https://www.thelandsite.co.uk/files/articles/383ada345d2c11e98dac024b03131eda/iStock-1041601982.jpg 1185

Mortgage approvals rise- A daily roundup of all the key property news

Posted by The Oracle Group on 30th July 2019 -

title

MORTGAGES

Mortgage approvals rise

The number of UK mortgage approvals hit 66,400 in June, up from 65,650 in May, according to the Bank of England's latest data, above economists’ expectations and the highest number since January. In addition to a small boost from dodging a no-deal Brexit in March, record employment, sustained wage growth and low interest rates have boosted demand. Hansen Lu, a property specialist at Capital Economics, said: “The outlook for mortgage lending is quite heavily dependent on the Brexit outcome. Assuming a no-deal Brexit is avoided, we expect mortgage approvals to end the year down by 1%, before recovering modestly in 2020 and 2021. Annual lending growth to UK consumers slowed to 5.5% in June however, from 5.7% in May, the slowest rate since April 2014.”City AM   Financial Times, Page: 2   Daily Mail   The Times, Page: 40   I, Page: 42

Mortgage product fees fall over past year

Mortgage product fees have fallen over the past year, amid increased competition from providers, data from Moneyfacts has shown - despite the Bank of England raising the base rate by 0.25% in August 2018. The average 2-year fix has dropped from 2.53% in July last year to 2.49% this month. “The mortgage market has recently boasted some of the lowest mortgage rates on record, which is fantastic news for borrowers, but our latest research into the average product fee charged in the popular 2-year fixed rate market has shown that this too has fallen over the past 12 months,” commented Darren Cook, finance expert at Moneyfacts.Mortgage Introducer

Increase in ‘security deposit’ mortgages

The number of deposit mortgages available on the market has risen by 40% in the past two years, according to Defaqto. The financial services firm counted 28 such mortgages, which offer the parent or guarantor a less risky way to help the borrower afford a home, available on the market now than two years ago, and said that 13 providers now offer some form of security deposit mortgage, compared to eight providers in 2017. “With property prices so high, some young people are having to turn to family in order to get their first home. Not many people have the cash to put down a deposit for a relative’s home and security deposit mortgages can be a good alternative for them,” said Katie Brain, insight analyst at Defaqto.Your Mortgage

FIRMS

CVAs and administrations hit Hammerson

Hammerson has reported net rental income at its UK flagship sites was down 6.8% in the half-year period, as retailers’ woes continued to dent the firm’s performance. In the first six months of the year, net rental income (NRI) across the company fell 0.1% year-on-year - while it fell 6.8% at flagship destinations, so-called premium outlets enjoyed an 11.1% NRI rise. Adjusted profit was down 10.5% at £107.4m. Chief executive David Atkins acknowledged that the UK retail landscape "is undoubtedly challenging" and that traditional high street fashion is under pressure, adding: “However, our focus on shifting our line-up towards categories with greater customer appeal and rental growth potential has resulted in over 90% of new leasing to leading consumer and food and beverage brands." Hammerson's announcement that it has sold a 75% stake in Parisian shopping centre Italie Deux for £423m brought its net debt to £3.1bn.City AM   Evening Standard   Financial Times, Page: 2   The Independent, Page: 54   The Sun, Page: 43   The Daily Telegraph, Page: 28   Daily Mirror, Page: 40   I, Page: 41   The Times, Page: 41

INDUSTRY

Southern house price growth weakest since 2012

The average price growth across for southern cities is now at its lowest level in seven years, according to the June Zoopla UK Cities House Price Index. The majority of the seven cities registering less than 1% in house price growth this month are located within southern England, with growth ranging between 2% in Bristol to -0.3% in Cambridge. “There is a clear imbalance between supply and demand for housing across southern cities and this explains why house price growth in these cities is at its lowest level since 2012,” said Richard Donnell, research and insight director at Zoopla.Mortgage Introducer

Platform aims to accelerate searches

The Telegraph profiles SearchFlow, a new platform which aims to speed up the ordering and delivery of property searches for solicitors. Customer experience manager Katriona O’Hare explains: “Utilising Microsoft Power BI to bring together all our different inboxes, we created dashboards that provide real-time performance management. We can monitor orders, track KPIs and benchmark all activities against service-level agreements, even using our mobile phones."The Daily Telegraph

COMMERCIAL

Lagging high street hits commercial rents

The British prime commercial property market has seen its largest quarterly slide in rents for a decade amid declining demand for high street shops and shopping centres, according to CBRE. Rents for high street shops, shopping centres and retail warehouses fell by 1.1%, 1.2% and 3.1% respectively in Q2 of 2019, CBRE said in its latest quarterly index. Retail warehouse rents fell by more than any other property asset class in the quarter.The Times, Page: 41

INTERNATIONAL

EU watchdog: valuations are too high

The EU’s financial watchdog has warned that housing and commercial property are showing signs of being overvalued across the continent. "High investor demand and the search for higher yields, which have been a major source of the commercial real estate price increase, particularly in prime markets, have potentially made investors vulnerable to a repricing of risk premia," it warned, adding that that many countries within the block had experienced big commercial property increases in recent years and that signs of overvaluation had been present in prime markets in several of them.The Times, Page: 41

PRIME

Decline in central London prime transactions

June saw a 13.1% year-on-year drop in annual transactions in prime central London, according to the LCPAca Resi Index for June. The figures also revealed that transactions are still 12.5% less than the very lowest point in the global financial crisis, but in the short-term there has been a marked quarterly increase of 23%.Mortgage Introducer

ECONOMY

Threat of no-deal sends pound to 28-month low

A hardening of rhetoric from the Boris Johnson government over Brexit pushed the pound to a 28-month low against the dollar on Monday. Sterling dipped 1.1% to $1.2242 and €1.1004, with analysts at ING Group now assuming an early election will take place and that the pound will sink as low as $1.18 and €1.05.BBC News   Financial Times, Page: 1   The Daily Telegraph   The Times, Page: 1   The Guardian, Page: 1, 28

The Oracle Group: the fun-loving, hard-working, creative-thinking, PRWeek Top 150-ranking, promise-keeping, budget-saving, client-pleasing, content-creating, challenge-beating, brain-storming, award-winning, copy-writing, social-media-bombarding, brand-designing, proof-reading, event-making, reputation-building, marketing and communications group…and the only one to be crowned one of the ‘Best Places to Work in Property’ by Property Week in 2018 and 2019. If you’re looking for an enthusiastic, creative and reliable team to help with PR, design, marketing, events, digital marketing and social media, get in touch with the Oracle Group today.


Coskry Coskry

The Oracle Group is a multi-service creative communications agency, providing expertise in five core areas: PR, Marketing, Social Media, Events and Digital. This means we can tailor our approach to each project.

Link to The Oracle Group business profile

27th March 2024
UK Space Agency Boldly Goes to Harwell Campus
The UK Space Agency has made Harwell Campus its head offices.
Read more
25th March 2024
Stag Brewery Developer Seeks Resolution with Planning Inspectorate
The Stag Brewery development, Mortlake, has been referred to the Planning Inspectorate on appeal.
Read more
21st March 2024
The Landsite Media Partners for London Build 2024
For the third year running, The Landsite continues its media partnership with London Build 2024
Read more