September 04, 2013
House prices dip, says Nationwide...
House prices fell in August, Nationwide has reported.
The price slipped from £170,825 in July to £170,514 in August.
However, as faithfully reported by the media, Nationwide claimed that house prices actually rose by 0.6% in the month and were 3.5% higher than in August last year – when, for the record, Nationwide said the average UK house price was £164,729.
The answer of course lies in our old friend, 'seasonal adjustment'.
However, as EAT pointed out to Nationwide when we asked for a comment as to the difference between smoke, mirrors and seasonal adjustment, the fact is that by Nationwide's own 'actual' figures, house prices had gone down, not up.
August 14, 2013
scottfraser's guide to 20 Ways to...
Ahead of tonight's Buy-to-Let seminar, read our guide to becoming a successful landlord.
August 06, 2013
Novice landlords still pouring into...
New landlords are continuing to enter the buy-to-let sector, mortgage brokers have revealed.
Intermediaries said that 22% of their buy-to-let mortgage business in Q2 was from first-time landlords, the same level reported in Q1 and an increase on the 20% level reported for the same time period last year.
The percentage of cases from landlords looking to grow their rental portfolios increased during the quarter to 38% from 33% in Q1, whilst the number of landlords looking to remortgage fell from 33% to 28%.
More than half the intermediaries surveyed reported an improvement in the availability of buy-to-let finance, including 10% who said that, in their view, availability had improved significantly.
Intermediaries were also asked whether they had any cases of clients looking for let-to-buy mortgages, and 9% reported that they had dealt with such cases.
Let-to-buy mortgages are for situations where someone either cannot sell their house but would be able to rent it out to buy another, wants to return to live in the original property again at some point, or simply wants to get rental income from it while they purchase another home.
July 23, 2013
Help to Buy rallying call from government
The Chancellor, George Osborne, has called housebuilders and mortgage lenders to a meeting to discuss how the second part of the Help to Buy scheme will work.
The first phase of the scheme was launched four months ago and provides equity loans for buyers of new homes.
The next stage, to be brought in in January next year, will involve help for buyers of existing homes.
It will allow people to buy with just a 5% deposit.
The scheme is aimed at enabling more people to buy their homes.
The government will guarantee a proportion of the loan to give the banks greater confidence to lend.
July 15, 2013
Developers run out of bricks as house...
Asking prices for homes have risen to a record high – up on last month, which was itself an all-time record.
The new average asking price on Rightmove is now £253,658, rising from June's figure of £252,798.
It means that asking prices are now 4.8% above this time a year ago.
Rightmove is now doubling its forecast for annual house price inflation from 2% – although in the light of today's report, 4% looks extremely conservative.
Rightmove justifies its caution by saying that in recent years, gains in the first half of the year have been eaten away in the second half. For example, between June and December last year, asking prices fell by 7%.
But will the same happen this year? Probably not, says Rightmove. The report says: "The signs are that prices in 2013 will not dissipate as they have in recent years."
July 10, 2013
The Current Rental Market, by Nicholas...
The UK's rental market has seen strong growth over the last year with rents stabilising in the third quarter to an average rent of £970 per calendar month after an initial fall in price in August. The market has seen a 2 percent increase in rents from September 2011, just 0.6 percent below the rate of inflation over the year.
After an initial boost in rental prices in London as landlords looked to catch some of the surge in interest in short term lets in the capital over the Olympics, prices have now stabilised and increased slightly to a more realistic level after a fall in the second quarter of 2012. At present, prices in London remain over twice the national average, with those of properties in the South East also remaining higher than average. However the most encouraging rent increases have been seen in Yorkshire and Humber, with prices rising by 7 percent in the third quarter.
The latest Rightmove consumer rental forecast shows that 60 percent of tenants expect to be paying higher rents by this time next year, with the greatest expectation of rent increases in London and the South East.