Zoopla has just released its latest 'Rent v Buy Index', which reveals the top places across Britain where renting a property beats buying and vice versa in current climate. This was done by comparing current asking prices to the average rents for two bedroom flats in the top 50 locations around the country.
What may come as a surprise to many is that buying a home beats renting in 74% of cases around Britain with average monthly mortgage repayments being 8% lower, on average, than the cost of renting (assuming interest-only mortgage at 5% interest p.a.). Perhaps the biggest surprise is that it is still cheaper to buy than rent in London, despite high prices.
Topping the list of places where renting is a better option than buying currently is Huddersfield, where the average two-bed flat costs only £493 per month to rent versus £146,898 to buy. Renting is also cheaper than buying in a number of other places including Oldham, Brighton, Swansea and Edinburgh.
At the other end of the scale, Dundee comes in top of the list of places where buying is currently the best option with average asking prices for two-bed flats at only £88,263 versus £530 per month in rent. Other locations around Britain where buying is by far the better choice at current asking prices include Birmingham, Derby, Cambridge and Milton Keynes.
Even in London, which has the highest rents in the country, buying is still the more cost-effective option, with average rents on two-bed flats currently at £2,155 per month versus average asking prices at an eye-watering £446,345.
While buying wins out over renting today, the impact of a rise in interest rates cannot be ignored. If interest rates were to increase by 1% and rents to remain the same, renting would become more cost-effective in 80% of the locations studied.
The Rent/Buy Ratio indicates the degree to which renting is less/more expensive than buying in each location. A figure above 1.0 indicates it is cheaper to rent than buy and the greater the figure the more expensive buying is versus renting. Similarly a figure below 1.0 indicates it is cheaper to buy than rent and the lower the figure the more expensive it is to rent versus buy.
Current active property listings on Zoopla.co.uk have been used to compare the relative costs of buying versus renting two bedroom flats in the largest 50 cities/towns across Britain. The cost of buying is based on repayment costs of an interest-only mortgage at 5% interest per annum.
Source: http://www.zoopla.co.uk
Tuesday, 27 July 2010
Mortgage lending up 15% in June
Gross mortgage lending in June was an estimated £13.1 billion, a 15% increase from £11.4 billion in May and a 7% increase from £12.2 billion in June last year, according to new data from the Council of Mortgage Lenders (CML).
Gross lending in the second quarter of 2010 was an estimated £35 billion, up 17% from the first quarter of this year (£30 billion) and up 7% from the second quarter of 2009 (£32.7 billion). Lending in the first half of 2010 remained unchanged from the first half of 2009 (£65 billion).
In today's market commentary, CML economist Paul Samter commented: "Our gross lending estimate of £13.1 billion in June represents a seasonal pick-up and is higher than June last year, but is still indicative of low levels of activity.
"There are signs of house prices stabilising and more properties coming onto the market following the abolition of home information packs. This may improve liquidity in the market, but transaction levels are subdued and likely to remain so while access to credit remains constrained.
"The FSA has outlined a clear direction of travel as part of its mortgage market review. The consultation paper on responsible lending increases the regulatory burden on lenders and could make it harder for borrowers to access credit."
CML's members are banks, building societies and other lenders who together undertake around 94% of all residential mortgage lending in the UK. There are 11.4 million mortgages in the UK, with loans worth over £1.2 trillion. CML does not publish statistics for mortgage approvals. The data in CML's monthly Regulated Mortgage Survey and gross lending press releases relate to mortgage advances only. A mortgage approval is the firm offer to a customer of a specific amount of credit secured against a particular property. A mortgage advance is the total amount of loan actually provided to the buyer, by the lender.
Source
http://www.cml.org.uk
Gross lending in the second quarter of 2010 was an estimated £35 billion, up 17% from the first quarter of this year (£30 billion) and up 7% from the second quarter of 2009 (£32.7 billion). Lending in the first half of 2010 remained unchanged from the first half of 2009 (£65 billion).
In today's market commentary, CML economist Paul Samter commented: "Our gross lending estimate of £13.1 billion in June represents a seasonal pick-up and is higher than June last year, but is still indicative of low levels of activity.
