Lending for house purchase last year was the lowest for 38 years, the Council of Mortgage Lenders has reported.
It has also criticised the Government for ‘less helpful’ policies towards the housing and mortgage markets, which it says will increase repossessions.
Martijn van der Jeijden, chairman of the CML, says in his introduction to the CML’s annual report for 2011, that cuts in State support for borrowers in difficulty will put ‘upward pressure on mortgage arrears and repossessions in 2012 and beyond’.
He also criticised the Government’s ‘insistence that its welfare reforms should entail paying housing benefit to tenants rather than landlords’, saying that this would discourage lenders.
Van der Jeijden, who describes last year as ‘challenging’ for the UK economy, borrowers and lenders, is also critical of the FSA’s proposed reforms. He says: “It is clear that we still have a great deal to do to help deliver the right kind of regulatory reform which does not unnecessarily constrain the mortgage market.”
The report shows that there were 508,000 house purchase loans last year, down from 538,000 in 2010 – and the lowest annual total since 1974. Lending to first-time buyers slipped by 2% last year, compared with 2010.
Altogether, says the CML, there were 870,000 properties purchased last year, including cash purchases and buy-to-let.
Buy-to-let lending was the only sector that grew, expanding by 40% – with £14.1bn advanced, up from £10.01bn the year before. Even so, it remains subdued, and far down on the £45bn buy-to-let loans in 2007. Altogether, there were 124,000 buy-to-let loans last year, a 32% increase in number on 2010.
Remortgaging also grew, up by 18% to reach £46.7bn.
The CML’s annual report also criticises the European Commission for trying to impose its directive on credit agreements relating to residential property on the UK market.
It calls the Commission fundamentally misguided in its attempts to create a single mortgage market in Europe. Under the directive, buy-to-let mortgages would be treated like ordinary residential mortgages and assessed on the borrower’s income, but not on rents. The CML wants buy-to-let lending to remain outside the scope of regulation for the home-ownership market.
Wednesday, 9 May 2012
Rightmove post strong start to 2012
Rightmove this morning announced a bullish performance to its shareholders after hiking its prices to agents.
It said that the business continues to trade in line ‘with the strong start to 2012’, with Rightmove traffic setting new records and up 20% on the same time last year.
The interim management statement, covering January 1 to May 9, said that average revenue per advertiser ‘has grown strongly as a result of sales of additional advertising products and price increases’.
It reported that over 75% of agents are now taking at least one additional product and that over 30% of their spend in April was on additional advertising products.
The statement added that Rightmove’s operating costs remain low.
It concluded: “Subject to their being no significant decline in the UK housing market, the Board remains confident of meeting its expectations.”
In February, Rightmove reported its results for last year, highlighting a profit margin of just over 71%. It will be paying a dividend to shareholders for 2011 next month, on June 8.
Last week, its shares hit a 52-week high of 1,600p after analysts upgraded the property portal in advance of today’s trading update. The analysts said Rightmove’s returns to shareholders remained ‘very high’, with no signs of cost pressure.
Panmure Gordon hiked its target price to 1,780p, whilst Alex DeGroote said Rightmove is proving itself capable of delivering good earnings per share without any growth in volume or clients.
However, the shares quickly retreated from their peak and stood at 1,470 at yesterday’s close.
It said that the business continues to trade in line ‘with the strong start to 2012’, with Rightmove traffic setting new records and up 20% on the same time last year.
The interim management statement, covering January 1 to May 9, said that average revenue per advertiser ‘has grown strongly as a result of sales of additional advertising products and price increases’.
It reported that over 75% of agents are now taking at least one additional product and that over 30% of their spend in April was on additional advertising products.
The statement added that Rightmove’s operating costs remain low.
It concluded: “Subject to their being no significant decline in the UK housing market, the Board remains confident of meeting its expectations.”
In February, Rightmove reported its results for last year, highlighting a profit margin of just over 71%. It will be paying a dividend to shareholders for 2011 next month, on June 8.
Last week, its shares hit a 52-week high of 1,600p after analysts upgraded the property portal in advance of today’s trading update. The analysts said Rightmove’s returns to shareholders remained ‘very high’, with no signs of cost pressure.
Panmure Gordon hiked its target price to 1,780p, whilst Alex DeGroote said Rightmove is proving itself capable of delivering good earnings per share without any growth in volume or clients.
However, the shares quickly retreated from their peak and stood at 1,470 at yesterday’s close.
