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Monday, 29 September 2008
Figures released from the Bank of England show that new mortgage lending collpased in August. Just £143m was lent in August, which is just 5% of the July figure and just 2% of the figure August 2007.
The figures also show that just 32,000 new mortgages were granted in August, a new record low and 70% fewer than in August 2007.
Friday, 26 September 2008
A new report from RICs suggests that house sellers are being forced to accept offers 9% below their asking price.
With transactions at a 30 year low, the gap between the asking and selling price of a house or flat is widening. RICs expect this gap to widen asd the economic situation gets worse.
The largest gap between the asking and selling price is in the North of England where discounts average 12.5%.
The key here is to be realistic in what you think you house is now worth - it will certainly be less than last year and probably below what you would expect. This is particularly relevant if you are looking to sell your house quickly - if you have no time constraints, you might be able to hold out for a smaller discount - this is not going to happen if you need to move quickly.
The fall in house prices has accelerated in England and Wales, according to the Land Registry.
Its latest report shows that prices fell by 1.9% in August, taking the annual rate of price deflation to 4.6%. The average property now costs £174,493, £8,320 less than a year ago, with £3,871 of that drop occurring last month.
Prices in London fell by 3.2%, the first monthly fall since the Registry started publishing its figures in 2000.
Two months ago the Land Registry was suggesting that prices across England and Wales were, on average, still 0.1% higher than a year ago.
But with prices falling sharply in August, its monthly survey is starting to catch up fast with the surveys of lenders such as the Halifax and the Nationwide who have both reported that prices are down by 11% in the past year.
"Today's data from the Land Registry confirmed that house price falls are gathering momentum," said Seema Shah at Capital Economics.
"With transactions less than half of their level a year ago, coupled with the fact that the outlook for the economy is steadily deteriorating, the speed of this housing market correction still has the potential to step up a gear."
The continuing turbulence in the financial markets has meant that mortgage rates have risen again. Some banks had started to ease their rates over the past month, but the lack of liquidity in the financial makrets, with banks reluctant to lend to each other, has meant that interbank lending rates have risen, therby pushing up mortage costs again.
3 lenders are today raising their rates: HSBC, Woolwich and First Direct. HSBC is looking to focus on borrowers with higher deposits, so while rates with smaller deposits have risen, those with a 25% deposit will be able to access lower fixed rate deals.
Analysts are expecting other lenders to follow suit.
Wednesday, 24 September 2008
According to the Council of Mortgage Lenders (CML), trying to predict the short term future of house prices in the UK is 'futile'.
In May, the CML predicted prices would fall by 7% this year, which they now recognise is wide of the mark. The CML is now waiting for greater clarity before making any further forecasts, but commented that an expectation of prices falling by 25% from their peak a year ago, is now becoming the industry consensus.
It also predicts that the housing market is unlikely to recover from its current slump before 2010.
Mortgage lending fell yet again in August with approvals for purchases down by 64% on a year ago. Just 21,086 mortgages were granted, down from 58,564 in August 2007.
According to the British Bankers Association, there was a host of factors slowing the market including falling prices, uncertainty from the Government's anticipated announcement on stamp duty, economic pressures and tighter lending criteria.
The number of mortgage approvals for house purchases fell from 22,239 in July to the lowest figure since the figures began being collected in September 1997.
Approvals for remortgages were also down on 12 months ago, falling 28% to 47,765. This is the lowest level since 2001.
Monday, 15 September 2008
We've just added a new page to our website looking at how people can use quickmovenow.com's services to help negotiate a discount on their new house through sell cheap, buy cheaper.
In the current market, there are lots of bargain and discounted properties available, but to take advantage of these opportunities, most people will need first to sell their existing property - this is where quickmovenow.com can help.
Many potential homebuyers miss out on the best deals because they are unable to sell their current home in current market conditions. By selling your home to quickmovenow.com, you can become a proceedable and very attractive buyer to most sellers and house developers.
Obviously as a home buying company we have to buy at a discount to full value. However, if our discount can be offset against an onward purchase through negotiation it may well turn out to be a good time to take the plunge.
Visit our sell cheap, buy cheaper page for full details or call us now on 0800 068 3366.
Tuesday, 9 September 2008
In an interview yesterday, the head of Nationwide, Graham Beale, forecast that house prices will drop by 25% from their peak last autumn, with no sign of recovery until at least 2010.