"There are signs of house prices stabilising and more properties coming onto the market following the abolition of home information packs. This may improve liquidity in the market, but transaction levels are subdued and likely to remain so while access to credit remains constrained.
"The FSA has outlined a clear direction of travel as part of its mortgage market review. The consultation paper on responsible lending increases the regulatory burden on lenders and could make it harder for borrowers to access credit."
CML's members are banks, building societies and other lenders who together undertake around 94% of all residential mortgage lending in the UK. There are 11.4 million mortgages in the UK, with loans worth over £1.2 trillion. CML does not publish statistics for mortgage approvals. The data in CML's monthly Regulated Mortgage Survey and gross lending press releases relate to mortgage advances only. A mortgage approval is the firm offer to a customer of a specific amount of credit secured against a particular property. A mortgage advance is the total amount of loan actually provided to the buyer, by the lender.
Source
http://www.cml.org.uk
e-Scams on the rise in the rental sector
BRISTOL -- The Police Department today issued a warning about a house rental scam involving ads on the Internet.
Police said they have received a number of complaints from city residents describing a scam in which the potential victim finds what appears to be a rental advertisement on the internet and makes contact with an individual, claiming to be the homeowner, by e-mail .
As the scheme progresses, police said, the alleged homeowner, who claims to be living in another country, requests money be sent by a Western Union type of transfer to an address given.
The houses presented to the victims as rentals are in fact homes for sale by the legitimate owners.
If confronted with the above described scenario, residents are advised to notify the Bristol Police Dept. at (860) 584-3011 .
The Bristol Press
Police said they have received a number of complaints from city residents describing a scam in which the potential victim finds what appears to be a rental advertisement on the internet and makes contact with an individual, claiming to be the homeowner, by e-mail .
As the scheme progresses, police said, the alleged homeowner, who claims to be living in another country, requests money be sent by a Western Union type of transfer to an address given.
The houses presented to the victims as rentals are in fact homes for sale by the legitimate owners.
If confronted with the above described scenario, residents are advised to notify the Bristol Police Dept. at (860) 584-3011 .
The Bristol Press
Saturday, 24 July 2010
Home buyers to pay the price for energy guzzling properties
Home buyers could be forced to pay a higher rate of Stamp Duty if they buy a home with a poor Energy Assessment.
The proposal would be introduced alongside the Government’s £90bn Green Deal scheme in 2012, by which householders will be offered ‘free’ green makeovers by energy companies, local councils or DIY chains.
The UK has to meet legally binding targets to cut greenhouse gas emissions by 34% of their 1990 levels within ten years.
The Stamp Duty proposal comes from the Green Investment Bank Commission, an advisory body set up by the Labour government last year.
The report says: “Ultimately, either implementing penalty rates of Stamp Duty for houses purchased where the buyer does not implement available energy efficiency measures, or setting minimum standards on properties, will be required.”
One idea being considered by the Department of Energy and Climate Change is that people who buy a property with low levels of insulation and a dated boiler would have to pay an extra 0.5% levy on top of the normal Stamp Duty.
If they improve the energy efficiency within a year, they would get the money back as a tax rebate.
To avoid paying the higher Stamp Duty, a home would need to be upgraded to at least band E on an EPC.
However, the proposals have met with heated opposition, with critics complaining that it is a stealth tax and that improving the energy efficiency of properties should not be part of the sales process.
John O’Connell, deputy research director of the TaxPayers’ Alliance, said: “Just when the housing market is starting to pick up, it would be madness to throw in a punitive tax like this that could put people off buying altogether.
“Requiring expensive upgrades to people’s homes now, when so many people are struggling just to get on and stay on the property ladder, is particularly awful timing.
“The idea should be thrown in the recycling bin immediately.”
But Marc Blomfield, managing director of The National EPC Company, said the Stamp Duty change would incentivise sellers to make improvements, in order to make their properties more saleable.
He said: “Despite scrapping HIPs, the Government has signalled its intention to increase household energy efficiency by retaining the EPC as a required marketing tool.
“The Government is committed to reducing carbon dioxide emissions and sees households as the major target.”
This may be a good time to start planning for the future. You may even qualify for some grants.
Why not have an Energy Assessment carried out by one of our accredited Energy Assessors?
