A surge in larger properties being listed for sale, Rightmove says

The property portal said the number of four-bed, five-bed or larger properties coming to the market for sale is now 15% higher than the same period last year. Before the start of September, the trend of homes for sale was being driven by the smaller homes sector (two bedrooms or fewer), but that has switched to larger homes. Rightmove said the rise in large homes for sale is most prominent in the east of England, seeing a 21% year-on-year increase, followed by the southwest, up 20%.??

They suggested a few reasons for the new trend, including falling mortgage rates for those with high deposits, who are most active in this sector of the market. They also cited increasing speculation about a capital gains tax rise, which is encouraging some to ‘cash out’ now. A greater choice of homes on the market also encourages other sellers to act, further boosting supply.???

New research from HBF shows the struggle for first-time buyers?

The proportion of 18- to 34-year-olds living with their parents in the UK has overtaken the proportion living independently with their own children. While the latter used to be the most common living situation for young adults in the UK, the last 20 years have seen the two swap places.??

The Home Builders Federation (HBF) has analysed the average first-time buyer income against average house prices and mortgage qualifying criteria in their new report, Broken Ladder. They found that the average first-time buyer in England would need to save 50% of their remaining monthly income – after rent and bills – over nine years to afford a deposit to buy a home. Aspiring homeowners in the East of England would have to save 50% of their discretionary income for over a decade. This increases to more than 13 years in London and the Southeast.??

If the average first-time buyer saved 100% of their discretionary earnings, it would still take them 4 years to save enough to cover the average deposit in England. In 2014, the monthly mortgage payment for the average first-time buyer was 47% of their net salary. As of 2024, the average monthly mortgage payment has increased to 67% of a typical first-time buyer’s net salary.??

The HBF is calling for a new targeted homeownership scheme to boost first-time buyer deposits and give them access to new build mortgages at competitive rates.??

Nationwide Building Society boosts first-time buyer support??

Nationwide is offering a major boost to first-time buyers by allowing loans up to six times income, a move aimed at addressing affordability challenges. Effective from 24th September, the major lender will extend its maximum loan-to-income (LTI) ratio through its Helping Hand mortgage scheme.??

Helping Hand enables first-time buyers to borrow up to 95% loan-to-value (LTV) on five- or ten-year fixed-rate mortgages. Nationwide’s increase to six times income offers a 33% uplift compared to its standard lending limit of 4.5 times income.??

Introduced three years ago, Nationwide’s Helping Hand has proven especially popular in the southeast and London regions with higher property prices. The mortgage lender has lent more than ￡7.5 billion through the scheme since its inception, supporting around 40,000 first-time buyers. The scheme will continue to be available to those earning a minimum of ￡30,000 as sole applicants or ￡50,000 jointly.??

In addition to the LTI increase, the lender announced it would reduce mortgage rates for first-time buyers by 31 basis points, making it the first major lender to offer sub-5% rates for those with a 5% deposit.??

Debbie Crosbie, Chief Executive of Nationwide Building Society said “Helping Hand has supported over 40,000 people onto the property ladder since we launched it three years ago. We want to do more and are boosting the scheme to six times income and increasing the maximum loan size.”?

“This, alongside our most recent rate cuts, further strengthens our market-leading position and demonstrates that, as one of the UK’s largest lenders, Nationwide continues to put first-time buyers first.”?

Property market sees early autumn surge as prices rise by 0.8%, according to Rightmove?

The average price of a property coming to market in September has risen by 0.8%, equivalent to ￡2,974, bringing the average asking price of a UK home to ￡370,759, according to Rightmove’s latest data. This is double the long-term seasonal average, driven by a stronger-than-expected recovery in market activity this summer compared to the subdued market of 2023.?

Rightmove’s Director of Property Science, Tim Bannister, explained “The autumn action has started early with a strong rebound in activity from both buyers and sellers compared to last year. The certainty of a new government and the first Bank Rate cut in four years has invigorated the market, opening a new window of opportunity for movers to act.”?

The number of sales agreed is up by 27% year-on-year, and buyer enquiries have increased 15%. The number of available homes for sale per estate agency has risen to its highest level since 2014, at 33 properties. However, despite the increase in choice, the market remains cautious, with homes taking an average of 60 days to find a buyer, three days longer than last year.??

Mortgage rates, although falling, remain high compared to recent years. Rightmove reports that the average 5-year fixed rate is now 4.67%, down from July’s peak of 6.11% but still nearly double the rates of three years ago.??

As autumn progresses, the market is expected to remain active, although there are uncertainties ahead, including the potential for further Bank Rate cuts and the upcoming Autumn Statement, which could affect different market segments.??

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