News
Property, Construction & Mortgages - January 2010
Slow recovery for construction industry
On 27 January 2010, James Brockett wrote in PM Online that barely a quarter of the construction jobs lost during the recession will return in the next four years as the industry faces a slow recovery, according to a report.
Industry body ConstructionSkills said that 375,000 jobs have been lost from the sector since 2008, and predicted that only 100,000 of those would be recouped by 2014. Output in construction is estimated to have shrunk by 13 per cent last year. Despite the news that the UK economy has emerged from recession, construction is likely to see a further marginal decline in 2010 and will probably not see growth until next year, said the report.
Construction output in the next few years is forecast to be strongest in Wales, Scotland, the East of England and East Midlands.
Source: www.peoplemanagement.co.uk/pm/articles/2010/01/slow-recovery-for-construction-industry.htm
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December house prices up 0.1 per cent since November: Average house price in England and Wales now £161,783
On 29 January 2010, the December 2009 data from Land Registry's flagship House Price Index was published. It shows an annual price change of 2.5 percent. This is the first positive annual house price change since May 2008:
- The monthly change is 0.1 percent, which is the eighth month in a row in which the monthly change has been above zero. This brings the average property value in England and Wales to £161,783.
- Seven regions in England and Wales experienced increases in their average property values over the last12 months.
- The region with the highest annual price change is London with an increase of 6.1 percent.
- The region with the most significant annual price fall was Wales with a movement of -2.5 percent. Both the North East and the West Midlands experienced the greatest monthly rises with movements of 1.9 per cent. Wales was the region with the most significant monthly price fall with a movement of -2 percent.
- The most up-to-date figures available show that during October 2009 the number of completed house sales in England and Wales rose by 34 percent to 59,482 from 44,530 in October 2008.
- Transaction volumes, while no longer falling at 2007 rates, are still relatively low.
For more information and to view the report in full, visit http://www1.landregistry.gov.uk/houseprices
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Positive start to 2010 for house prices: Nationwide survey
House prices rose by 1.2 percent in January 2010 compared with the previous month, according to the latest survey from the Nationwide Building Society.
The survey put the average house price in the UK at £163,481, an increase of 8.6 percent from this time last year. With the consistent increases seen over the past few months, annual house price inflation is expected to reach double figures by February 2010.
The latest news shows house prices performing much better than general economic recovery with the smaller than expected rise in the economy reported in the recently published Q4 2009 statistics. This is in contrast to the rapid deterioration shown in the housing market in 2007-08 compared with the economy.
The labour market has seen improvements with the unemployment figures falling in November 2009 for the first time since February 2008, with this trend continuing in December 2009. However, over the past year, UK average earnings growth has fallen to the lowest levels on record.
This stagnation in pay inflation is likely to limit further increases in house prices as interest rates are at their all-time low and not likely to fall further. Conversely, more people have retained their jobs as a result so fewer householders have been under pressure to sell their properties.
There are expectations that interest rates are likely to stay the same until late 2010 and maybe beyond. But with inflation consistently higher than estimated by analysts and not falling below the MPC's 2 percent prediction, higher interest rates may be need to be put in place. Factors for higher inflation can be attributed to the weakness of the pound and higher fuel prices. Also there has been an underestimation of the effect that the poor exchange rate has had on inflation and an overstated expectation of spare capacity in the economy. With both of these factors inflation may rise and, if so, interest rates will need to rise sooner than originally expected.
Source: http://www.nationwide.co.uk/hpi/historical/Jan_2010.pdf
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Houses in multiple occupation and possible planning responses
On 27 January 2010, the results of a recent Government consultation were published. The document comprises a summary of responses to the consultation on three options for addressing the impact of high concentrations of houses in multiple-occupation (HMOs), and the Government's response to the consultation.
