their income, which is likely to be ringing alarm …
There were further indications that housing market activity is at least no longer accelerating in April, with mortgage approvals dropping for the second consecutive month and some measures of house price inflation easing. But that is certainly not the …
14th May 2014
The FPC has a number of policy tools at its disposal should it decide it needs to cool the housing market. Provided it acts with sufficient conviction, there is every chance that the new tools will prove effective. Action to curb loan-to-income ratios …
12th May 2014
The changes to the pension system due to come into effect next year will impact the economy in a variety of ways. But while it may lead to some rise in the demand for homes as retirees search for alternatives to an annuity, we doubt the increase will be …
9th May 2014
Halifax reported that house prices fell marginally for the second consecutive month in April. However, the RICS survey offered little encouragement that these falls are about to usher in a period of flat house prices. … Halifax House Prices & RICS …
8th May 2014
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, which could threaten the longer term supply and …
2nd May 2014
The Nationwide reported a robust rise in house prices in April, pushing the annual rate into double-digits for the first time in almost four years. But mortgage approvals fell again in March, which suggests price gains are set to moderate. … Nationwide …
1st May 2014
The Land Registry reported a surprise fall in house prices in March. That provides further evidence that, while the housing market recovery will continue, there is little sign it is turning into a runaway boom. … Land Registry Repeat Sales Index …
30th April 2014
The number of mortgages approved by the major banks dropped for the second consecutive month in March. The data therefore provide further evidence that the housing market recovery may be coming off the boil. … BBA Mortgage Lending …
25th April 2014
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 support a higher house price-to-earnings ratio. But this …
17th April 2014
House prices are now rising across the country but, London aside, they are not in boom territory. And with some early indications that demand is at least no longer accelerating, we expect prices to rise at around their current monthly rate for the rest of …
15th April 2014
In this edition of our UK Quarterly Review , we take a close look at the outlook for earnings. After enduring the biggest decline in real wages since the 1920s, are workers finally set to see the benefits of the economic recovery in their pay packets? Or …
14th April 2014
The March RICS housing survey indicates that housing market activity continues to grow at a steady pace. A reluctance to put homes up for sale is putting upwards pressure on house prices, but we expect the supply situation will begin to ease over the next …
10th April 2014
The housing market recovery looks to be losing a little steam, with a number of indicators dropping back over the past month. While that may partly reflect the poor weather, it could also be a sign that the pent-up demand that has been released in recent …
8th April 2014
Halifax reported the largest monthly fall in house prices in almost two years in March. But that only partly reversed last month’s jump and on a more stable measure prices, while not accelerating, are continuing to make steady gains. … Halifax House …
4th April 2014
In both the residential and commercial property sectors, credit supply and demand are rising. However, those looking to secure a mortgage may find things more difficult over the next few months, with lenders planning to tighten credit scoring criteria and …
3rd April 2014
According to the Nationwide, the growth in national house prices eased a touch in March. But London doesn’t appear to have got the memo, and annual growth in the capital reached an 11-year high in the first quarter of the year. … Nationwide House Prices …
2nd April 2014
Although likely to be temporary, today’s sharp fall in mortgage approvals should go some way towards calming fears that the housing market recovery is rapidly spiralling out of control. … Mortgage Lending …
31st March 2014
Rising at just over 5% y/y, the Land Registry house price index shows a rather less frothy picture than the main lenders' indices. It also emphasises how big a role London is playing in driving up the national average. … Land Registry Repeat Sales Index …
28th March 2014
The slight decline in mortgage approvals for house purchase in February is almost certainly a blip, and doesn’t herald the end of the revival in mortgage lending. But it does suggest mortgage lending is not set to accelerate out of control, and banks are …
25th March 2014
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 buyers within the Land Registry index, who currently …
21st March 2014
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 boost starts, but their shareholders will also be cheering …
19th March 2014
The RICS housing market survey provides some hope that housing demand is not running out of control. But there is still an acute lack of homes available for sale, and that will put further upwards pressure on house prices. … RICS Residential Market …
13th March 2014
First-time buyers continue to drive the recovery in mortgage lending, and have done so without any rise in the share of mortgages requiring a small deposit. So far, it seems as though the Help to Buy guarantee scheme has replaced, rather than …
11th March 2014
Recent months have seen a resurgence in first-time buyers, desperate to buy before house prices are pushed even further out of reach. But this has not been matched by a rise in the number of homes put up for sale. We suspect that past falls in house …
10th March 2014
Housing market activity is rising on the back of the broader economic recovery, record low interest rates and Government interventions. While there is always the risk that the house price boom evident in some parts of central London could spread to the …
7th March 2014
The Halifax reported that house prices increased in February by more than they did over the whole of 2012. But on more stable measures price gains are not accelerating towards rates consistent with a country-wide housing boom. … Halifax House Prices …
6th March 2014
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 use of the initial scheme before it closed at the end of …
5th March 2014
Mortgage lending got off to a strong start in 2014, with another robust rise in the number of mortgages approved for house purchase. Secured lending will see further gains over the year, helped by the Funding for Lending scheme. But the introduction of …
3rd March 2014
The Nationwide and Land Registry report that house prices are continuing to grow steadily. Prices are now only 3% off their pre-crisis high according to the Nationwide, and will pass that benchmark by June at current growth rates. … Nationwide (Feb.) & …
28th February 2014
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 interest rate stress test should at least prevent …
25th February 2014
