Filtered by Subscriptions: UK Housing Use setting UK Housing
The Bank of England reported that mortgage approvals for house purchase contracted marginally in July. But with the disruption caused by the MMR fading and a strong economic backdrop, lending should recover slowly from here. … Mortgage Lending …
1st September 2014
The Nationwide and Land Registry both reported strong month-on-month rises in house prices in August and July respectively. But underlying measures suggest the momentum in the market is now dissipating, and growth should slow from here. … Nationwide …
29th August 2014
The BBA reported that banks approved fewer mortgages for house purchase in July compared to the previous month. But with the employment rate close to a record high and house price expectations elevated, lending will grow from here. … BBA Mortgage …
26th August 2014
The marginal gain in housing starts in the second quarter suggests that material and labour shortages are constraining housebuilders’ output. Despite the impetus from the Help to Buy equity loan scheme and favourable wider economic conditions, these …
21st August 2014
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. While there is something in the first of these stylised …
20th August 2014
While the recovery in consumer spending is no longer gaining pace, we expect it to remain brisk over the next couple of years. Real earnings should pick up as inflation eases and further falls in unemployment strengthen workers’ bargaining power. And …
18th August 2014
New buyer enquiries contracted marginally in July according to the RICS survey, which should help cool house price inflation. But the stock of property on the market is still very low, and price expectations remain historically elevated. … RICS …
14th August 2014
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 only change once the interest rate on new mortgage loans …
13th August 2014
The number of mortgages advanced for house purchase in the second quarter rose by 19% compared to a year earlier according to the CML, which suggests that the MMR has not slammed the brakes on lending. Indeed, the amount first-time buyers borrowed in …
11th August 2014
The moderation in housing market activity seen in recent months partly reflects the disruption caused by the MMR, and as this passes mortgage lending and demand will continue to increase. But concern over housing valuations and lender caution will mean …
7th August 2014
The volatility in the Halifax measure of house prices continues, with a rise of 1.4% in July more than reversing last month’s drop. The underlying rate of growth has now accelerated, but given other signs of a cooling in housing market activity we expect …
6th August 2014
House price growth eased in July according to the Nationwide, with a rise of just 0.1% m/m – the slowest since April last year. A slowdown in growth was expected, given the drop in sales seen in recent months, and we expect the next year or two to be …
31st July 2014
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 slowdown in mortgage approvals into an outright …
30th July 2014
The disruption caused by the MMR appears to be passing, with the Bank of England reporting a healthy rise in mortgage approvals in June. A strong economic recovery will ensure that lending grows steadily over the coming months. … Mortgage Lending …
29th July 2014
The Land Registry reported that house prices were flat in June, which led to the first drop in the annual rate in a year. That is consistent with other measures indicating a slowdown in the housing market. However, the strong economic backdrop rules out a …
28th July 2014
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 housing demand supported by a growing economy and rising …
25th July 2014
The BBA reported that mortgage approvals for house purchase rose for the second consecutive month in June, following upwards revisions to May’s data. That indicates that the disruption caused by the MMR is now fading, and mortgage lending is likely to …
23rd July 2014
Housing market activity is showing signs of cooling, with mortgage approvals, new buyer enquiries and transactions all easing in recent months. The drop in demand has helped to loosen market conditions, so house price gains over the second half of the …
16th July 2014
The recovery should maintain its strong paceeven though interest rates look set to risefrom the record low level soon. The MonetaryPolicy Committee (MPC) is unlikely to beunder pressure from inflation to raise ratesquickly, while the impact of rate hikes …
14th July 2014
The disruption caused by the MMR, plus a lack of homes available for sale, has led to a marked slowdown in housing demand. That should help bring rates of house price inflation down from their current elevated levels. But with the FPC taking limited …
The June RICS survey provided further evidence that the housing market is cooling, with the new buyer enquiries, newly agreed sales and price expectations balances all easing. That said, stock levels are still low, and prices will see further gains. … …
10th July 2014
The month-on-month change in house prices recorded by the Halifax continues to be very volatile. While the drop in prices in June means values have now fallen in three of the past four months, a very large rise last month has left the annual rate of …
9th July 2014
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 case at present, implying that fears about a growing …
4th July 2014
The Nationwide reported another strong month of house price growth in June, with prices up 1% m/m. London continues to drive the rise – the pace of annual gains in the capital has now exceeded anything seen during the previous boom. … Nationwide House …
2nd July 2014
The drop in mortgage market activity seen since the turn of the year was extended into May. However, we think that approvals are unlikely to drop much further. Instead, we expect them to rise steadily during the second half of the year. … Mortgage …
30th June 2014
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
