US Consumer Confidence Drops as House Prices Rise at the Fastest Rate in 7 Years

This article by AFP of The Telegraph on September 24th, 2013 reveals the decrease in consumer confidence as house prices rise and shortage in jobs and earnings resurfaced.

US consumer confidence fell slightly in September as Americans grew more wary about the outlook in coming months, according to a closely watched report. 

The Conference Board said its consumer confidence index fell to 79.7 in September, down from a revised 81.8 in August.

Though a decline was expected for September, the figure was weaker than the 80.0 consensus estimate.

"This is in line... with buyers awaiting a battle among lawmakers over raising the Treasury debt ceiling that could threaten a government shutdown," said Nate Kelley of Moody's Analytics.

The Present Situation Index rose to 73.2 in September from 70.9 in August.

The Expectations Index, indicating consumers' views on the outlook six months into the future, dived to 84.1 from 89.0 last month.

"Consumer confidence decreased in September as concerns about the short-term outlook for both jobs and earnings resurfaced, while expectations for future business conditions were little changed," said Lynn Franco, the Conference Board's director of economic indicators.

"While overall economic conditions appear to have moderately improved, consumers are uncertain that the momentum can be sustained in the months ahead."

Consumers' outlook on jobs and incomes in the coming months darkened.

The number of consumers expecting more jobs fell to 16.9pc from 17.5pc in August, while those anticipating fewer jobs rose to 19.7pc from 17.2pc.

Income expectations were sharply lower. Those expecting their incomes to increase tumbled to 15.4pc from 17.5pc.

The concerns about lower incomes could crimp consumer spending, the engine of US economic growth.

The decline in expectations "also gibes with our call for a relatively weak holiday shopping season this year," said Moody's Kelley.

But while consumer confidence declined, a closely-watched survey of house prices across 20 major US cities showed that property values increased 12.4pc in the year to July. The rise, the highest in seven years, was widely expected by economists, but some foresee a cooling over the rest of the year as mortgage rates climb.

Lawrence Yun, chief economist at the Realtors group, said the surge in sales in August was probably the “last hurrah” for the next year to 18 months as higher prices and the jump in mortgage rates hurts affordability for some buyers.

Article Source: http://www.telegraph.co.uk/finance/economics/10331727/US-consumer-confidence-slips-as-house-prices-rise-at-the-fastest-rate-in-seven-years.html

Tips to Increase the Value of Your Home

On this article by Express on September 20th, 2013 shows the different effective ways to increase the value of your property.

According to national estate agent Strutt & Parker the top five ways to increase the value of your home are as follows:

1. Room to Improve

Adding an extension is the most costly outlay but could increase the value of your home by up to 20 per cent.
2. Tap into Healthy Returns

The kitchen is the hub of the home. Creating a real asset by modernizing it can help you achieve your target asking price.
3. No Reason to Blow Hot and Cold

The prospect of upgrading a bathroom may deter some buyers but a new bathroom can be a prized asset.

4. Splash out on this Upgrade

Installing an en suite or wet room will increase the property’s appeal.
5. Appealing Aspects
An attractive garden has been proven to add value to a property. 

Article Source: http://www.express.co.uk/news/property/430774/Five-tips-to-increase-the-value-of-your-home

Property Market Slide 'Arrested'

In this article by Belfash Telegraph.co.uk on August 30th, 2013 said that research shows that the number of properties sold in Dublin rose at a three year high.
 

The number of properties sold in Dublin soared by 13% in the first half of the year, research showed.

A study found 3,671 homes and apartments were snapped up in the capital by the end of July, compared to 3,252 in the same period last year and 2,409 in 2011.

The value of transactions was also at a three year high with almost 1.2 billion euro raised from sales, up a quarter from 965 million a year earlier.

MyHome.ie revealed while the number of transactions rose in 18 areas across the city and county, they fell in some of the most popular places to buy because of lack of supply.
Dublin 14 - which covers from Churchtown, Rathgar and Rathfarnham - boasted the highest number of sales at 224, but was down 5% on last year.

Elsewhere 207 properties changed hands in west Dublin, a 20% drop from last year, and Dublin 16 had suffered a 2% fall despite 217 sales confirmed.

Angela Keegan, managing director, said the main reason behind the fall in certain areas was a lack of suitable stock.

"These figures reflect the shortage of family homes coming to the market," she said.
"Many people are holding onto their tracker mortgages rather than upsizing but it's clear we need to see more new developments coming on stream in the greater Dublin area."

The property website analysed official figures from the property price register, which last week revealed the cost of a home in Dublin jumped by 8% over the last year. The Central Statistics Office said the figure caused national prices to go up 2.3% despite a drop in sale prices outside the capital.

