Banks set for biggest mortgage lending period since 2007 - Plus all the latest property news

Posted by The Oracle Group on 25th July 2019 -

MORTGAGES

Banks set for biggest mortgage lending period since 2007

High street banks agreed more than £50bn of mortgages to homebuyers in the first half of the year, up 10% on the first six months of 2018 and setting up lenders for their biggest year since 2007, according to data from UK Finance. The loans were offered to almost a quarter of a million homebuyers in the first six months, up 6% on the first half of 2018. The number of mortgages approved for house purchase rose to 42,653 in June, on a seasonally-adjusted basis, up from 42,407 in May and close to April’s two-year high of 42,792. Analysts said the spike in approvals could be attributed to the UK avoiding crashing out of the EU at the end of March. UK Finance added that gross mortgage lending in June was 4% lower than the same month last year, at £21.9bn, as a result of a dip in remortgaging. The Daily Telegraph    The Times, Page: 48   City AM, Page: 8   The I, Page: 43

Bank offers mortgages through app

Mojo Mortgages, an online mortgage broker, has paired with Monzo Bank to trial a feature which allows consumers to access mortgage advice through its banking app. Throughout the trial, 2,000 Monzo customers can browse personalised mortgage options on their Monzo banking app and book an advice call with a broker from Mojo.FT Adviser

COMMERCIAL

Brexit hits commercial property

The Royal Institution of Chartered Surveyors’ latest commercial market survey shows demand for commercial property in London stayed in negative territory for the 12th quarter in a row. And demand from overseas investors has also continued to drop as Brexit looms, Niall Lindsay of surveyor Lapar said: “The key issue is Brexit. The market is less concerned about whether we remain in or out. It just wants certainty one way or the other.” Retail was responsible for pulling the overall figure below zero, with a net balance reading of minus 61 on the demand gauge. By contrast, surveyors reported seeing demand rise for industrial buildings, a large part of which was for warehouse space for online shopping. In Scotland, commercial property fell for a fifth consecutive quarter.City AM, Page: 8   The Press and Journal, Page: 34

Sharp fall in office investment blamed on Brexit nerves

Co-Star says Brexit uncertainty has dampened commercial property investment, with the £9.1bn spent in the three months to the end of June marking a 36% year-on-year dip and seven year low. Financial Times, Page: 3

FIRMS

Rental growth boosts Segro profits

Segro, the real estate investment firm specialising in warehouses, saw rental income push half-year revenue up. For the six months to 30 June, the company's adjusted pre-tax profit grew by a fifth to £132m. Revenue rose to £233.3m after a 3.7% rise in like-for-like net rental income. Net asset value grew by 4% to 665p per share, and the dividend was increased by 14% to 6.3p per share. Chief executive David Sleath said that demand for its warehouse space in Britain and Europe was strong and likely to grow in the coming year, with rental growth “likely be strongest in urban warehousing, where the supportive trends of the technological revolution and urbanisation combine”. The Times, Page: 44   City AM, Page: 8   Sky News   Financial Times, Page: 19

WeWork targets September IPO

The co-working giant WeWork is planning to go public this September, targeting a share sale of $3.5bn, according to insider sources, which would make it the second biggest initial public offering of the year. The targeted IPO date is much earlier than many investors had expected, but comes as the American flexible office provider enters talks with banks this week to finalise an asset-backed loan of $6bn – about $2bn more than originally sought, which would enable WeWork to reduce the amount it needs to raise in a stock market debut. The Times, Page: 45  

INDUSTRY

Land prices mask naked houses perks

Dougie Gerrard considers the positives and drawbacks of naked houses - those sold "unfinished" for prospective buyers to customise themselves. Non-profit Naked House, which champions homes built without the "trimmings" which amplify the price of fully-fitted homes, has already found support from London Mayor Sadiq Khan, however Louise Goodison, director of urban regeneration specialists Cazenove Architects, laments: “Unfinished housing is an interesting concept, but it doesn’t get close to addressing the key issue about the supply of housing, which is the price of land.”City AM

Myners calls for Lendy compensation

Former City minister Lord Myners has suggested the Financial Conduct Authority should consider compensating people mis-sold loans by failed peer-to-peer business Lendy, which crowdsourced loans to property developers. The FCA ordered Lendy to begin a remediation programme for ordinary investors in 2017, but large sums were yet to be paid out when the company collapsed in May this year. In a question to parliament Lord Myners asked if the regulator “intends to compensate those lenders who did not receive full remediation payments".The Times, Page: 39

HOUSING

Council grant for ‘model estate’ next to Grenfell

Lancaster West Estate residents, next to Grenfell Tower, are to receive a raft of property improvements thanks to a £57m fund made available by Kensington and Chelsea Council. The fund is on top of £32m pledged by the Government to support Kensington and Chelsea College and the Grenfell community and deputy council leader Kim Taylor-Smith asserted: “The work is guided by the priorities of residents... I’m proud this funding will help us to create a truly great place to live.”

Evening Standard

Aberdeen housing scheme could use hydrogen power cells

Plans have been submitted for more than 500 homes on the outskirts of Aberdeen, some of which could use "pioneering" hydrogen fuel cells. Cognito Oak is seeking permission in principle for about 550 houses near Cloverhill, Bridge of Don. The proposals include 30 homes being powered by hydrogen fuel cells. The developers said the pilot testing in a residential development would be a first for Scotland. The plans also include affordable housing, with community and sports facilities.BBC News

 

5% affordable housing development approved

Plans for a 753-home development in a 37-storey tower at Birmingham's Eastside Locks have been approved, despite criticism for only providing 5% of affordable housing. The developer, St Joseph, a subsidiary of Berkeley Group, argued it was instead investing heavily in the “public realm” of the site and providing any higher percentage would reduce profits and threaten the viability of the scheme. https://www.berkeleygroup.co.uk/developments The Birmingham Post, Page: 12

INDUSTRIAL

Aberdeen’ industrial sector continues to recover

Research from CBRE shows a recovery of the industrial sector in Aberdeen during 2018 has continued this year. Take-up during 2018 was the highest since the 2014 oil price crash, and in the first half of 2019, the take-up total was 254,751sq ft. While this was down by 23% on a year ago, the volume of transactions - a total of 46 deals - was the same as for the whole of 2016. CBRE said smaller deals continued to dominate the market during H1 2019, and that industrial supply in Aberdeen had “crept back up” following a dip in 2018.The Press and Journal, Page: 34

OTHER

Robert Jenrick appointed housing secretary

Following a Cabinet reshuffle by new prime minister Boris Johnson, relatively unknown Treasury minister Robert Jenrick, 37, who was only elected in 2014, has been appointed as the new housing and communities secretary in place of James Brokenshire, and becomes the youngest member of the Cabinet. Former work and pensions secretary Esther McVey has also been appointed as housing minister.BBC News   The Times   The Independent   The Guardian   Daily Mail   Daily Mirror   The Sun   City AM

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