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Nearly a third of homeowners whose finances have been hit by the pandemic say they are likely to move to their lender's higher standard variable rate rather than re-mortgage, according to research from Legal & General Mortgage Club. Mortgage borrowers hit hardest by the pandemic may find themselves paying out thousands more each year, because they believe the financial fallout has affected their ability to remortgage. “While the coronavirus crisis has undoubtedly affected people's finances in different ways, those who have seen their incomes drop will likely be finding this a particularly challenging time”, says Kevin Roberts, director at L&G. “It's vital they avoid falling onto a reversion rate and paying more, when there are other affordable options available.”
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Homeowners fear a mortgage holiday could impact their credit score |
Canary Wharf emerged out of the disused East London docklands in the 1990s and gave the capital its second financial centre, but until recently it might not have been the first area to spring to mind when looking for a new home in London. Canary Wharf Group, the privately-owned firm that controls the estate, is now making a concerted effort to shrug off its “all work and no play” reputation, to make it a residential destination rather than the endpoint of a commute. It is pushing to bring in more food and drink operators, to give the area the buzz that is part of the draw of living in London. It recently signed up street food market Mercato Metropolitano, which will open its doors this summer, at George Street in the new Wood Wharf development. Wood Wharf opened to its first tenants in February 2020 and then the pandemic hit demand, with a drop in the number of people moving in and making enquiries. However, says Canary Wharf Group head of residential Brian De’ath, there has also been a shift in the opposite direction. The developer will be looking to use the “benefits” of being a single landlord to recover from Covid-19 and attract new residents and business tenants, he explained, adding it is able to look at the Canary Wharf estate as a whole and control all the elements at play, whether that is residential, commercial, or retail.
City AM (15/03/2021)
The Evening Standard looks at how the COVID-19 pandemic has affected London’s property market over the last 12 months. The paper notes that house prices in the capital have climbed 6.2% since the property market was shut down a year ago, the fastest rise since 2016. While national lockdowns wiped 10% from GDP, property prices in the capital soared in the opposite direction – something highly unusual in recessions and will serve to exacerbate the housing affordability crisis at a time of rising unemployment. By comparison, property prices fell by 17.8% in the aftermath of the global financial crisis of 2008 as indebted households sold their homes quickly and cheaply. Despite financial uncertainty, reports of families leaving London in their droves, and the paralysis of the arts, hospitality and tourism sectors, the total value of property in the capital increased during the pandemic to £1.8trn.
Evening Standard (17/03/2021)
According to Halifax, the average London first-time buyer spends £489,098 - compared to just over £200,000 nationally. That means the average first-time buyer would need to save around £25,000 to be able to afford Chancellor Rishi Sunak newly announced 95% mortgage guarantee scheme.
Evening Standard (12/03/2021
Despite most other sectors suffering in 2020, house prices bucked the trend by increasing while the economy shrank, according to a new Office for National Statistics report assessing the damage done by Covid-19. The average UK house price reached a record high of £252,000 in December 2020 — an increase of 8.5% over the year, the ONS said. The surge in house buying at the end of 2020 may reflect the pent-up demand from people who had been unable to buy during the lockdown — and changes to the types of property people wanted such as houses with gardens, the agency added. The ONS said the difference between 2008 and 2020 could be because the former crisis was largely related to “structural issues with financing mortgages… Whereas the fall in GDP in 2020 was possibly driven more by reduced opportunities to spend, caused by lockdown restrictions, rather than primarily a lack of funds.”
The Daily Telegraph (15/03/2021) Daily Star(15/03/2021) City AM (15/03/2021) Daily Mail(15/03/2021)