Our newsletter for June is here, digestible as always.
We talk about house prices, rents, the market reaction to bank rate hikes, and more.
July would mark the beginning of the second half of 2023, and we will continue to bring you news and analysis (and analysis of expert analysis).
- In the previous month, the?Bank of England raised interest rates?to 4.5%, marking the 12th consecutive hike in the bank rate. Following this increase, they issued a warning that an additional hike would be implemented in 2023 to mitigate the impacts of high inflation.
- No, we did not expect it to happen so soon, but last Thursday was the day.
- The Bank of England was?expected to increase the bank rate?by another 25pc, but in a surprise announcement, the rate was increased by 50pc, taking it to 5%.
- We’re nearing the end of the first half. Another long half awaits. Should we expect more such hikes? By the looks of it, yes. Unless - -?nope, we’re not giving you false hopes.?For now, we take a seat next to you and.. wait?!
- Interest rate hikes have continuously pressured mortgage lenders to increase lending rates. According to Moneyfacts, the average mortgage rate for a 2-year fixed deal is approaching 6%, and there has been a decrease in the number of available products.
- Housebuilder Bellway has found?that borrowers are adjusting to the higher rates, partly supported by the ongoing wage increase. However, they have also observed that the limited availability of affordable high loan-to-value (LTV) options has?dampened the demand?from first-time buyers (FTB).
- Additionally, “the recent expiry of Help to Buy in England” has led to low year‐on‐year demand from FTB.
- According to?Nationwide, house prices experienced a 3.4% decline in the year leading up to May, marking the?largest annual drop?since 2009. In May, the average house price stood at ￡260,736, with a slight 0.1% monthly decrease following a 0.4% increase in April.
- This indicates that the housing market is currently experiencing a downward trend, posing challenges for homeowners who are planning to sell or have upcoming mortgage renewals. However, it presents a favourable opportunity for first-time buyers who may consider waiting a few more months to secure a better deal.
- House prices may be coming down, but?rents don’t seem to catch a break.
- According to recent?data released by Hamptons, the average rental price for newly let properties in Great Britain increased by 9.1% in May compared to the same month in the previous year. London witnessed the largest yearly surge, with rents escalating by 13.1%, followed by Scotland (11.6%) and the North (9.2%).
- This trend is attributed to the mounting mortgage expenses that buy-to-let landlords encounter, which they subsequently pass on to tenants. While this is not a new development, the situation has not improved and does not appear to be heading in a positive direction. And that’s sad!
- In our previous newsletter, we discussed Skipton's zero-deposit mortgage launch. Due to recent changes in the mortgage market, they have been?compelled to?raise?their 100% Loan-to-Value (LTV) mortgage rate by 0.4%.
- As a result, new customers can now secure their mortgage with their product at a rate of 5.89%.
- We maintain our previous stance and reiterate that for first-time buyers, renting before purchasing can save them considerable trouble. We are here to assist you in this regard.
- Contact us?immediately if you are in the market for a new home and want to explore our rent-to-buy option.
The Hillingdon Council has approved a 7-storey tower construction plan.
The tower will be constructed on industrial land located on Tavistock Road, close to West Drayton's Elizabeth line station. Additionally, it will be just a few minutes away from the Grand Union Canal.
The project, comprising 105 new homes, will be led by property developer Bellway.
- One-bedroom flats?
- Two-bedroom flats designed for 2-4 persons
- 50-space car park
- Podium
Despite resistance due to the project's allocation of only 23% affordable housing, it was approved, as the aim was to enhance the availability of family housing.
Read more about this?here.