This prediction implies that 2.5 million homeowners could be pushed into negative equity.
The latest report from RICS shows house sales at their lowest level since 1978, when RICS started their monthly survey. Some estate agents are selling fewer than one home per week for the past 3 months.
RICS reported house prices picking up slightly but they were still sharply down on a year ago.
Friday, 5 September 2008
Alistair Darling has finally made his move on stamp duty by increasing the 1% threshold from £125,000 to £175,000 for the next 12 months.
For weeks speculation has been rife over a possible stamp duty holiday. And many believe this resulted in further market deterioration, as buyers delayed purchases until a decision was made. How significant this was will never be known but one thing is for sure it didn’t help!
The most immediate affect of the duty change has unfortunately been negative. Several of our buyers have attempted to re-negotiate deals previously agreed just above the new threshold and so avoid stamp. We believe this is only a short term issue while the market realigns to the new threshold.
The market for properties just above stamp duty thresholds is always more difficult. And especially in current market conditions buyers are likely to try and negotiate sales below the new threshold to avoid stamp. Vendors marketing at levels between £175,000 and £200,000 could find the new threshold a real issue when it comes to selling.
However less tax is normally a good thing and we believe that the overall impact of the stamp duty change will be positive. The government estimates that around 50% of property sales are likely to be stamp duty exempt. Latest figures from the Halifax suggest average house prices have fallen to £174,178 so in coming months the proportion of sales under the threshold is likely to increase further.
Reduced overall buying costs will enable more people to buy now rather than having to wait to save more. Without duty buyers will have an extra £1,250 to £1,750 to put towards their deposit. Lenders are requiring larger deposits and bigger arrangement fees but with less tax buyers will have more cash to put towards their mortgage.
If properties start to sell below £175,000 those vendors will then be in a position to start buying higher value properties, and so give the whole market a lift and stop the rot.
That is the plan anyway. Overall we think it will just add a bit of temporary confidence to the market that will quickly dissipate on the next negative news from the housing market or wider economy.
So did it go far enough? Obviously wider stamp duty reductions would have helped more buyers and had more impact. However the main issue is the credit crisis and lack of lending not stamp duty. In short it was a good headline but he was just tinkering around the edges.
What will happen in September 2009? If the market hasn’t improved significantly then return of the £125,000 threshold could halt any fledging recovery and put the market back months.
Accordig to the property website Globrix, most properties for sale in the UK have been on the market for more than 90 days. The proportion of unsold properties on the market for more than 90 days has risen from 25% to 53% in August.
Consumer confidence, falling prices and lack of available mortgages means that the property market is stagnating, with properties therefore taking longer to sell.
This is exactly the situation in which quickmovenow.com can help home owners. If you are stuggling to sell your property or if it's been on the market for a long time, then call us. As the UK's leading professional house buying company, we will purchase your house, quickly, often within 7 days.
Thursday, 4 September 2008
Latest figures from the Halifax shows a fall in house prices from last August of 10.9%. This is the first double digit fall in prices since 1983.
The Halifax said that property prices dropped 1.8% in August compared with July, leaving the cost of an average home in the UK at £174,178.
It said market conditions would remain "challenging" in the months ahead, despite government help for buyers.
Tuesday, 2 September 2008
There has been much speculation over the past few weeks as to whether the government would axe stamp duty on property purchase to help kick-start the housing market. Well, it finalyl announced its decision today, axing stamp duty for one year for properties under £175,000.
From Wednesday morning, the level at which stamp duty is paid will be increased from £125,000 to £175,000. The saving on a home costing £175,000 will be £1,750. The government says that 50% of all property sales will now be exempt from stamp duty.
The government has also announced 'free' loans for first-time buyers, many of whom are struggling to raise enough money to pay the increased deposit required by the mortgage lenders. Households earning less than £60,000 will be offered loans free of charge for the first five years on new properties. This 'HomeBuy Direct' scheme will be co-funded by the state and house builders.
Monday, 1 September 2008
Figures released today by the Bank of England show mortgage approvals hitting a new low. There were just 33,000 new mortgage approvals in July 2008, down by 71% on July 2007.
For the second month, building socities have seen their mortgage levels contract, with more people paying off their loans than new lending by £79m.
The demand for mortgages has dropped with the falls in house prices, reducing people's confidence, and the rise in mortgage rates because of the credit crunch.
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