Problems caused by high concentrations of houses in multiple-occupation (HMOs) have been highlighted as an issue in a number of towns and cities across the country. These problems range from increased anti-social behaviour to environmental impacts, plus impacts on areas social cohesion and local services. Communities and Local Government (CLG) commissioned ECOTEC to prepare an evidence gathering report to identify good practice in areas that manage to cope relatively well with high concentrations of houses in multiple occupation; to test whether these could have a wider application; and to determine whether (and if so what) planning policy is a suitable lever to tackle these problems.
A total of 948 responses were received. Individuals (members of the public) accounted for three-quarters of all responses with local authorities accounting for over 9 percent of responses and residents' associations 6 per cent.
The majority of respondents were in favour of the second option outlined in the consultation. This option was to amend the Use Classes Order and offered two mechanisms for change. Firstly, to amend the threshold in Class C3 to refer to 'not more than three residents living together as a single household' thereby lowering the 'trigger' for considering whether planning permission is needed (currently at six people); or secondly, to provide a specific definition of an HMO (either by introducing a new Use Class or taking HMOs out of the UCO) with a definition along the lines of that in the Housing Act 2004 focusing on properties where three or more people are occupying a property (who are not all members of the same family) and who share a bathroom, kitchen or toilet.
Full version of the consultation available at: Houses in multiple occupation
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New home ownership scheme moves Armed Forces up the property ladder
On 26 January 2010, the Ministry Of Defence announced that Members of the Armed Forces looking to buy their own home could benefit from a new home ownership scheme. Under the pilot scheme, the Government will provide members of the Armed Forces with up to 50 per cent of a property's value. Unlike similar schemes, personnel will be allowed to purchase properties anywhere in England through a single service provider, in order to meet the needs of the Armed Forces' mobile workforce.
In addition, applicants can sub-let their properties and will not normally pay any fees on the equity while they remain as serving members of the Armed Forces.
The £20 million pilot will initially run until Spring 2013 and will be funded by the MOD and managed and delivered by the Homes and Communities Agency.
Source: http://nds.coi.gov.uk/content/detail.aspx?NewsAreaId=2&ReleaseID=410598&SubjectId=2
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New measures for fair treatment for mortgage holders
On 26 January 2010, the Financial Services Authority (FSA) set out a package of measures to help ensure that mortgage holders in arrears are treated fairly and which reinforces the FSA's tough stance in its battle against mortgage fraud.
The proposals (see: www.fsa.gov.uk/pages/Library/Policy/CP/2010/10_02.shtml) strengthen existing rules on arrears handling - one of the urgent issues flagged in the Mortgage Market Review discussion paper (see: www.fsa.gov.uk/pages/Library/Policy/DP/2009/09_03.shtml) last October.
This reflects other ongoing work carried out by the FSA, which uncovered high levels of consumer detriment particularly in the specialist lending sector.
The key arrears proposals:
- Make plain that firms must not add early repayment charges on arrears charges and interest levied on those charges;
- Clarify that firms must not apply a monthly arrears charge where the firm and the customer have agreed an arrangement to repay the arrears;
- Compel firms to consider all options for borrowers. Repossessions should always be the last resort;
- Confirm that payments by customers in financial difficulties must first be allocated to clearing the missed monthly payments, rather than to arrears charges, which can be repaid later; and
- Oblige firms to record all arrears handling telephone calls and to keep all records for three years.
New proposals will also mean all mortgage advisers and those who arrange non-advised sales will be individually accountable to the FSA, and need to demonstrate they are 'fit and proper' for their role.
Extending the approved person regime will also have significant benefits for consumers. The FSA made it clear through its review of the mortgage market that it wanted a strong, viable and clean marketplace and its requirement for mortgage advisers to prove they are fit and proper will help to remove dishonest individuals from the industry and to keep them out.
Full details available at: FSA/PN/013/2010
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Rush to beat Stamp Duty linked to mortgage rise
On 22 January 2010, the National Association for Estate Agents (NAEA) suggested that the recent rise in mortgage lending may be as a result of people rushing to beat the rise in Stamp Duty rather than c0onfidence in a rising market.
