Filtered by Subscriptions: UK Housing Use setting UK Housing
The latest RICS survey shows that housing market conditions are continuing to tighten, as expectations of another house price boom - fanned by Government schemes - keeps housing demand high, but the supply of homes for sale low. … RICS Residential …
12th November 2013
By bringing forward the launch of the Help to Buy guarantee scheme, the Government has given a further boost to expectations that house prices must rise. That has led to very tight market conditions, and sellers have taken the opportunity to boost their …
7th November 2013
While real pay looks set to continue to fall until mid-2014, rising wealth, further modest gains in employment, income tax cuts and looser credit conditions should all help to sustain the recovery in consumer spending in the meantime. … Spending …
Halifax reported another strong rise in house prices in October. Widespread expectations that house prices will rise in the future, fanned by ill-conceived Government interventions, have led to a surge in buyer enquiries. And with the number of homes for …
6th November 2013
House price gains gathered pace in October, with another strong rise over the month. The risk that these gains trigger a self-fulfilling house price boom in more areas of the country is growing, but is not yet a foregone conclusion. … Nationwide House …
31st October 2013
The number of mortgage approvals for house purchase jumped again in September, as banks recycle a steady rise in mortgage repayments to new borrowers. While still historically low, 2013 will see the highest number of mortgage approvals since the onset of …
29th October 2013
With a hefty 1.5% rise in house prices during September, the Land Registry is now in agreement with other measures that prices are coming under continued upwards pressure. But, parts of central London aside, talk of a house price boom is overdone. … …
28th October 2013
According to the BBA, mortgage approvals in September jumped by the largest amount in a single month since the end of 2008. Even so, net mortgage lending was once again negative, and banks appear to have little appetite to substantially increase the size …
23rd October 2013
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 trigger a self-fulfilling rise in house price …
22nd October 2013
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 well as lower taxes. The more relevant indicator for …
18th October 2013
With much fanfare, the Government has brought forward by three months the launch of the controversial Help to Buy mortgage guarantee scheme. We remain unconvinced that it will generate a large number of additional sales, but what impact it does have will …
15th October 2013
We have been more sceptical than most that the Help to Buy mortgage guarantee will spark a new house price boom. Although the complexity of the scheme makes it difficult to draw firm conclusions, nothing in yesterday’s launch documentation has altered our …
9th October 2013
The RICS reported another strong rise in new buyer enquires in September, even before today’s launch of the Help to Buy mortgage guarantee. But with interest rates on the first guaranteed mortgage products to be announced looking expensive, and with …
8th October 2013
The recent concerns about the type of economic recovery underway in the UK are overdone. While the recovery still faces some major challenges, we do not believe that an over-reliance on the housing market is one of them. In fact, in this …
7th October 2013
Fears that another house price boom is on the way risk becoming self-fulfilling, as buyers rush into the market and sellers stay away in anticipation of future price gains. But demand still faces several constraints – real earnings are falling, banks are …
3rd October 2013
House prices rose further in September according to the Halifax, driven up by a release of some pent-up housing demand. The mortgage guarantee aspect of Help to Buy may push prices up further, but we doubt it will be as successful as some fear, and a …
Another steady rise in mortgage approvals indicates a housing market that is gradually recovering. But the growth in lending is likely to remain modest, despite attempts by the Government to supercharge the recovery. … Mortgage Lending (Aug. …
30th September 2013
The Land Registry house price index recorded a surprisingly weak 0.1% monthly rise in August, setting it apart from other, stronger measures. But it confirmed that London, where house price inflation reached 7.1%, is very still much the outlier. … Land …
27th September 2013
With conditions in the housing market very tight, September saw another strong rise in prices of 0.9%. But the good news is that, in response to growing concerns about the pace of these gains, the Chancellor has given the Bank of England more powers to …
Despite extensive media coverage, outside of central London there is little evidence of a house price boom, and there has been no increase in the stock of mortgage debt. Therefore, there seems little chance that the Financial Policy Committee will act to …
25th September 2013
The number of mortgages approved by banks increased again in August. But the momentum in mortgage lending growth appears to be fading, and there is scant evidence that a renewed secured credit boom is about to take-off. … BBA Mortgage Lending (Aug. …
24th September 2013
The sharp rise in swap rates in recent months has raised concerns that fixed mortgage rates will now follow. But while lenders will still be keen to maintain a healthy margin on any new lending, some banks are now looking to increase market share. That …
20th September 2013
The ONS house price index, which shows that prices in England have returned to pre-crisis highs, has made plenty of headlines today. But compared to other indices, the ONS measure places greater weight on higher valued properties and developments in …
18th September 2013
A boom in house prices would certainly not be sustainable, and the authorities should take action to prevent this. But the Bank of England already has new tools to prevent any unwarranted rise in house prices, and these should be tested before a rigid …
13th September 2013
There was a further slight uptick in mortgage approvals in September, but it would be premature to view this as the start of a sustained recovery in the housing market. The improvement was modest, and banks show no desire to materially increase their …
12th September 2013