The figures showed more than two thirds of the 23 postcode areas and Dublin county had a record number of transactions for the first half the year since 2010.

However it is believed the housing market in the first few months of 2013 may have been affected by buyers availing of mortgage interest relief which ended at the end of 2012.

More recent data showed there have been 4,743 transactions in Dublin up to August, compared to a total of 8,984 for all of 2012.

Ms Keegan said the figures were encouraging after six years of falling prices.

"That trend could not continue and the fact it has been arrested in Dublin and prices are beginning to stabilise or rise in most areas is a positive development for the property market in the capital," she added.

Article Source: http://www.belfasttelegraph.co.uk/news/local-national/republic-of-ireland/property-market-slide-arrested-29537489.html

 

Mortgages Up By Third as Housing Sales Soar

Sarah O'Grady of Express discusses the banks' approved mortgages is third higher compared to last year as the housing market continues to step up according to this article on 24th August, 2013.

The number of mortgages approved by banks is a third higher than a year ago as the housing market revival continues to gather pace.

Some 37,200 approvals for house purchases worth a total of £5.7billion got the green light in July, the British Bankers’ Association reported.

This was only slightly down on a 17-month high of 37,337 the previous month.

The BBA said the “stronger pattern” seen in the mortgage market since the start of the year has continued into the summer.

Mortgage approvals to home buyers are 31 per cent higher than in the same period last year and re-mortgaging approvals are 40 per cent higher.

However, overall mortgage lending remains “subdued” because homeowners are making high repayments on their loans, the BBA said.

Various Government schemes to boost the housing market mean several mortgage lenders have been offering their lowest ever rates.

With poor returns generally on offer on savings, this has made it more attractive for people to use any spare cash to pay down their mortgage debt.

BBA statistics director David Dooks said: ­“Mortgage activity has strengthened during 2013 with the help of Government schemes. But high ­repayments and redemptions mean that we are not seeing increases in net mortgage borrowing for the high street banks.”

Jonathan Harris, director of mortgage broker Anderson Harris, said that despite the uplift in activity, house sales are still far lower than they were at the height of the boom years.

Article Source: http://www.express.co.uk/news/property/424289/Mortgages-up-by-third-as-housing-sales-soar

Would You Live in a House of Horrors?

Notorious serial killing necrophiliac Dennis Nilsen's muswell hill flat is up for sale. Would you consider buying this property where the serial killer butchered his victims? This horrifying article by John Hall of The Independent on 15th of August, 2013 reveals the terrifying history of the house.

It’s a fairly innocuous note at the end of a property listing that quietly alludes to the shocking history of the bargain price flat up for sale.

And the history of Flat 23D in leafy Cranley Gardens, Muswell Hill is nothing if not shocking.

For this is not just the attic apartment where notorious serial killing necrophile Dennis Nilsen butchered his victims, it is also the property where the stench of drains clogged with rotting body parts eventually led to his capture.

It would appear a number of prospective buyers may already have “researched the history of the property” however, as over the last fortnight the already bargain asking price of £265,000 has been slashed by a further £25,000 to £240,000.

Similar properties in the area are listed for sale at over £385,000.

Described as a “charming” property that is “centrally located and within walking distance to Muswell Hill Broadway and its bars and cafes”, the flat is a top floor, one bedroom property with a private balcony, living room, kitchen, shower room and separate toilet.

It also comes with some pretty gruesome historical baggage.

In October 1981, Dennis Nilsen moved to the Cranley Gardens property having already murdered at least 12 young men – many of them homeless homosexuals he met in bars or on the streets and lured to his home with the promise of food, alcohol and shelter.

In previous properties Nilsen had had access to outside space, so after killing his victims and often engaging in sexual acts with their corpses, he would dismember them and either burn the remains on a bonfire, or leave entrails in the garden for foxes to eat.

Upon moving into the Cranley Gardens property, Nilsen showed no sign of bringing a halt to his killing. It is believed he murdered at least four more men in the attic flat that is now up for sale.

As the current property listing states, the flat has no access to a garden - unlike Nielsen’s previous homes – which led to him storing his victims’ mutilated remains in bin bags stuffed into wardrobes and cupboards around the flat.

Once the stench of the rotting corpses began to attract the attention of neighbours, Nilsen attempted to dispose of them by flushing the body parts down the toilet.

The remains eventually led to a blocked sewage system and when drain clearage company Dyno-Rod visited the property, they discovered a flesh-like substance being eaten by rats. Although they reported the blockage as suspicious, the drain inspectors removed the substance, assuming it to be a odd but not necessarily sinister build-up of chicken flesh and bones.