Between November and December 2009, the Council of Mortgage Lenders announced a 14 per cent increase, recorded ahead of the deadline for the one per cent tax being reintroduced on 1 January 2010. Gross lending reached £13.7 billion in December 2009.
Peter Bolton King, chief executive of the NAEA, warned that the Government's withdrawal of the tax holiday was a mistake and could result in a large reduction in the number of people borrowing in January 2010.
Source: Mortgage.org.uk
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Consumers could see how green brands are
Pressure from the British Property Federation (BPF), the organisation which represents landlords, may bring about change which will allow shoppers to be able to see how green their favourite shops are.
On 20 January 2010, the government announced plans for a consultation on the introduction of display energy certificates (DECs) for shops and offices. In a response to the Committee on Climate Change's First Progress Report, the DECs will make transparent the carbon emissions of businesses.
The DECs will not just include such criteria as whether an organisation uses an A-rated green building but also will look at whether energy is wasted through basic things like lights being left on and doors left open unnecessarily. It is thought that the introduction of DECs could result in more energy-use awareness and could cut costs of energy bills by about 30 percent.
At present, only buildings exceeding a certain size are required to have such certificates.
Source: British Property Federation
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Farm Rents
A review was carried out in 2009, in consultation with stakeholders, to determine the best source of farm rents data in the Department for Environment, Food and Rural Affairs (Defra). It concluded that the Farm Business Survey should become the main source of data and that the Tenanted Land Survey (the previous source of rent data) should be discontinued. Full details of the review can be found via the 'Farm rents data source review' link below.
The latest release provides details of average rents paid under Full Agricultural Tenancies, Farm Business Tenancies and Seasonal agreements for 2004 to 2008 and the land area covered by these agreements.
The latest National Statistics produced by Defra showing estimates of farm rents from the Farm Business Survey (FBS) were released on 21 January 2010. This release shows estimates of average rents paid under Full Agricultural Tenancies, Farm Business Tenancies and Seasonal agreements (those of less than 12 months) for 2004 to 2008 and the area of land covered by these agreements.
The data are collected through the Farm Business Survey. Throughout this release the results from the 2008/09 FBS are referred to as the 2008 results.
The key results for 2008 are given below:
- Full Agricultural Tenancy (FAT) agreements: In 2008, the price of full agricultural tenancy (FAT) agreements increased by 5.1% to £136/ha compared with £130/ha in 2007. The average rent price for dairy farms continued to rise in 2008 to £167/ha, showing an increase of 5.2% on 2007. The average rent for cattle and sheep farms in lowland areas also saw an increase for the second consecutive year, increasing from £106/ha in 2006 to £123/ha in 2008.
- Farm Business Tenancy (FBT) agreements: Farm business tenancy (FBT) agreements also increased in 2008 with average rent prices rising by 5.4% to £160/ha. This increase was largely due to an 11.4% rise in the price of cattle and sheep farms in lowland areas and a 9.8% increase in the average rent of general cropping farms.
- Seasonal agreements: Seasonal agreements saw a decrease in rent prices in 2008, with average rents dropping from £117/ha in 2007 to £107/ha in 2008.
Source: UK National Statistics and Defra
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Gross mortgage lending up 14% in December 2009
On 21 January 2010, the Council of Mortgage Lenders (CML) reported that gross mortgage lending reached an estimated £13.7 billion in December 2009, a 14% rise from £12.1 billion in November and up 3% on December 2008. However, apart from 2008, this is still the lowest figure for December since 2001 (£13.4 billion):
- Lending totalled £39.1 billion in the fourth quarter of 2009, up slightly from £39 billion in the previous quarter but down by 14% on the last three months of 2008. There is typically a 6% fall between the third and fourth quarter.