Saturday, 21 January 2012
Rightmove announces new record in site traffic
Rightmove has announced an all-time record of visitors to its site, with over 34 million pages of traffic on Monday.
The site, which claims market share of 84% among the top four property portals, says this was the second time in a fortnight that the record has been broken, after a high of 33.4 million pages was set on Tuesday, January 3.
Rightmove director Miles Shipside said: “It seems like a popular New Year’s resolution must be to move home in 2012. The obvious next step for the British public is to jump on to Rightmove to see if they can turn their resolutions into reality.
“The record traffic on Rightmove is also an indicator of underlying demand, if and when the mortgage famine should ease.”
The record day included around 15% of traffic from Rightmove’s mobile platforms.
This early-year activity on Rightmove mirrors 2011 when a new record of 28 million pages was set on January 10.
Meanwhile, the NAEA has urged its members to write to the OFT about the proposed merger between Zoopla and Digital. Its email asks agents to mention the NAEA’s own website, PropertyLive, and the fact that the site is free to members.
The site, which claims market share of 84% among the top four property portals, says this was the second time in a fortnight that the record has been broken, after a high of 33.4 million pages was set on Tuesday, January 3.
Rightmove director Miles Shipside said: “It seems like a popular New Year’s resolution must be to move home in 2012. The obvious next step for the British public is to jump on to Rightmove to see if they can turn their resolutions into reality.
“The record traffic on Rightmove is also an indicator of underlying demand, if and when the mortgage famine should ease.”
The record day included around 15% of traffic from Rightmove’s mobile platforms.
This early-year activity on Rightmove mirrors 2011 when a new record of 28 million pages was set on January 10.
Meanwhile, the NAEA has urged its members to write to the OFT about the proposed merger between Zoopla and Digital. Its email asks agents to mention the NAEA’s own website, PropertyLive, and the fact that the site is free to members.
Thursday, 5 January 2012
Some new properties to buy or rent from REW
We've had a busy December and January so far. Here is a selection of some of those new instructions, a mixture of rentals and sales;
| Pengwern Grove L15 |
| Damwood Rd L24 |
| Cranwell Rd L25 |
| Hillingdon Rd L15 |
| Baileys Lane L26 |
| Lambton Rd L17 |
| Stairhaven Rd L18 |
| Maidstone Close L25 |
| Mines Ave L17 |
| Bowden Rd L19 |
| Buckingham Ave L18 |
| Rocky La L16 |
| Verdala Park L18 |
| Rocky La L7 |
| Melbreck Ave L18 |
| St Ambrose Grove L4 |
| St Michaels Church Road L17 |
| Acorn Court L8 |
| Critchley Rd L24 |
| Millwood Rd L24 |
| Hunts cross Ave L25 |
| Byron Ct L25 |
| Belle Vue Rd L25 |
| Minster Court L8 |
| Kingfield Road L9 |
| Hartsbourne Ave L25 |
| Vyner Road North L25 |
| Earp Street L19 |
| Talland Close L26 |
| Lambton Rd L17 |
| Bluefields Street L8 Check all of these on our website at http://www.rewproperty.co.uk/ or go the property portal at http://www.rightmove.co.uk/ |
Friday, 23 December 2011
A Merry Xmas and a Happy New Year to All
I would like to take this opportunity to wish everyone a Merry Christmas and a Happy and Prosperous New Year. A list not too long, but I would like to thank all our customers, suppliers, staff and anyone we have come into contact with over the year and infact the past 150ish years of doing business in Liverpool as Roberts & Edwards, or JH Worrall and since 1955 Roberts, Edwards & Worrall. We are always happy to assist and answer any of your property related questions. Our advice as always is FREE!
Enjoy your Christmas holidays and we look forward to working with you in 2012!
Michael Siely
Managing Director
Roberts, Edwards & Worrall
Enjoy your Christmas holidays and we look forward to working with you in 2012!
Michael Siely
Managing Director
Roberts, Edwards & Worrall
Monday, 5 December 2011
Public refuses to believe that house prices have gone down
Consumers have given a decisive clue as to why asking prices have been slow to register any decline – most simply do not believe that house prices will go down.
Indeed, more than one in five confidently expect them to go up.
Whilst Rightmove has finally reported a dip (of 3.1%) in asking prices within the last month, asking prices have still held up remarkably well. They are 1.2% up on a year ago, and at £232,144 are some £70,000 ahead of ‘actual’ prices reported by the Land Registry.