The proposal would be introduced alongside the Government’s £90bn Green Deal scheme in 2012, by which householders will be offered ‘free’ green makeovers by energy companies, local councils or DIY chains.
The UK has to meet legally binding targets to cut greenhouse gas emissions by 34% of their 1990 levels within ten years.
The Stamp Duty proposal comes from the Green Investment Bank Commission, an advisory body set up by the Labour government last year.
The report says: “Ultimately, either implementing penalty rates of Stamp Duty for houses purchased where the buyer does not implement available energy efficiency measures, or setting minimum standards on properties, will be required.”
One idea being considered by the Department of Energy and Climate Change is that people who buy a property with low levels of insulation and a dated boiler would have to pay an extra 0.5% levy on top of the normal Stamp Duty.
If they improve the energy efficiency within a year, they would get the money back as a tax rebate.
To avoid paying the higher Stamp Duty, a home would need to be upgraded to at least band E on an EPC.
However, the proposals have met with heated opposition, with critics complaining that it is a stealth tax and that improving the energy efficiency of properties should not be part of the sales process.
John O’Connell, deputy research director of the TaxPayers’ Alliance, said: “Just when the housing market is starting to pick up, it would be madness to throw in a punitive tax like this that could put people off buying altogether.
“Requiring expensive upgrades to people’s homes now, when so many people are struggling just to get on and stay on the property ladder, is particularly awful timing.
“The idea should be thrown in the recycling bin immediately.”
But Marc Blomfield, managing director of The National EPC Company, said the Stamp Duty change would incentivise sellers to make improvements, in order to make their properties more saleable.
He said: “Despite scrapping HIPs, the Government has signalled its intention to increase household energy efficiency by retaining the EPC as a required marketing tool.
“The Government is committed to reducing carbon dioxide emissions and sees households as the major target.”
This may be a good time to start planning for the future. You may even qualify for some grants.
Why not have an Energy Assessment carried out by one of our accredited Energy Assessors?
Monday, 19 July 2010
Bloated listings as buyers can't find funds, say Rightmove
New sellers now outnumber new mortgage approvals by 5.2, Rightmove reported this morning, while the number of unsold number of properties sticking on agents’ books has jumped by almost 25% in the first six months of this year.
Rightmove – which has some 90% market share – reports that more than 30,000 new properties are coming to the market each week, up by 45% on last July.
Asking prices for properties new to the market are, however, finally dropping. Rightmove reports that over the last month, they have come down by 0.6% – the first fall this year.
But with the average asking price now £236,332, there is still a huge gap between sellers’ expectations and the reality of mortgage-approved prices as reported by Halifax and Nationwide. Halifax is quoting £166,203 and Nationwide £170,111.
Rightmove is, however, forecasting more falls in asking prices as the year goes on.
Commercial director Miles Shipside said: “The number of new mortgages being approved each month is less than half the number of new sellers, with the imbalance being exacerbated by the increase of nearly 50% in the number of properties coming to the market compared to a year ago.
“More aggressive pricing is now the order of the day.”
He went on: “Estate agents are suffering from podgy portfolios and buyers’ fitness to purchase is in correspondingly poor shape.
“With agents beginning to choke on a surfeit of new stock, sellers are going to have to price at bargain levels.”
He warned: “The tradition of testing the water at a higher figure before reducing at a later date will backfire in areas of excess supply, as over-ambitious sellers will have to cut back even more as they chase prices downwards.” (source www.estateagenttoday.co.uk)
The good news is that THERE ARE buyers out there for sensibly priced properties. For an accurate assessment of your property, call Blakes today on 023 92 602155
Rightmove – which has some 90% market share – reports that more than 30,000 new properties are coming to the market each week, up by 45% on last July.
Asking prices for properties new to the market are, however, finally dropping. Rightmove reports that over the last month, they have come down by 0.6% – the first fall this year.
But with the average asking price now £236,332, there is still a huge gap between sellers’ expectations and the reality of mortgage-approved prices as reported by Halifax and Nationwide. Halifax is quoting £166,203 and Nationwide £170,111.
Rightmove is, however, forecasting more falls in asking prices as the year goes on.