- For 2009 as a whole, lending totalled £143.7 billion, slightly above CML's annual forecast of £141 billion. However, this is down 43% from £253 billion in 2008 and the lowest annual total since 2000 (£119.8 billion).
Source: www.cml.org.uk/cml/media/press/2519
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Available mortgages 'top 2,500'
On 18 January 2010, Susanna Kavka wrote on mortgage.org.uk that there are now 2,500 different mortgages available on the market for the first time in almost a year, according to reports by moneysupermarket.com.
Following the third consecutive monthly increase in the number of products on the market, borrowers can now choose between 2,516 different mortgages, as of 12 January 2010. However, this is 12 times less than the 30,000 products which were on the market back in August 2007.
Source: www.mortgage.org.uk/available-mortgages-top-2-500-19563012.html
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Don't get caught out by the lease extension timebomb
On 18 January 2010, the Leasehold Advisory Service issued a timely reminder for people who bought flats in the 1970s and 1980s on relatively short leases of 125 years. Leaseholders have rights in law to extend their leases by 90 years (Leasehold Reform Housing and Urban Development Act, 1993), but the costs of doing so can jump dramatically once the unexpired term of the lease falls below 80 years.
One of the main reasons for the big jump in costs when extending a lease of 80 years or less is that valuers must take into account marriage value. This is a measure of the potential for increase in the value of the flat arising from the grant of the new lease, and it has to be shared 50:50 between the parties. Marriage value does not apply when the unexpired term is still over 80 years.
In the calculation of the marriage value the leaseholders' and landlord's valuers will use local knowledge and experience to assess the increase in value of the flat arising from the new lease.
You can get a ballpark idea of the cost of extending your lease by using the quick calculator on the Leasehold Advisory Service (LEASE) web site at: www.lease-advice.org where you can also find an advice guide on lease extension.
Source: Leasehold Advisory Service press release 18/1/2010
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New buy-to-let mortgage range from Godiva Mortgages
On 15 January 2010, Godiva Mortgages Limited (a subsidiary of the Coventry Building Society) announced a new range of competitive buy-to-let deals. They claim that Godiva's overall arrangement fees for their buy-to-let products total £1,050 compared with some others which have fees of up to 3.5 percent, which works out at £5,250 for an average loan of £150,000.
They also claim to have excellent rates and service. Part of the range is a 4.49 percent Flexx for Term deal, with a 60 percent loan-to-value (LTV) ratio and no early repayment charges. A similar product with 70 percent LTV is available at a rate of 4.75 percent.
Source: Mortgage.org.uk
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Income/mortgage interest ratio at five-year low
On 14 January 2010, the Council of Mortgage lenders (CML) released figures showing that, in November 2009, home buyers needed to use less of their income to cover their mortgage interest than at any time for more than five years.
Since the CML began recording this data in 1974, home owners are experiencing the lowest debt burden. Statistics show that only 10.6 percent of gross income in November 2009 was needed to cover mortgage interest payments, down from 11.1 percent in October 2009.
First time buyers also benefitted, with 14.4 percent of gross income needed in November 2009, down from 15.1 percent in the previous month.
As is expected at that time of year, lending volumes fell in November 2009 but still showed a 66 percent increase on the same time in 2008. The remortgaging market showed a drop of 6 percent on October 2009, a trend that has been repeating continually year on year.
Whilst new lending has increased, bolstered by low interest rates, this has had the reverse effect on remortgaging with levels dropping from 53 percent to 31 percent during 2009.
Source: Council of Mortgage Lenders
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New orders in the construction industry, November 2009
On 14 January 2010, the Office for National Statistics (ONS) reported that, in the three months to November 2009, orders rose by 1 percent compared with the previous three month period. Orders in the 12 months to November 2009 fell by 14 percent compared with the previous 12 months but orders in the three months to November 2009 rose by 4 percent compared with the same period a year earlier.
