New Sales Process Launched for Residential Leasehold Properties in the UK

This article by the Property Wire on October 10th, 2013 discusses the introduction of a new sales process welcomed by the British Property Federation.

The British Property Federation has welcomed the introduction of a new property sales process which will reduce leasehold transaction times by five to 10 days and save UK consumers a combined total of over a million days each year.
 
The new process, based on a standardised questionnaire for the industry has been created by the BPF and all the major trade bodies, including The Law Society and the Royal Institution of Chartered Surveyors (RICS), facilitated by Move with Us, and will be available to all parties in the process.

The BPF pointed out that buyers and sellers of leasehold properties have experienced added complications and expensive delays because of differing information requirements from both the buyer’s and seller’s conveyancers meaning the landlord or managing agent has to deal with a different set of enquiries every time a leasehold property is sold.

By creating an approved set of enquiries for leasehold properties both landlords and managing agents can introduce systems to collate the information safe in the knowledge that both the buyer’s and seller’s conveyancers will accept it, saving an estimated five to 10 working days on average. Consumers will also save money as the additional requests for information will only be required where an issue is revealed which requires further investigation.

‘It is great to see that the whole residential leasehold sector pulling together and delivering a benefit to its customers,’ said Ian Fletcher, director of policy at the British Property Federation.

‘The commercial leasehold sector has had standard enquiries for 10 years and seen the advantages flowing from a more efficient conveyancing process. The same will be true of these residential enquiries and we will be promoting them amongst our membership as the standard for the sector,’ he added.

The new industry created and approved Leasehold Property Enquiries, Form LPE1 will be available from 10 October and the overall concept has been approved by the Council of Mortgage Lenders (CML) and The Building Societies Association (BSA).

Landlords, managing agents and conveyancers interested in accessing the new leasehold enquiries form should contact Beth de Montjoie Rudolf at Move with Us.

Article Source: http://www.propertywire.com/news/europe/uk-leaeshold-property-sales-201310108334.html

Prime Property Prices in Central London Still Rising

This article of the Property Wire on August 26, 2013 shows that prime property prices in central London continued to rise in August but there are indications that buyers are becoming more resistant to continued price rises, especially at the top of the market.
 
The latest central London sales index from Knight Frank shows that property prices in London’s best postcodes increased by 0.6% this month and so far this year prices have risen by 4.8%.

Marylebone and Notting Hill recorded the largest rises over the course of the month, up by 1.5% and 1% respectively. Islington, City Fringe and Hyde Park all reported price growth of 0.9% in August.

In spite of record prices, enquiry levels are still robust and interest among prospective buyers remains high across central London. The number of new applicants is up by 33.9% over the year to date compared to the same period in 2012 and the number of property viewings conducted over this period is up by 18.5%.

At the same time annual price growth for properties in Greater London is now outstripping prime central London, boosted by the city’s continued economic recovery and government policy.

Figures from the Office of National Statistics show that property prices in Greater London have risen by 8.1% over the past 12 months. In comparison the Knight Frank Prime Central London Sales Index is up by 7% on an annual basis.

Price rises in prime central London are primarily being driven by homes in the sub £1 million and £1 million to £2.5 million price bracket.

Homes in these price brackets increased by around 1% in August and are up by 8.7% and 7% respectively over the year to date. Comparatively, homes in the £5 million to £10 million and the £10 million plus price brackets increased in value by 0% and 0.2% month on month and are up by 2.6% and 1.6% respectively so far in 2013.

Knight Frank says that key factors driving price growth and interest include the city’s reputation as a safe haven for investment, and the value of the pound. However the firm’s global head of residential research Liam Bailey pointed out that performance has outperformed forecasts.

‘Last year, we forecast that prices would remain unchanged in 2013, marking an end to the strong run the market has seen since early 2009. Our rationale was that the increase in Stamp Duty would have an impact on the top end of the market and there would be resistance to price growth from domestic and international purchasers,’ he explained.

‘In the event we overstated the negative impact of the 5% to 7% Stamp Duty rise for £2 million plus properties. The further weakening in sterling in the first half of the year helped to boost overseas interest and domestic demand has been aided by London’s continued economic recovery and, arguably, from the government’s Help to Buy scheme, which was launched at the end of the first quarter this year and has boosted sentiment across the market,’ he added.

He also said that while Help to Buy, with its £600,000 valuation cap is a more significant factor in the wider mainstream market, rising housing market sentiment, as reported in the firm’s latest House Price Sentiment Index, is infectious across markets and price brackets and is likely to act as a positive influence in terms of future pricing, even in London’s prime
market segments.

‘We have therefore raised our forecast for prime central London price growth for 2013 to 6%,’ he added.

Article Source: http://www.propertywire.com/news/europe/prime-london-property-prices-201308268161.html

Prime Central London Property Prices set for Further Growth in 2013

This recent article by the Property Wire shows how the property houses continued to increase in Prime Central London.

Tuesday, 30 July 2013 Property prices in prime central London increased again in July, up by 0.5% month on month and so far in 2013, prices for the very best homes in London have increased by 4.2%.

And over the last 12 months prices have grown by 7%, according to the latest prime central London index from property firm Knight Frank.

The strongest price growth has been in the sub £1 million market and the biggest rises in June were in Islington and Marylebone where prices increased by 1.1% and the South Bank where they increased by 1.5%.

‘In spite of new record prices, interest among prospective buyers remains high. Property viewings in prime central London over the year to date are up by 15% compared to the same period in 2012 and the number of new applicants is up by a similar level. Rising demand has translated into higher sales volumes, up by 8.2% year on year,’ said global head of residential research Liam Bailey.

‘Last year, we forecast that prices would remain unchanged in 2013, marking an end to the strong run the market has seen since early 2009. Our rationale was that the increase in Stamp Duty would have an impact on the top end of the market and there would be resistance to price growth from domestic and international purchasers,’ he explained.

‘In the event we overstated the negative impact of the 5% to 7% Stamp Duty rise for £2 million plus properties. The further weakening in sterling in the first half of the year helped to boost overseas interest and domestic demand has been aided by London’s economic recovery and arguably from the government’s Help to Buy scheme, which was launched at the end of the first quarter of this year. We have therefore raised our forecast for prime central London price growth for 2013 to 6%,’ he added.

The report also shows that there remain differences in performance between locations and price bands across prime central London. In July, property in the sub £1 million bracket increased in value by 1%, while homes in the £1 million to £2.5 million price bracket climbed 0.6%. Comparatively, the price of super prime homes in the £10 million plus sector remained unchanged over the course of the month.

Article Source: http://www.propertywire.com/news/europe/prime-central-london-property-201307308059.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