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House prices fell 1.7% in May from the previous month to an average of £218,902, the largest monthly fall for 11 years, according to Nationwide. The annual growth rate slowed to 1.8%, down from 3.7% in April and the slowest since December. Recent Nationwide research indicated that one in eight people had put off moving because of the lockdown. The drop in Nationwide's house price index in May "is just the start of a protracted decline over the remainder of this year," said Samuel Tombs, chief UK economist at Pantheon Macroeconomics. Nationwide said potential buyers were now planning to wait six months on average before looking to enter the market, and 12% of the population had put off moving because of the lockdown.
The Times (02/06/2020) Daily Mail (02/06/2020) The Guardian (02/06/2020) City AM (02/06/2020)
The number of mortgage approvals fell to a record low in April, Bank of England figures show. Some 15,848 mortgage approvals for house purchase were recorded - 80% below February levels before coronavirus lockdown measures were imposed, around half the number of approvals during the 2008 financial crisis, and the lowest since figures started in 1993. Approvals for re-mortgaging also fell in April, the Bank said, to 34,400 – 34% lower than in February. The BoE report said: "Weakness in the housing market associated with COVID-19 was reflected in weak mortgage market activity in April."
City AM (02/06/2020) Evening Standard (02/06/2020) Daily Mail (02/06/2020)
Homeowners who take advantage of the extended mortgage holiday scheme should have their credit files marked, the Nationwide has said. Lenders look at somebody's credit rating when deciding whether to agree to a fresh loan or contract and the interest rate they will charge. Joe Garner, chief executive of the Nationwide Building Society, said an extension to the mortgage break may signal a borrower was "struggling". He commented as the UK's largest mutual announced a plunge in profits. Its statutory pre-tax profit fell to £466m in the year to April, compared with £833m the previous year. The building society said it had already faced pressure on its profits before it took a £101m hit as a direct result of coronavirus.
BBC News (29/05/2020) The Daily Telegraph (29/05/2020)
The government has agreed to quash planning permission for Northern & Shell’s 1,524-home Westferry Printworks scheme from Northern & Shell. Tower Hamlets, the planning authority for the scheme, launched a legal case against the government on the basis that the date of the decision allowed the developer to avoid between £30m and £50m in additional planning obligations which would have applied if it had been approved the following day. The charges would have applied as Tower Hamlets was due to bring in a new Community Infrastructure Levy charging schedule. The government has now allowed the decision to be quashed following a request by Tower Hamlets as part of the legal proceedings that it disclose correspondence between the government and the developer over the decision.
Building (27/05/2020)
House prices are predicted to drop for the first time since September as a consequence of COVID-19, according to Nationwide. The lender is expected to say this week that house prices fell by 1% this month, compared to a 0.7% increase in April. Economists add that annual house price growth for April, as measured by the Nationwide House Price Index, is likely to come in at 2.8%. House prices had been surging before the coronavirus lockdown, which effectively shut down the market by stopping people going to viewings.
Sunday Express (24/05/2020)
The government has confirmed that homeowners who are still unable to pay their mortgage because of the COVID-19 crisis will now be eligible for a further three month repayment holiday. An initial three month mortgage holiday scheme was set up in March and ministers have now decided to extend it. The deadline for applying for an initial repayment break is also being extended to October 31. However, where people can afford to restart payments they are being encouraged to do so, even if it is not for the full normal monthly amount. “We’re doing everything we can to help people with their finances at this difficult time, and that includes making sure people get the support they need with their mortgages,” commented John Glen, the Economic Secretary to the Treasury. Meanwhile, experts warn that those who opt for the full six-month break could pay £948 in extra interest over the term of their loan.
Daily Mail (22/05/2020) The Guardian, (22/05/2020) The Times (22/05/2020)