In the three months to November 2009, compared with the same period a year earlier, private housing orders rose by 23 percent and public and housing association housing orders rose by 9 percent. All orders figures quoted are seasonally adjusted and in constant (2005) prices.
Private and public housing
Private housing orders in the three months to November 2009 rose by 56 percent compared with the previous three month period and rose by 23 percent compared with the same three month period a year earlier. Private housing orders in the year to November 2009 fell by 30 percent compared with those in the previous 12 months.
Public housing and housing association orders in the three months to November 2009 fell by 30 percent compared with the previous three month period but rose by 9 percent when compared with the same three month period a year earlier. Public housing and housing association orders fell by 6 percent in the 12 months to November 2009 compared with the previous 12 months. All comparisons in this sector are affected by large variations due to its relatively small size.
Private and public infrastructure
Infrastructure orders in the three months to November 2009 fell by 28 percent compared with the previous three month period but rose by 102 percent when compared with the same three month period a year earlier. Infrastructure orders in the year to November 2009 rose by 54 percent compared with the previous 12 months.
Public non-housing
Public non-housing orders (excluding infrastructure) in the three months to November 2009 were unchanged compared with the previous three month period but rose by 10 percent compared with the same three month period a year earlier. Public non-housing orders in the 12 months to November 2009 rose by 9 percent compared with the previous 12 month period.
Private non-housing
Private commercial orders in the three months to November 2009 rose by 17 percent compared with the previous three month period but fell by 34 percent compared with the same period a year earlier. Private commercial orders in the 12 months to November 2009 were 44 percent lower than in the previous 12 months.
Private industrial orders in the three months to November 2009 rose by 18 percent compared with the previous three month period but fell by 10 percent compared with the same three month period a year earlier. Private industrial orders in the 12 months to November 2009 fell by 38 percent compared with the previous 12 months.
Source: Office for National Statistics
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House prices still increasing after predicted crash
Prices continue to rise in contradiction to several forecast of a housing crash, the Daily Mail reported on 13 January 2010.
Bolstered by low interest and mortgage rates, increases of 8.9 percent have been recorded since the low in February 2009 although house prices are still lower than in October 2007.
Sector analysts across the board are predicting stability for the future, with Credit Suisse forecasting house prices in the UK to stagnate this year but rise by 5 percent in 2011. It also forecasts an average 58 percent upside for housebuilders' share prices in 2010.
Source and full article: Daily Mail Online-Money section
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Land Registry: Changes to the Technical Manual Parts 1 and 2
On 13 January 2010, The Land Registry announced that updated versions of the Technical Manual Parts 1 and 2 will be published on the Land Registry website from 25 January 2010. The Technical Manual Part 1 will be amended to reflect the changes in e-services availability.
The Technical Manual Part 2 will be updated to include an overview of the enhanced facilities available through 'Services Requested Today' and 'PDF Downloads'. Further information on additional fee detail for both Information Services and Land Charges Services will also be included together with enhancements to the message area.
The Technical Manual can be viewed by clicking on the "Terms and conditions" link at the bottom of any page on the Land Registry website, and then clicking on the name of the document you wish to view.
Source: The Land Registry - important developments
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Growth of commercial development at end of 2009 driven by continued rebound in private sector activity
On 13 January 2010, in a survey published by Savills Building & Project Consultancy, data showed a moderate increase in commercial development activity in December 2009, continuing from the previous months. The private sector outpaced public sector activity.
Respondents were positive about activity for the coming quarter, with commercial developers the most optimistic about retail and leisure development, although they expressed concerns about office development.
Higher levels of commercial activity were recorded in just four of the nine areas of development monitored by the survey in December 2009. Refurbishments followed by private sector new build showed the strongest progress. However, public sector retail & leisure development activity performed the worst in December 2009.
