Pensioners could be forced out of homes
Posted by The Oracle Group on 17th July 2019 -
RENTAL
Pensioners could be forced out of homes
A group of MPs have warned that hundreds of thousands of pensioners could be forced out of their homes in the future due to soaring rents. The all-party parliamentary group on housing and care for older people said there could be 1.5m pensioners in the private rented sector in the next two decades, many of whom will struggle to pay rising costs. The group has released a report which estimates that an extra 1.1m low-cost rented homes will be needed for older people by the late 2040s and urges the next prime minister to prioritise low-cost rented housing. The report also found that the number of older households living in unfit and unsuitable private rented accommodation could leap from about 56,000 to 188,000 in 20 years' time and to 236,500 in 30 years' time.
Londoners boosting income with short-term rents
Homeowners in London are taking advantage of the demand for holiday homes in the capital by offering their properties for short term rent. Online rental platform HomeAway, part of Expedia Group, reports that the average earnings per booking can be as high as £897 in Camden and up to £1,022 in Westminster.
INDUSTRY
House prices set to jump as Brexit approaches
House prices are set to jump this summer according to Reallymoving. The conveyancing comparison website analysed property price information from the quote requests it receives. Based on these prices – which have already been agreed between sellers and buyers – it has forecast annual price growth of 0.7% in July, followed by 1.2% in August and 3.8% in September. “The chance of us leaving the EU without a deal seems increasingly likely and people are realising that the window between now and the end of October may present their best opportunity to sell,” commented Rob Houghton, chief executive of Reallymoving.
First-time buyer numbers continue to rise
Figures from UK Finance have revealed that the number of first-time buyers is continuing to rise despite high house prices and other challenges. New data revealed mortgage lenders signed off on 30,720 new first-time buyer mortgages in May, which is 0.5% more than in the same month in 2018. The data shows that, whilst the overall mortgage activity had declined compared with this time last year, first-time buyer figures had gone the other way.
The buy-to-let market steadies
Buy-to-let activity was mostly unchanged in May, according to the UK Finance Mortgage Trends Update, suggesting the market may have stabilised. There were 5,500 new BTL home purchase mortgages completed in May, the same number as this time last year. There were 15,000 remortgages in the buy-to-let sector – an increase of 2% year-on-year. “The number of buy-to-let mortgages for house purchase was unchanged from 2018, suggesting that the buy-to-let market has finally reached a new stable level after several unfavourable tax changes,” commented Mike Scott, chief property analyst at Yopa.
West London homes selling faster
Property Solvers has found that residential homes are selling quicker in West London, compared with the rest of the capital. The estate agents found that 244 homes in the area took an average of 12 weeks to sell, compared with 16 weeks across the wider city. “It’s arguably a testament to estate agents taking a more realistic approach to pricing alongside more efficient mortgage processing, survey and conveyancing process coming into play,” said James Durr, Property Solvers co-founder.
New build buyers pay 10% premium
A survey of property values by the Royal Institution of Chartered Surveyors has revealed that house hunters who buy new builds pay up to 10% more for their homes than those who buy second-hand properties. The survey found that the new-build premium stands between 5% and 10%.
MORTGAGES
Mortgage rates remain stable
Average mortgage rates have remained stable in May, according to Moneyfacts, whilst swap rates have declined sharply. The average two-year fixed rate has risen to 2.49% from 2.47%, and the two-year tracker rate fell from 2.02% to 2.01%. Meanwhile, the two-year swap rate fell from 1.05% to 0.74%, the five-year swap rate dropped from 1.19% to 0.80%, and the 10-year swap rate from 1.35% to 0.95%. “This could be a result of markets now reacting to the anticipation that the BoE is expected to cut the base rate before the end of 2019, following 12 months of economic uncertainty,” commented Moneyfacts finance expert Darren Cook.
AMI warns of affordability squeeze
Increasing arrears on bridging loans could be an early sign of an affordability squeeze in the years to come, The Association of Mortgage Intermediaries has warned, particularly given the shift to less secure forms of employment. In its latest quarterly economic bulletin, the mortgage broker trade body said: “Mortgage arrears present a significant downside risk over the coming years, based on changing employment dynamics, an ageing society increasingly reliant on work and debt and a steadily rising bank rate.”