Commercial director Miles Shipside said: “The number of new mortgages being approved each month is less than half the number of new sellers, with the imbalance being exacerbated by the increase of nearly 50% in the number of properties coming to the market compared to a year ago.
“More aggressive pricing is now the order of the day.”
He went on: “Estate agents are suffering from podgy portfolios and buyers’ fitness to purchase is in correspondingly poor shape.
“With agents beginning to choke on a surfeit of new stock, sellers are going to have to price at bargain levels.”
He warned: “The tradition of testing the water at a higher figure before reducing at a later date will backfire in areas of excess supply, as over-ambitious sellers will have to cut back even more as they chase prices downwards.” (source www.estateagenttoday.co.uk)
The good news is that THERE ARE buyers out there for sensibly priced properties. For an accurate assessment of your property, call Blakes today on 023 92 602155
Tuesday, 13 July 2010
Property Market Outlook - Summer 2010
Property prices are highly sensitive to market fluctuations and always reflect the balance between supply and demand.
Earlier this year we saw a degree of price stability and even some modest gains due to demand outstripping supply. Buyers, frustrated after two years of confusion started to re-enter the market, only to be met with a scarcity of properties from which to choose. Sellers simply didn’t want to sell at what they perceived to be the bottom of the market, especially in view of the possible abolition of Home Information Packs after the election. So prices held up well.
However, the election happened and HIPs were abolished making it easier and cheaper to commence marketing. Sellers, hoping to cash in on hearing of the earlier price rises decided to come to market and as a result 43% (51% in London) more homes are currently on the market than at the start of the year, with a 6% rise in stock levels this month alone. However, the RICS has reported a drop in the number of new buyer enquiries nationally in the past month.
This will inevitably have an adverse effect on prices although this is yet to be fully reflected in the summer trading figures. (You may recall in January that we advised people not to delay their sale this year!)
In view of this shift in balance as well as continued economic uncertainty, our advice to sellers is to look very carefully at how your property is positioned in the market in relation to others available for sale, and let their bullish price be a springboard to help you sell yours.
But, as they say on Crimewatch, don’t have nightmares. We seem to be bucking the national trend! We also find our clients are happy to heed our advice and when they do…they move! Why not call us on 023 92 602155 for an initial chat about how we can help you too?
Monday, 12 July 2010
Asking prices stick as 43% more homes flood market
There are now 43% more houses on the market than at the start of the year – but asking prices are still not coming down.
According to FindaProperty this morning, the average asking price is £220,231 – compared with the £166,000 actual sales price quoted by Halifax.
Stock levels have grown 6% in the last month and there are more houses for sale than in January 2008.
FindaProperty says that in seven regions in the UK, asking prices have stabilised or risen slightly in the last month.
In only four regions have asking prices fallen. These are the West Midlands, Wales, the South-West and London. In the first three, asking prices have fallen only 0.1% to 0.2%.
The only meaningful fall in asking prices is in London, where FindaProperty records a 1.1% drop, down to an average asking price of £435,110.
In London, stock levels rose 7% over the last month and are up 51.3% compared with the start of the year.
source www.estateagenttoday.co.uk
Inflated asking prices are confusing to buyers and sellers alike and will not meet with approval from mortgage lenders. In order to sell sucessfully in this market, it is even more important that you get the true selling value of your home from your agent rather than an inflated "ego booster" figure. This is a trick that some less scrupulous agents will use to buy your instructions and who will then spend the next six months beating you down to a realistic selling figure which is often far lower than the figure that would have received had the correct pricing strategy been used from the start.
Why not call Blakes to get an honest and reliable appriasal of your property's current value?
Call 023 92 602155.
According to FindaProperty this morning, the average asking price is £220,231 – compared with the £166,000 actual sales price quoted by Halifax.
Stock levels have grown 6% in the last month and there are more houses for sale than in January 2008.
FindaProperty says that in seven regions in the UK, asking prices have stabilised or risen slightly in the last month.
In only four regions have asking prices fallen. These are the West Midlands, Wales, the South-West and London. In the first three, asking prices have fallen only 0.1% to 0.2%.
The only meaningful fall in asking prices is in London, where FindaProperty records a 1.1% drop, down to an average asking price of £435,110.
