Latest industry news
Figures for November’s housing market released by Halifax this morning have revealed the biggest monthly rise in house prices since February with average prices 2.1% higher than the same month a year earlier.
According to the lender, on a monthly basis, house prices rose by 1.0% and during the latest quarter (September to November) house prices were 0.2% higher than in the preceding three months (June to August)
The proportion of first-time buyer house purchases increased by two percentage points in 2019 to 27%, according to the latest figures from NAEA Propertymark.
Over the course of 2019, NAEA’s research shows that demand was slightly higher than last year with an average of 320 house buyers registered per branch, compared to 318 on average throughout 2018. Looking back over the last decade, demand is up by 16%, from 275 per branch in 2009.
UK house prices saw a 0.5% monthly rise in November, while annual growth remained subdued at 0.8%, according to the latest Nationwide house price index.
41% of adults with adverse credit who plan to buy a house in the next 12 months expect to cut back on recreational activities to improve their credit rating before or during the application process, according to research from Pepper Money.
The survey questioned 600 people who have experienced credit problems, including missed payments, CCJs, defaults, unsecured arrears and secured arrears, in the last three years.
Supply and demand both fell in October as political and economic uncertainty continues, according to the latest research from NAEA Propertymark.
The number of sales made to first-time buyers decreased to 27% from 30% in September. However this is an increase of four percentage points from October 2018 when it stood at 23%.
The number of properties available per member branch fell in October, from 40 in September to 39, the lowest amount seen since June. Year-on-year, the supply of housing is down, falling from 40 in October 2018.
22% of those who take out a retirement interest-only (RIO) mortgage do so to pay off an existing mortgage, according to research from Hodge.
Buying another property is the second most popular reason for RIO borrowing, at 20%, followed by debt consolidation at 18%.
16% will use their RIO mortgage to provide a family gift and 14% plan to make home improvements.
19% of people are spending more than half of their monthly net household income on housing costs such as mortgage or rent payments, utility bills and council tax, with 4% spending over 75%, according to research by Engen Group.
The average amount spent on housing costs is 34%, in line with recommendations that no more than 35% of a person’s total income should be spent on mortgage/rent and bills.
However Engen’s research found 39% of people spend more than this, rising to 47% for those aged 18 – 34.
The Conservative Party have pledged to introduce “lifetime” fixed rate mortgages if they win next month’s General Election.
Under the plan, buyers would need a 5% deposit and the mortgage repayments would then remain the same throughout the lifetime of the mortgage.
As part of the announcement, the Conservatives also promised to launch a ‘First Home’ scheme, giving first-time buyers a 30% discount on new homes in their local area.
It seems the days of people retiring at 65 and enjoying their golden years mortgage-free are becoming an increasingly distant dream for many people.
Paying off the mortgage by the time they’re 65 has been the financial goal for generations of homeowners, but recent research from Hargreaves Lansdown has found that nearly 16% of householders now say they will either be aged over 65 by the time they pay off their mortgage or will never clear their loan. This comes after the FCA predicted earlier this year in its annual Sector Views report that 40% of borrowers who took out a mortgage in 2017 will be aged over 65 when their mortgage matures.
Lender competition caused a surge in the number of borrowers choosing two-year fixed rate remortgage products in September, according to LMS research.
Purchases of five-year fixes dropped from 48% to 43%, while there was a significant increase for two-year fixes which rose from 35% to 42%.
Additionally, just over half of borrowers predict that interest rates will rise within the next 12 months, with 55% saying they think the cost of borrowing will increase by this time next year.