Barclays launches three new mortgage products
Barclays has announced the launch of three new mortgage products: a 95% LTV three-year fix at 2.99% and a 90% LTV two-year residential fix at 2.24% – both within the lender’s residential range and without product fees – as well as a 75% LTV two-year fix at 1.68%, part of the buy-to-let range.
COMMERCIAL
Westminster refurb office deal secured
The Evening Standard reveals that up to 1,000 Parliamentary staff could move to a building near St James’s Park station while a £4bn restoration of the Palace of Westminster takes place. Parliament has signed a major office deal for space that will be used by House of Commons and administrative staff rather than MPs. The space will be taken from Westminster City Council at its recently refurbished HQ on Victoria Street.
The Office Group adds two London buildings
Blackstone-backed The Office Group has added 83,000sqft of office space to its portfolio with the acquisition of two central London buildings, with the acquisition of Liberty House on Regent Street and The Media Village on Great Titchfield Street, which lifts the firm’s number workspaces in London to 43 buildings.
FIRMS
Yorkshire estate agent merger
Yorkshire-based Linley & Simpson has acquired the residential lettings and sales business of fellow independent agency Morgans, as the next stage in the regeneration of Leeds gathers pace. It marks the third acquisition the firm has completed since the Government's letting fees ban came into force on June 1, which it said has added impetus to continuing consolidation of the industry.
M&G blocks withdrawals from property fund
M&G has blocked withdrawals from its UK Property Income Fund, saying that it needs to sell properties to raise enough money to meet withdrawal demands.
INFRASTRUCTURE
Crown Estate prepares offshore wind auction
The Queen's property managers will this week outline terms for the world's biggest offshore wind auction in a decade. Experts expect the complex bidding process to raise £100m in royalties for the Queen. The Crown Estate has exclusive rights to lease the seabed around Britain for wind and wave power. Its profits go to the Treasury, which then sends 25% to the royal household in the sovereign grant.
RETAIL
Arcadia faces legal battle over restructuring
Arcadia faces a court battle with New York-based property group Vornado over its plans to reduce rents through a restructuring process. The legal challenge concerns two of the retailer's seven Company Voluntary Agreements (CVAs), relating to Topshop and Topman stores. Arcadia chief executive Ian Grabiner described the challenges as “without merit” and said Sir Philip Green's company would “vigorously defend” itself.
PLANNING
Fife MP slams Scottish planning system as a ‘shambles’
Kirkcaldy and Cowdenbeath MP Lesley Laird has criticised the Scottish planning system as a “shambles,” highlighting the Scottish Reporter’s recent decision to approve a Cala Homes development in Aberdour, despite objections from residents, rejection from Fife Council and a first appeal to a Scottish Government Reporter being rejected. The “current shambles” in the planning system, he said, simply opened the door to yet another appeal.
Law firm advised Grainger on BTR development
Grainger has been advised by law firm Womble Bond Dickinson (WBD) on the forward funding of a key build-to-rent development project at Sweet Street, Leeds which will be developed by Oakapple Group. The development, known as Fabrik, will see the construction of 216 new build-to-rent homes in the city as part of the Holbeck Urban Village - a key element of the south bank regeneration initiative. Yorkshire Post, Page: 17
OTHER
Nationwide launches tool for brokers
Nationwide Building Society has launched a new build exposure tool for brokers, allowing them to determine whether they can secure borrowing on a particular development. “Our new exposure tool provides greater upfront certainty around acceptance, helps further speed up the application process and has been launched in response to intermediary feedback,” said Andy Dean, Nationwide’s head of new build and intermediary support.
Harry Styles buys £8.8m semi near first London property
Pop star Harry Styles has paid more than £8m for a five-bedroom Georgian semi, a stone’s throw from where he first climbed on the property ladder aged 18. One local estate agent suggested Styles could be planning to let his first house and move into the more spacious property.
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