Source and access to full report: Savills Building & Project Consultancy
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House price increases slower in December
A UK Housing Market survey carried out by the Royal Institution of Chartered Surveyors (RICS), published on 12 January 2010, showed that house price increases slowed at the end of 2009. 30 percent of surveyors saw price rises fall during December 2009.
The majority of surveyors are still recording increases in the London area, the South East, the South West and East Anglia. However, the West Midlands and the North showed falls in prices indicating that recovery is not the same nationwide.
As in the previous seven months, new instructions are increasing and although demand for property is still greater than supply, the gap is lessening. House prices are being elevated as the rate of new enquiries continues to be higher than the level of new instructions.
Traditionally, the Christmas period sees a downturn in the market with the New Year seeing renewed activity and optimism.
Source and access to full survey: RICS - UK Housing Market survey
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Land Registry launches 'Protect your Property' campaign
On 11 January 2010, the Land Registry's 'Protect your Property campaign' launched as a positive measure to help protect homeowners who are most at risk of property fraud.
Land Registry will be using the Central Office of Information's register of 6,500 organisations to distribute a 'Protect your Property' leaflet to homeowners at advice centres, law centres, solicitors' offices, elderly concerned organisations and public libraries. The leaflet can also be downloaded from the Land Registry website.
The leaflets provide information about how people in these vulnerable groups can protect their most valuable asset. In addition to leaflets, the campaign will also benefit from online content and advertising.
As part of the wider initiatives to reduce property fraud, Land Registry is working with other organisations including the National Fraud Information Bureau, the National Fraud Initiative, as well as the Solicitors Regulation Authority. Work is also underway with the Law Society to provide their members with a practice note on preventing registration fraud.
Source and for more information: Land Registry 'Protect Your Property' campaign
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Council house-building cash doubled
On 11 January 2010, with the largest council house building programme for nearly two decades already underway, Housing Minister John Healey has doubled Government cash for new council homes. He announced that 73 councils covering every region of England will share an extra £122.6 million. Councils will match this second round Government grant bringing investment in this round to £246m, and total public investment in the programme as a whole to over £500m to build more than 4,000 new council homes for 8,000 people.
In a clear break with council houses of the past, the Housing Minister also confirmed that many will be new family homes, whilst all will be highly energy efficient and add to the mixed make-up of local neighbourhoods. And for the first time, all councils receiving Government funds are required to offer apprenticeship and local job recruitment schemes, creating 7,500 jobs and around 100 new apprenticeship places.
Thirty-five of the 73 councils receiving funding in this second wave will extend their council house building work which is already underway after successful round one bids, while 38 councils receive this government backing for the first time. Eighty-six councils bid for the second round of house building with projects totalling more than double the funds earmarked.
This year's Government spending will be the largest for affordable housing for at least two decades.
Source: Communities and Local Government press release 11/1/2010
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Headache for homeowners as mortgage rates rise
On 8 January 2010, it is reported that, despite a Bank of England freeze on the base rate, homeowners are facing increases of up to £1,400 extra a year as they revert back to the Standard Variable Rate (SVR) as their special fixed rate or tracker deals end.
Many lenders have raised their SVR since it was set at 0.5 percent in March 2009. Many households are already struggling with demands on the household budget, with some salaries frozen and job losses commonplace.
Source and access to full report available at: House Price Crash
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A range of new fixed-rate and tracker mortgage deals has been announced by Nationwide.
The Nationwide has announced that it is to make cuts to loans available between 70 percent and 85 percent loan-to-value (LTV).
For buyers looking for a two-year fixed-rate deal there is a 3.69 percent loan available at a LTV of up to 70 percent.
The three-year deals available from Nationwide now include a fixed rate on offer for 4.39 percent with a 70 percent LTV, or a tracker loan of up to 70 percent LTV which comes with a rate of 2.99 per cent.
Source: www.mortgage.org.uk/new-mortgage-deals-announced-by-nationwide-19546197.html
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House prices increase
The Halifax House Price Index published on 7 January 2010 shows that house prices increased in December 2009 or the sixth consecutive month in December.