In London, stock levels rose 7% over the last month and are up 51.3% compared with the start of the year.
source www.estateagenttoday.co.uk
Inflated asking prices are confusing to buyers and sellers alike and will not meet with approval from mortgage lenders. In order to sell sucessfully in this market, it is even more important that you get the true selling value of your home from your agent rather than an inflated "ego booster" figure. This is a trick that some less scrupulous agents will use to buy your instructions and who will then spend the next six months beating you down to a realistic selling figure which is often far lower than the figure that would have received had the correct pricing strategy been used from the start.
Why not call Blakes to get an honest and reliable appriasal of your property's current value?
Call 023 92 602155.
Friday, 9 July 2010
Lloyds extends 5% deposit scheme to home movers
Lloyds TSB is extending its direct-only Lend a Hand scheme, which grants mortgages with 5% deposits, to home movers today.
The product was only available to first time buyers but will now target home movers who do not have the large deposit.
With Lend a Hand borrowers can take out a mortgage with a 5% deposit of and access a rate that is the equivalent of products available for borrowers with a significantly bigger down-payment.
The deposit can be so low because funds are backed up with the savings of helper, such as a parent, grandparent or other family member.
Borrowers can get rates from 4.79% with a £895 fee, even if they have a 5% deposit.
At the same time, their helper benefits from a 3.75% savings rate but a legal charge is taken over the savings to offset the risk.
Stephen Noakes, commercial director of mortgages, says: “The Lend a Hand mortgage has been a very successful way for people to take their first steps in the housing market. It’s great news that it can now support those that are looking to move up the ladder too.
“The product retains all of the features that make it so unique - borrowers can move with just a 5% deposit but without the high price tag that it would normally bring. At the same time, their family can provide their support and benefit from a competitive savings rate.”
Lloyds TSB is launching a campaign looking at the challenges facing first time sellers in today’s market.
A good time to visit our mortgage finder
http://www.nfoppmortgages.co.uk/Home.aspx?ID=3560
Article from: www.mortgagestrategy.co.uk 08/07/10
The product was only available to first time buyers but will now target home movers who do not have the large deposit.
With Lend a Hand borrowers can take out a mortgage with a 5% deposit of and access a rate that is the equivalent of products available for borrowers with a significantly bigger down-payment.
The deposit can be so low because funds are backed up with the savings of helper, such as a parent, grandparent or other family member.
Borrowers can get rates from 4.79% with a £895 fee, even if they have a 5% deposit.
At the same time, their helper benefits from a 3.75% savings rate but a legal charge is taken over the savings to offset the risk.
Stephen Noakes, commercial director of mortgages, says: “The Lend a Hand mortgage has been a very successful way for people to take their first steps in the housing market. It’s great news that it can now support those that are looking to move up the ladder too.
“The product retains all of the features that make it so unique - borrowers can move with just a 5% deposit but without the high price tag that it would normally bring. At the same time, their family can provide their support and benefit from a competitive savings rate.”
Lloyds TSB is launching a campaign looking at the challenges facing first time sellers in today’s market.
A good time to visit our mortgage finder
http://www.nfoppmortgages.co.uk/Home.aspx?ID=3560
Article from: www.mortgagestrategy.co.uk 08/07/10
Worrying discrepancies in latest housing market reports
Sales volumes up – prices down: that appears to be the story for June.
However, there are puzzling discrepancies in the two latest housing market reports.
According to the LSL Acadametrics house price index, housing market transactions soared 20% last month. They went from 52,975 in May to an estimated 63,500.
Way down on the long-term monthly average for June of 100,213 deals, the rise reverses the abnormally large drop in transactions during May.
Unlike Acadametrics, Halifax is silent on transaction levels, but hints that housing market activity has eased. It says that mortgage approvals in the three months to May were 3% lower than in the previous three months, “indicating a modest softening in housing market activity”.
Both Acadametrics, which produced its report for the first time in conjunction with LSL’s input, and Halifax yesterday were agreed in reporting falls in prices. Halifax said prices fell 0.5% in June and Acadametrics said they fell 0.6%.
Halifax has reported house price falls in four out of the last five months, with the pace of the decline increasing.