The drain inspector’s supervisor thought it best to report the substance to police, however, and on closer inspection pathologist Professor David Bowen, found it be a build-up of human remains.

Nilsen was arrested as he returned home from work, after officers entered the property and smelt rotting flesh coming from his flat. He calmly told police where in the property they would find remains, adding that he had killed “15 or 16 since 1978”.

On a search of the apartment, the remains of three men were found in a wardrobe, tea chest and bathroom drawer. His previous address was subsequently searched, and more body parts were found there too.

Nilsen pleaded guilty by way of diminished responsibility in order to be convicted of manslaughter, but on November 4 1983 he was convicted of six counts of murder and two attempted murders.

He was initially given a minimum 25-year prison sentence, but this was later changed to a whole-life sentence. Last month the European Court of Human Rights ruled the whole-life tariff illegal, however, meaning the 67-year-old must now be given a minimum term by the High Court.

Article Source: http://www.independent.co.uk/news/uk/home-news/would-you-live-in-a-house-of-horrors-muswell-hill-flat-where-serial-killing-necrophiliac-dennis-nilsen-butchered-victims-goes-up-for-sale-8763510.html

Buy to Let Lending in UK Rises Due to Strong Rental Demand

This recent article by the Property Wire on August 8, 2013 shows the continuing recovery of buy to let lending investors because of the ongoing rental demand according to CML.

Lenders in the UK advanced 40,000 mortgages, worth £5.1 billion, to buy to let property investors in the second quarter of 2013, according to the latest data published today (Thursday 08 August) by the Council of Mortgage Lenders. Both the number of buy to let loans, and the value of lending, were the highest since the third quarter of 2008, the data also shows. Buy to let lending is continuing to recover strongly, but from a low base. The number of loans advanced in the second quarter was 19% higher by volume and 21% higher by value than in preceding three months when lenders advanced 33,500 mortgages, worth £4.2 billion. Year on year, buy to let lending was 19% higher by volume and 31% higher by value compared to 33,600 loans in the second quarter of 2012, worth £3.9 billion. Lending for house purchase accounted for around half the loans advanced, and increased by 15% by volume and 19% by value over the preceding quarter. But the growth in remortgaging was stronger, with an increase over the same period of 24% by volume and 29% by value. The CML said that this growth in remortaging partly reflects improved conditions in funding markets and more widespread availability of mortgage credit. By the end of June, buy to let mortgages accounted for 13.3% of outstanding lending in the UK, up from 13.1% in the preceding quarter and 12.9% a year earlier. The number of outstanding mortgages totalled 1.48 million, worth £168.5 billion. Buy to let mortgages in arrears of over three months accounted for 8.4% of the total, up slightly from 8.3% in the preceding quarter but down from 9.7% a year earlier. The possession rate, at 0.09%, was higher than the 0.07% in the wider mortgage market, but fell from 0.11% in the previous quarter. ‘Strong rental demand is contributing to the continuing expansion of the buy to let sector, but growth is also being helped by improved conditions in funding markets and more widespread availability of mortgages,’ said the CML's head of policy Jackie Bennett. ‘These conditions are creating more opportunities for landlords to remortgage, as well as helping to fund increased activity in the mortgage market more generally. This spring, we have seen the highest levels of lending to first time buyers since 2007, alongside the continuing recovery in the buy to let market,’ she added. The figures highlight that the buy to let sector continues to boom, according to Stuart Law, chief executive officer of Assetz. ‘We are seeing more people approaching pensionable age investing in order to bolster their retirement income at a time when the Bank of England indicates base rates, and therefore savings rates, will stay low for at least three more years,’ he said. ‘While the growth of the sector in London is clear to see, the house price ripple effect is only just beginning now in the North where there are excellent opportunities for investment, particularly in key cities like Manchester, Liverpool, Birmingham and their suburbs. Many Southern investors are broadly unaware of the lucrative yields available in northern market, at prices that represent the beginning of the next cycle,’ he added. Article Source: http://www.propertywire.com/news/europe/uk-buy-let-lending-201308088098.html

Buoyant Mortgage Lending Figures Signal Meaningful Recovery in UK Property Market

This June 18, 2013 article by the Property Wire reveals the total gross mortgage lending in the UK in June increase to  £15 billion, the highest monthly estimate since October 2008, according to the latest data report from the Council of Mortgage Lenders.
 
It is a rise of 2% from £14.7 billion in May and 26% higher than the total of £11.9 billion in June 2012. And gross lending for the second quarter of 2013 was an estimated £42 billion, a 24% increase from the previous three months and is the highest quarterly estimate since the end of 2008.