But while agents have been in the firing line for alleged over-pricing, a new survey –ironically by Rightmove, which frequently tears its hair out over the issue – goes some way towards solving the mystery of the reality gap.
The massive poll, of over 26,300 consumers, shows that two-thirds (63%) do not believe house prices will be lower in a year’s time than they are now. They expect them to remain the same or, according to 22%, to be higher.
Less than one-third (three in ten) expect lower prices – unchanged from a year ago.
Despite ongoing economic gloom, the optimism among consumers is almost universal. While Londoners are the most optimistic, with 29% of consumers expecting higher house prices in 12 months’ time, in Wales – the most pessimistic regions – only 35% are predicting price drops over the coming year.
A baffled-sounding Miles Shipside, director of Rightmove, said: “The public’s belief in the value of bricks and mortar seems to defy the deteriorating economic situation. This is a clear message that the majority of consumers view the property asset class to be as ‘safe as houses’ in these times of economic uncertainty.”
He added: “It should be remembered that in spite of the overall confidence expressed in this survey for property prices, transactions volumes are still well down on historic norms. Economic stability in the UK and Eurozone will be needed before many are willing or able to re-engage with the property market.”
The survey did, however, reveal some extremely localised opinions.
For example, in the North-West 26% of respondents in Preston expect prices to be higher in 12 months’ time, compared with just 14% in Lancaster only 20 miles away.
Shipside said: “Local variations highlight how patchy confidence can be, depending on an area’s housing mix and wealth demographics.
“The wealthier middle-to-upper price brackets may be feeling fairly blast-proof from any further economic eruptions, and see a less turbulent outlook.
“Meanwhile, some of the more cash-strapped terrace and semi dwellers may feel far more exposed to the negative pressures of reduced mortgage availability and job uncertainty.”
Indeed, more than one in five confidently expect them to go up.
Whilst Rightmove has finally reported a dip (of 3.1%) in asking prices within the last month, asking prices have still held up remarkably well. They are 1.2% up on a year ago, and at £232,144 are some £70,000 ahead of ‘actual’ prices reported by the Land Registry.
But while agents have been in the firing line for alleged over-pricing, a new survey –ironically by Rightmove, which frequently tears its hair out over the issue – goes some way towards solving the mystery of the reality gap.
The massive poll, of over 26,300 consumers, shows that two-thirds (63%) do not believe house prices will be lower in a year’s time than they are now. They expect them to remain the same or, according to 22%, to be higher.
Less than one-third (three in ten) expect lower prices – unchanged from a year ago.
Despite ongoing economic gloom, the optimism among consumers is almost universal. While Londoners are the most optimistic, with 29% of consumers expecting higher house prices in 12 months’ time, in Wales – the most pessimistic regions – only 35% are predicting price drops over the coming year.
A baffled-sounding Miles Shipside, director of Rightmove, said: “The public’s belief in the value of bricks and mortar seems to defy the deteriorating economic situation. This is a clear message that the majority of consumers view the property asset class to be as ‘safe as houses’ in these times of economic uncertainty.”
He added: “It should be remembered that in spite of the overall confidence expressed in this survey for property prices, transactions volumes are still well down on historic norms. Economic stability in the UK and Eurozone will be needed before many are willing or able to re-engage with the property market.”
The survey did, however, reveal some extremely localised opinions.
For example, in the North-West 26% of respondents in Preston expect prices to be higher in 12 months’ time, compared with just 14% in Lancaster only 20 miles away.
Shipside said: “Local variations highlight how patchy confidence can be, depending on an area’s housing mix and wealth demographics.
“The wealthier middle-to-upper price brackets may be feeling fairly blast-proof from any further economic eruptions, and see a less turbulent outlook.
“Meanwhile, some of the more cash-strapped terrace and semi dwellers may feel far more exposed to the negative pressures of reduced mortgage availability and job uncertainty.”
Friday, 25 November 2011
Bellefield launch by Bellway Homes
I was invited to the launch of the new Bellefield development by Bellway homes last night. Bellefield, the ex training Facility for Everton FC for over 50 years, has been bought by Bellway homes, the national housebuilder and will be developed into 74,four and five bedroom detached executive properties. The launch took place in the amazing Sakura Japanese restaurant on Exchange Flags in Liverpool. It was great to see some Everton FC legends at the launch as well as the Bellway Execs and sales team. Loads of photos were taken so I'll get some and post here soon. In the meantime check out this great new development at Bellefield.
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