The Halifax figures show that prices are still 7.5% higher than their April 2009 low, and the average UK house price now stands at £166,203.
Acadametrics, which puts annual house price inflation at 7.7%, says house prices are in fact lower (by 5.9%) from peak, which it says was February 2008.
More concerning is the huge disparity in average house price. Halifax says it is around £166,203 whilst Acadametrics puts it at £218,000 – an unbelievable gap of £52,000.
So large is the discrepancy that, despite agreeing on other changes, the two indices once again call into question the reliability of such surveys, given the headlines they create and the rush of experts to comment.
Once again, it seems, we will have to await the Land Registry figures.
Article from: www.estateagenttoday.co.uk 09/07/10
However, there are puzzling discrepancies in the two latest housing market reports.
According to the LSL Acadametrics house price index, housing market transactions soared 20% last month. They went from 52,975 in May to an estimated 63,500.
Way down on the long-term monthly average for June of 100,213 deals, the rise reverses the abnormally large drop in transactions during May.
Unlike Acadametrics, Halifax is silent on transaction levels, but hints that housing market activity has eased. It says that mortgage approvals in the three months to May were 3% lower than in the previous three months, “indicating a modest softening in housing market activity”.
Both Acadametrics, which produced its report for the first time in conjunction with LSL’s input, and Halifax yesterday were agreed in reporting falls in prices. Halifax said prices fell 0.5% in June and Acadametrics said they fell 0.6%.
Halifax has reported house price falls in four out of the last five months, with the pace of the decline increasing.
The Halifax figures show that prices are still 7.5% higher than their April 2009 low, and the average UK house price now stands at £166,203.
Acadametrics, which puts annual house price inflation at 7.7%, says house prices are in fact lower (by 5.9%) from peak, which it says was February 2008.
More concerning is the huge disparity in average house price. Halifax says it is around £166,203 whilst Acadametrics puts it at £218,000 – an unbelievable gap of £52,000.
So large is the discrepancy that, despite agreeing on other changes, the two indices once again call into question the reliability of such surveys, given the headlines they create and the rush of experts to comment.
Once again, it seems, we will have to await the Land Registry figures.
Article from: www.estateagenttoday.co.uk 09/07/10
Thursday, 8 July 2010
Anxiety on lending and job cuts could threaten market
Indicators are suggesting a market buzzing with activity – but while home-owners are increasingly keen to move, there is growing anxiety among the public.
Mortgage funding is as tight as three months ago or even tighter, say nearly eight in ten would-be home movers.
A survey of 5,442 home owners by Zoopla underlines other worries over job losses and interest rate hikes.
Although 78% of the sample think property prices will rise over the next six months, the proportion has fallen from 81% three months ago.
While 50% say that mortgages are as difficult to obtain as three months ago, 27% say it has actually become harder. One in three (34%) cite mortgage availability as the biggest continued threat to the housing mortgage.
According to new figures from Mortgage Brain, a mortgage sourcing system, there are now 6,009 mortgage products available. It is the first time since 2008 that the number of mortgages has broken the 6,000 barrier.
The figure is up 4% from 5,803 at the end of May. This time last year, there were just 2,413 mortgages. But even today's new figure remains a fraction of availability at the height of the market, in August 2007, when there were over 30,000 mortgage products available.
The Zoopla survey also shows that a potential rise in interest rates is a major worry for 25% while job losses in the public sector concern 21%.
Nick Leeming, commercial director of Zoopla, said: “The fear remains that the revival in the housing market will be derailed unless the banks make a concerted effort to increase lending.”
Property firm CB Richard Ellis also warned that the sales market remains constrained by the lack of mortgage finance.
Jennet Siebrits, head of residential research, said: “First-time buyers require huge deposits to get a foot on the housing ladder and there is no sign of banks relaxing lending in the near future.
“Tougher times are ahead as the various governmental financing support schemes draw to a close and there becomes a growing need for lenders to refinance assets currently protected under their umbrella.”
Yet, as more houses have piled on to the market, surveyors say they are extremely busy.
The number of residential property valuations in June was 20% higher in June than in May, according to Connells Survey and Valuation. This was an annual increase of 16%.