Business cycles in advanced economies have been exceptionally closely aligned in recent years because of the global financial crisis, but they are likely to become less so in future. Although a global recovery is now under way, we doubt that the rising …
11th September 2013
A robust year-on-year rise in gross mortgage lending during the second quarter of 2013 provides further evidence that the mortgage market is returning to life. But first-time buyers without a large deposit, or willing to buy a new home via Help to Buy, …
10th September 2013
Another strong rise in the demand for homes, coupled with a lagging response on properties being put up for sale, has led to a rise in house prices. But the conditions for a sustainable rise in first-time buyer numbers are not in place, and future price …
Past housing market upswings have all coincided with above-average rates of consumer spending growth. But it is easy to overstate the strength of the direct linkages between the two. Therefore, unless we have under-estimated the likely strength of income …
9th September 2013
House prices rose further in August according to the Halifax, as demand for homes outstripped the number being put up for sale. But that imbalance is likely to subside gradually, which will reduce the upwards pressure on prices. … Halifax House Prices …
6th September 2013
The region is restructuring, but not by enough to allow it to outperform the UK in the years ahead. We forecast 1.3% growth this year and 2% in 2014, matching the UK, but with longer run rates about 1% below the UK. So only modest employment rises after …
5th September 2013
The housing market appears to be gaining traction, with a further rise in house prices and mortgage lending. But talk of a new housing boom is wide of the mark. … Nationwide House Prices (Aug.) & Mortgage Lending …
30th August 2013
House prices as measured by the Land Registry are now beginning to catch up with the main lender indices, with the strongest month-on-month rise for 1½ years. But a new house price boom still looks to be unlikely. … Land Registry Repeat Sales Index …
29th August 2013
The new-build premium has more or less held its ground over the past year, with new homes around 15% more expensive than equivalent second-hand properties. But with new-build prices now receiving an additional stimulus from the equity loan component of …
The steady growth in mortgage approvals stalled in July, and net lending was negative for an unprecedented seventh month in a row. While this is probably a blip, it highlights that lenders are still cautious about whom they lend to, and talk of a new …
23rd August 2013
By reducing households’ concerns that mortgage rates will increase in the near future, forward guidance has the potential to provide a further boost to housing demand. But while the policy can’t harm housing market activity, with wholesale interest rates …
21st August 2013
After the success of the Help to Buy equity loan scheme, there are concerns that the potentially much larger mortgage guarantee aspect of the scheme could trigger a new house price boom when it is launched in 2014. Compared to the equity loan, however, …
19th August 2013
Private housing starts are increasing as builders begin to respond to the boost in demand from record low mortgage rates and the Help to Buy equity loan scheme. But with the supply response so far lagging demand, prices are also on the up. … …
15th August 2013
The latest RICS housing survey reported a jump in demand for homes and house prices, as record low mortgage rates tempt more people into buying a home. But with housing overvalued, a rise in prices should not be viewed as good news. … RICS Residential …
13th August 2013
Record low mortgage rates and the Help to Buy equity loan scheme have given a boost to housing demand, which has helped house prices to make some gains. But with more homes now coming onto the market, and real earnings still falling, a full blown house …
9th August 2013
Low interest rates and lender forbearance are keeping mortgage possessions at levels which pose little threat to the outlook for house prices. But a meaningful drop in mortgage arrears is unlikely until the squeeze on incomes goes into reverse. … …
8th August 2013
Lending to buy-to-let investors gathered pace in the second quarter. But the data do not suggest that landlords are playing a disproportionately large role in the nascent housing market recovery. … CML Buy-to-Let Lending …
Halifax reported that house prices rose by a sturdy 0.9%m/m in July, which helped the annual rate to a three-year high. But with house prices already overvalued, the gains are worryingly reliant on Government interventions. … Halifax House Prices …
6th August 2013
Signs of life in the housing market could aid the recovery in consumer spending. But continued falls in real pay are likely to keep any near-term consumer revival subdued. … Fragile recovery finally …
5th August 2013
House prices are continuing to gain ground. A strong 0.8%m/m increase combined with favourable base effects to boost the annual growth rate to 3.9%. But with house prices already overvalued, we do not see this as good news. … Nationwide House Prices …
2nd August 2013
House prices in London as a whole have outperformed the rest of the country since the financial crisis, but this is not the case for all parts of the capital. Those boroughs with the highest prices prior to 2008 crash have seen a far stronger recovery, …
31st July 2013
After three months of gains, the number of mortgages approved for house purchase showed a surprising drop in June. While this is almost certainly a blip, rather than an indication that banks are pulling back from the housing market, it is a reminder that …
29th July 2013
The recent rise in demand for new-build homes, partly driven by Help to Buy, has helped private home starts reach their highest level since the start of the financial crisis. While this is good news, the boost to supply has yet to match the rise in …
26th July 2013
The Land Registry reported that house prices increased by 0.6%m/m in June. But there is scant evidence that house prices are about to take-off - the annual rate stayed in the narrow band of 0.2% to 0.9% where it has been for the past year. … Land …
Mortgage lending by the major high street banks increased for the fourth consecutive month in June, funded by a further rise in mortgage repayments. But compared to May and April, the growth in lending has slowed. … BBA Mortgage Lending (Jun …
23rd July 2013