Between November and December 2009, the 1% rise was slightly below the average increase over the previous five months, with prices in December registering 1.1% higher, marking the first rise since March 2008. Since the low in April 2009, house prices have risen by 9.4%.
Source and access to full report available at: Halifax House Price Index
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RICS welcomes taller buildings plan
On 7 January 2010, RICS Northern Ireland director, Ben Collins, welcomed comments by the Minister for the Environment, Edwin Poots that a new policy is to be published detailing plans to reduce Northern Ireland's carbon footprint by using taller buildings.
This will bring Belfast into line with other comparable European cities which occupy much smaller areas and are therefore more sustainable, with travel reduced to workplaces, shops, schools, leisure centres and other social infrastructure and greater efficiency in service provision.
Source and access to full report available at: Royal Institute of Chartered Surveyors
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Mortgages with standard variable rate 'on the increase'
The standard variable rate (SVR) used by eight mortgage lenders has increased since April 2009, despite the Bank of England base rate remaining at 0.5 per cent during the same period. Opting for a SVR loan is becoming a more attractive and affordable option for borrowers as several institutions, such as Cheltenham & Gloucester and Cheshire Building Society, are offering rates as low as 2.5 per cent to their customers.
Many borrowers are finding it more affordable to stay on a revert-to rate, rather than switching to a different deal.
For more information, read article at Mortgage.Org.UK:
www.mortgage.org.uk/mortgages-with-standard-variable-rate-on-the-increase-19543716.html
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Borrowers more selective about loans
The number of people in the UK taking out mortgages to buy a home rose again in November 2009 whilst applications for other loans and overdrafts continued to fall.
In a report on 4 January 2010 by the Bank of England, figures show that there were 60,518 mortgages approved for house purchases in November 2009, up from 57,718 the previous month, the highest level since March 2008.
By contrast, consumer credit has fallen for the fifth month in a row, with consumers continuing to pay back unsecured loans, and borrowers paid back £376m more than they borrowed during the month. This trend has been seen regularly in the Bank of England figures, reaching £591m in October 2009.
It is thought that the lack of security over jobs and the relatively high cost of borrowing has affected people's confidence to take out loans for big purchases.
Source and access to full report available at: Bank of England statistics
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Mortgages 'more easily available'
More mortgages were made available by lenders in the UK in the final quarter of 2009, the Bank of England has said. As part of its mission to maintain monetary stability and financial stability, the Bank of England needs to understand trends and developments in credit conditions. A survey of bank and non-bank lenders is an input to this work. Lenders are asked about the past three months and the coming three months. The survey covers secured and unsecured lending to households; and lending to non-financial corporations, small businesses, and to non-bank financial firms.
The latest report presents the results of the 2009 Q4 survey (conducted between 16 November and 4 December 2009). It says that an improved economic outlook and house price rises had driven the rise in lending. People looking to borrow more than 75% of their property's value saw the biggest improvement in choice. The report also said that lenders expected to make credit more easily available to households and businesses in the first quarter of 2010.
Source: www.bankofengland.co.uk/publications/other/monetary/creditconditions.htm
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Country homes could rise by 10% in 2010
On 2 January 2010, the Times reported that continued demand from foreign buyers will push up the price of country homes by as much as 10 per cent this year but the outlook for the property market as a whole is more mixed, according to leading estate agents. Rob Bruce, head of research at Hamptons International, is among those tipping country homes to outstrip the market, partly because of interest from Middle Eastern and Asian buyers. He predicts that the prices of country homes will regain the peak levels seen in 1997, a feat achieved by some prime properties in London in late 2009.
But there is dispute among property agents and economists about whether the recovery in the broader property market will continue with some predicting that prices will increase by as much as 7 per cent in 2010, while others foreseeing an equally sharp fall.
Source: Article at Times on Line, 2/1/2010
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