The strong performance of the valuations market in June was underpinned by the increasing number of home owners looking to move.
The number of valuations for home movers (as opposed to first-time buyers and for remortgage purposes) was up 6% month-on-month, following a rise of 26% in May.
Ross Bowen, managing director of Connells Survey and Valuation, said: “Summer has brought a seasonal uplift in activity. But this has been exaggerated by the decision to discard HIPs.
“In June, there was a strong bounce in the number of properties hitting the market and it’s not just speculative sellers testing the waters. Thousands of home owners are no longer trapped in negative equity and are looking to move up the property ladder.”
There was also a strong annual improvement in the number of valuations for buy-to-let investors looking to add to their portfolios (plus 12%). Buy-to-let valuations also increased by 10% in June compared to May.
The first-time buyer market did not show such strong progress. Although there was a seasonal increase in valuations, jumping by 36% compared to May, this was only a slight improvement on June 2009 (plus 1%).
It is an interesting time to sell, but one that needs expert guidance for the home owner.
How many mortgage deals are out there? just click on http://www.nfoppmortgages.co.uk/Home.aspx?ID=3560 to see for yourself!
Why not give us a call on 023 92 602155 for a free chat about how to succeed in selling your home?
Mortgage funding is as tight as three months ago or even tighter, say nearly eight in ten would-be home movers.
A survey of 5,442 home owners by Zoopla underlines other worries over job losses and interest rate hikes.
Although 78% of the sample think property prices will rise over the next six months, the proportion has fallen from 81% three months ago.
While 50% say that mortgages are as difficult to obtain as three months ago, 27% say it has actually become harder. One in three (34%) cite mortgage availability as the biggest continued threat to the housing mortgage.
According to new figures from Mortgage Brain, a mortgage sourcing system, there are now 6,009 mortgage products available. It is the first time since 2008 that the number of mortgages has broken the 6,000 barrier.
The figure is up 4% from 5,803 at the end of May. This time last year, there were just 2,413 mortgages. But even today's new figure remains a fraction of availability at the height of the market, in August 2007, when there were over 30,000 mortgage products available.
The Zoopla survey also shows that a potential rise in interest rates is a major worry for 25% while job losses in the public sector concern 21%.
Nick Leeming, commercial director of Zoopla, said: “The fear remains that the revival in the housing market will be derailed unless the banks make a concerted effort to increase lending.”
Property firm CB Richard Ellis also warned that the sales market remains constrained by the lack of mortgage finance.
Jennet Siebrits, head of residential research, said: “First-time buyers require huge deposits to get a foot on the housing ladder and there is no sign of banks relaxing lending in the near future.
“Tougher times are ahead as the various governmental financing support schemes draw to a close and there becomes a growing need for lenders to refinance assets currently protected under their umbrella.”
Yet, as more houses have piled on to the market, surveyors say they are extremely busy.
The number of residential property valuations in June was 20% higher in June than in May, according to Connells Survey and Valuation. This was an annual increase of 16%.
The strong performance of the valuations market in June was underpinned by the increasing number of home owners looking to move.
The number of valuations for home movers (as opposed to first-time buyers and for remortgage purposes) was up 6% month-on-month, following a rise of 26% in May.
Ross Bowen, managing director of Connells Survey and Valuation, said: “Summer has brought a seasonal uplift in activity. But this has been exaggerated by the decision to discard HIPs.
“In June, there was a strong bounce in the number of properties hitting the market and it’s not just speculative sellers testing the waters. Thousands of home owners are no longer trapped in negative equity and are looking to move up the property ladder.”
There was also a strong annual improvement in the number of valuations for buy-to-let investors looking to add to their portfolios (plus 12%). Buy-to-let valuations also increased by 10% in June compared to May.
The first-time buyer market did not show such strong progress. Although there was a seasonal increase in valuations, jumping by 36% compared to May, this was only a slight improvement on June 2009 (plus 1%).
It is an interesting time to sell, but one that needs expert guidance for the home owner.
How many mortgage deals are out there? just click on http://www.nfoppmortgages.co.uk/Home.aspx?ID=3560 to see for yourself!
Why not give us a call on 023 92 602155 for a free chat about how to succeed in selling your home?
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