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Homeowners used their savings to reduce mortgages at a record rate in the final quarter of last year. Nearly £18bn of mortgage debt was repaid in the last three months of 2020, according to analysis of official data by the Equity Release Council. Homeowners made £5.1bn in lump sum payments, the highest figure since 2007. The payments were fuelled by the record level of savings that people have built up during the pandemic, as opportunities to spend dwindled in lockdown. Although overpayments soared, regular loan repayments remained below pre-pandemic levels as some mortgage-holders continued to defer in the face of financial pressures. “Mortgage holders across the nation have been polarised by the experience of the pandemic,” says Jim Boyd, chief executive of the Equity Release Council.
The Times (12/03/2021) Daily Mail (12/03/2021)
House prices dropped slightly for the second consecutive month in February, according to Halifax. The lender’s latest housing index shows that property values fell by 0.1% month-on-month in February, following a 0.4% decrease in January. However, across the UK, property values were still 5.2% higher in February than the same month last year, Halifax said. However, the bank cautioned that it would not expect the level of growth seen in house prices across 2020 to be sustained throughout this year. The average UK house price in February was £251,697. Russell Galley, Managing Director, Halifax, said the housing market has continued its “softer start to 2021” with average prices dropping off slightly compared to the previous month. He continued: "However, with annual house price inflation currently at +5.2%, property values remain comfortably higher than 12 months ago, when February was the last full month before lockdown.”
Evening Standard (05/08/2021) Daily Express (05/08/2021) Daily Mail (05/08/2021) BBC News (05/08/2021) The Daily Telegraph (05/08/2021)
Homebuyers taking advantage of the Government's new 95% mortgage scheme could end up paying premium rates, experts have warned. The plans will allow buyers to secure properties worth up to £600,000 with just a 5% deposit. It was hoped that the Government's guarantee behind the loans would help to lower rates from what is currently being offered by risk-averse banks. But brokers have warned that lenders could continue to charge higher rates, leading to pricey monthly instalments. Mark Harris of SPF Private Clients, a mortgage broker, estimated that rates for a five-year fixed deal could be between 3.5% and 4%, while Martin Stewart of advice firm London Money said they could be even higher. The average quoted mortgage rate for a 95% mortgage was 4.07% in January 2021, according to the Bank of England.
The Daily Telegraph (08/03/2021)
The total value of new mortgages set to be handed out in the coming months reached its highest level since 2007 towards the end of last year, Bank of England figures show. New mortgage commitments in the fourth quarter of 2020 totalled £87.7bn – however, the share of mortgages advanced to borrowers with deposits of less than 10% was 1.2%, marking “the lowest level since these statistics began in 2007”. Gross lending totalled £249bn in 2020, showing a 9.8% fall compared with 2019 (£276bn).
Evening Telegraph (10/03/2021) Daily Express (10/03/2021)
Caledonian Modular has confirmed the award of a contract package for a 279-key aparthotel in Canary Wharf, London. Canary Wharf Contractors is delivering the main build after a £74m development loan was secured by Canary Wharf Group and hospitality group edyn. The 20-storey Locke aparthotel is to be built at One Charter Street on Wood Wharf, Canary Wharf’s new mixed-use district. The job involves building 17 floors of volumetric modular serviced apartments over a retail/amenity space in the lower podium levels. The scheme will be crowned with a rooftop restaurant providing a unique dining experience with prime views over London City.
Construction Enquirer (01/03/2021)
The effects of the pandemic have hit demand for flats in London. In January, asking prices for inner and outer London flats were down 16.2% and 6.7% respectively compared with May 2020, according to data company TwentyCi. The proportion of flats sold has fallen too, as consumer demand quickly changed, favouring a house with a garden in the outskirts over a small flat in a handy location. Despite the headwinds facing the London flat market, pent-up demand from the shutdown last year, and the added incentive of the stamp duty holiday, have still boosted sales; TwentyCi found that in December, agreed sales for inner London flats were up 40%, going on to rise 8% year-on-year in January.
The Daily Telegraph (26/02/2021)