‘Improvements in the cost and availability of mortgage credit are underpinning a meaningful recovery in the housing market. In recent months, we have seen the strongest performance for mortgage lending since 2008,’ said CML chief economist Bob Pannell.

‘However, although the pace of first time buyer activity is approaching a quarter of a million per annum, it is worth bearing in mind that this is still barely half of activity rates a decade earlier, and so far below what might be considered normal levels,’ he added.

But it is slow progress, according to David Brown, commercial director of LSL Property Services. ‘A whole year of months like June would be needed to bring gross mortgage lending to half its 2007 peak. But by any measure, 26% annual growth is definitely a positive sign,’ he pointed out.

‘What’s especially encouraging are the lower rates that are slowly trickling through to borrowers with less equity. More first time buyers are very gradually emerging into the world of home ownership,’ he said.

‘Of course it’s still very early days, and the number of people renting is still rising too. Wage growth is only creeping slowly towards buoyant inflation, and measly savings rates are a serious obstacle to raising a deposit. But so long as this isn’t a false dawn, mortgage availability is going in the right direction,’ he added.

Duncan Kreeger, director of secured peer to peer lender West One Loans,  explained that comparisons with October 2008 do nothing to hide the fact that mortgage lending in the UK still has a long way to go. ‘In October 2008 the global economy was in free fall.  The financial crisis had just hit its very peak. In the US emergency measures were agreed by Congress to prevent economic collapse. In the UK stock markets were tumbling and millions of people saw their financial future melt in front of their eyes,’ he said.

He believes that unwieldy high street banks might never recover the levels of business they saw before the collapse and the largest lenders are still losing market share to new forms of finance. ‘We expect that to continue and we believe it’s a positive trend. New financial models will be better for consumers, better for business, and a better way to prevent economic disasters like October 2008,’ he added.

Paul Hunt, managing director of Phoebus Software, a specialist in banking technology, said that although a lot of new buyers are still struggling to overcome the deposit hurdle, lenders are offering great rates and attractive mortgage packages.

‘The increasing confidence of the banks is shining through. The mortgage market is gaining strength. The government has boosted first time buyer activity successfully and there’s been a vast improvement in the availability of good mortgage deals for high LTV borrowers,’ he explained.

‘There is more competition amongst lenders and that’s delivering better value products to borrowers and boosting opportunities for first time buyers. And with lending up, rays of light have entered the economic picture. But the government’s role is crucial if mortgage lending targets are to be met and the market is to maintain its forward momentum,’ he added.
David Newnes, director of LSL Property Services, owners of Your Move and Reeds Rains, believes that the improving economic climate is boosting the confidence of banks and that’s translating into more lending and that increased supply of mortgages is being eagerly consumed by potential buyers with a strong appetite for borrowing.

'Lenders' efforts to bolster first time buyer activity are clearly having a positive effect, with more competitive mortgage rates and higher loan to values leading to a conspicuous jump in first time buyers loans. The spotlight is focused on the Help to Buy scheme and whether it will feed through into a noteworthy jump in lending figures this year. Hopefully these efforts will be bolstered further by the Government's Funding for Lending programme,' he explained.

'Together these initiatives will continue to boost competition among lenders and help stimulate greater activity in the vital lower tiers of the market even further by making more cheap funding available for mortgages. At this rate, lenders will be more likely to offer better rates on 90 to 95% loans and this will hopefully reach out to an even wider audience of first time buyers struggling to put together a deposit.The only way major leaps will be made is if the Government and lenders sharpen the focus for their mortgage targets onto the first time buyer market,' he added.

According to Stuart Law, chief executive of peer to peer lender Assetz Capital, the latest CML figures are extremely positive news for main stream mortgage lending as funding for lending frees up new low cost capital for banks. 'Help to buy is already helping new build sales and will massively help the second hand home buyers when the mortgage guarantee scheme comes on stream next January,' he said.

He also said that while all this activity will drive new construction and hence jobs and GDP growth, small businesses, also a huge contributor to the economy, are not being allowed to share in this lending frenzy. 'Banks have turned their back on the once profitable SME business lending leaving it to the UK’s peer to peer lending market to fill the gap. Appetite for investors is huge, encouraged by the prospect of regulation in April 2014, and we are advocating a return to back to roots banking to help small businesses grow instead of being denied the credit, on offer in spades to the mortgage market, that they need to expand,' he added.

Article by: Property Wire
Article Source: http://www.propertywire.com/news/europe/uk-mortgage-lending-cml-201307188021.html