Property Market Insights - Weekly Newsletter

Mortgage Lenders Cautious on Spray Foam Insulation

Recent findings reveal that 25% of the UK’s largest mortgage lenders are declining loans for properties with spray foam insulation in roof spaces. This insulation method, touted for energy efficiency, has raised structural and fire safety concerns.

Spray foam can trap moisture, causing wood rot and compromising roof integrity. As a result, TSB, Skipton Building Society, Co-operative Bank, Principality, and Aviva refuse to lend on these properties. Yorkshire Building Society and Metro Bank have stricter conditions, while Lloyds, Nationwide, Barclays, NatWest Group, and Santander assess cases individually.

For homeowners, this complicates selling and financing properties. Valuers and surveyors should be consulted to ensure compliance and mitigate risks.

Rightmove Reports Dip in Asking Prices Amid Tax Concerns

Rightmove’s latest House Price Index highlights a larger-than-usual 1.4% drop in asking prices from September to October. Concerns about potential tax rises around the Autumn Budget are key drivers.

Despite this, annual asking prices remain 1.2% higher, with the average at ￡366,592. The market has shown resilience, with buyer demand recovering post-Budget, thanks to the Bank of England’s interest rate cuts.

Rightmove forecasts a 4% price increase in 2025, with improved affordability driving demand. Sellers are advised to price competitively as buyers remain cautious yet opportunistic.

Landlords Face EPC Challenges Ahead of 2030 Deadline

New research shows 67% of landlords own at least one property that doesn’t meet the proposed EPC ‘C’ target. With the government’s aim for private and social rental properties to hit this efficiency by 2030, landlords face an average upgrade cost of ￡12,000 per property.

Improvements range from loft insulation to solar PV panels. Funding options include savings, rent increases, and government grants. However, 34% of landlords intend to sell rather than invest in upgrades, potentially reducing rental stock.

Green mortgage products offer opportunities for landlords to finance sustainable upgrades, benefiting both property values and tenant affordability.

Rental Market Reforms Demand Justice System Investment

The Law Society is urging immediate investment in the justice system as eviction cases surge. With mortgage and possession orders rising significantly, nearly 25,000 renters face potential homelessness.

A shortage of legal aid providers compounds the problem, leaving renters vulnerable. The society calls for ￡4.3 million in housing legal aid funding to ensure renters can access justice.

Landlord Action highlights delays in court bailiff appointments, with some cases now extending into 2025. This adds pressure to landlords and tenants alike, underscoring the need for a more efficient legal system.

Final Thoughts

The property market is navigating multiple challenges, from energy efficiency regulations to legal system constraints. Both investors and homeowners must stay informed and proactive in addressing these issues to protect their assets and ensure smooth transactions.

For personalised advice or further assistance, don’t hesitate to get in touch

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