Page 1

Market focus on positive market news from Belgravia JULY

UK market 1st JULY at a glance House price growth

-9.6%

Time to sell (weeks)

10

Viewings per sale

12

Base rate Mortgage lending

0.5% -37.9%

Repossessions

21%

Housebuilding

-13.9%

Lending index % Year on Year Repossessions index % Year on Year Housebuilding index rolling 12 mnths

Last month... House price growth

-10.3%

Time to sell (weeks)

11

Viewings per sale

13

Base rate Mortgage lending

0.5% -65.3%

Repossessions

41%

Housebuilding

-8.6%

Hometrack records the “turning point” House prices ground to a standstill in June as the number of new buyers increased, the latest housing market survey from Hometrack reveals. Rising sales volumes, a dwindling supply of housing for sale and a continuing increase in demand have all contributed to the standstill. The survey shows the number of new buyers registering with estate agents rose by 4.6% in June, the fifth monthly increase in a row. New buyer registrations have grown by 36% since the start of the year in stark contrast to the same period last year when agents registered an 18% drop in the number of buyers on their books. Sales have also risen by more than 80% since the start of the year, albeit from a low base. One key indicator of market improvement is the average

time homes are on the market. This fell to 9.4 weeks in June compare with 10.4 weeks in April. A third of estate agents said they’ve seen around a 10% increase in properties coming onto the market, in comparison to 6 months ago, according to the latest survey by the National Association of Estate Agents, it states that one in six agents reported up to a 20% increase in June. Figures realeased today by the Nationwide show that in June the average price of a property rose by a seasonally adjusted 0.9% to £156,442, up from £154,016 in May. This brings the annual rate of decline down to 9.3% in June from 11.3% in May. The three month trend is now positive for the first time since December 2007.

Redundancy insurance may help Property prices will rise by an average of 1.4% over the next year according to the BSA's Property Tracker survey, as cautious optimism returns to the housing market. The survey found that respondents’ average prediction for house price changes over the next year was for a 1.4% rise. This represents a fundamental change when compared to a 6.1% fall in March and a 7.1% fall forecast in June 2008. This positive message is reinforced by the survey finding that yet again, an increased proportion of people

believe that now is a good time to buy. ..59% of people agree or tend to agree that now is a good time to buy, compared to 54% in March and just 27% in June 2008. However, findings confirmed that a lack of job security remains the greatest barrier to property purchase. It was chosen by 61% of respondents, the same proportion as in March. There are still some relatively cheap ASU products on the market, providing the purchaser does not work for a company which is planning redundancies. Call 0800854884 for details.


Market focus on positive market news

Economists see pause in recession — The FT The recession is over for now, the majority of City economists polled by the Financial Times believe. In a survey conducted at the end of last week, 11 out of 20 economists said the economy had stopped contracting in June and was likely to start growing in coming months. The majority of those believing the economy was still shrinking thought the bottom of the downturn was near. The survey suggests the government’s forecast in the Budget that growth would return only by the 4th quarter of this year may have been too pessimistic. Their growing cheer is at odds with the more gloomy tone struck by Mervyn King, Bank governor. The last time analysts met members of the monetary policy com-

mittee for a similar event last autumn, the Bank was slow to acknowledge the recession had begun – and the City is beginning to think the Bank once again risks being behind the times. Alan Clarke of BNP Paribas told the FT: “The outlook for gross domestic product over the remainder of the year has improved dramatically ... the recession is over.” The increasing optimism among economists is also reflected in the wider population. In last week’s Nationwide consumer confidence indicator, as many respondents thought the economic situation in 6 months’ time would be better than today as believed the outlook would be worse. As recently as March, the same survey showed twice as

many respondents gloomy about the UK’s economic prospects than those who were optimistic. City economists have been swayed by a raft of better-thanexpected figures ranging from stable official manufacturing and service sector output figures in March and indications from surveys of purchasing managers that order books are once again rising. Britain's businesses are regaining faith in the UK economy, according to the latest Lloyds TSB Corporate Markets Business Barometer. The survey shows that, in May, confidence levels amongst businesses across the UK improved for the third consecutive month, hitting their highest levels in almost a year.

Lending edges beyond 85% No deposit : no mortgage….. The UK is running out of buyers with a min of 10% or 15% in new build. However, the market economy is slowly adapting to the changing fortunes of the UK housing market. As prices stabilize confidence to lend is returning, albeit slowly. The Nationwide has announced it is expanding its mortgage range for customers with only

a 5% deposit. The group is launching new two- and three-year tracker and fixed rate deals for existing customers who are coming to the end of their mortgage deal or who are already on its base mortgage rate. There are now six other 95 per cent mortgages from a variety of lenders. All are poor deals but they at 95%. Britannia is re-launching a 90% LTV option across its mortgage range but through its branches only.

Available immediately, borrowers can access two, three, five, ten and 15-year fixed-rate deals with a choice of three LTV bands, up to 60%, up to 75% and up to 90%. As valuations improve, lenders have more confidence to lend beyond 85%. We need more homes to meet UK demand and as this will come from house builders, future prospects for lending to new build are improving.

A duck walks into a pub and orders a pint of lager and a ham sandwich. The landlord looks at him and says, "But you're a duck!" "And you talk!" ... “We don't get many talking, beer drinking, ducks in this pub. What are you doing round this way?" "I'm working on the building site across the road" explains the duck. Just as the duck was about to leave the landlord remembers that the local circus had been recruiting & were offering good money. He mentions the circus to the talking, beer drinking duck, who replied, "The circus? That place with the big tent? all the animals? the big canvas roof and all the cages?" "Exactly!" says the landlord. The duck looks confused. "So why do they want with a plasterer?" Belgravia Wealth Management is an introducer to GSR Finance which is an appointed representative of Home of Choice Ltd which is authorised and regulated by the Financial Services Authority Your home may be repossessed if you do not keep up repayments on your mortgage

Page 2


Specialist new homes mortgage advisers

• Free phone 0800 854884 • Email

Gillian.ray@belgraviawm.com • Free advice line 7 days a week

The smart way to buy your new home Free mortgage advice line 0800 854884

• Check out immediately ... − monthly costs − maximum mortgage • Shared equity specialists • Help from enquiry to completion

Ask about our free building & contents cover

Ask about our free unemployment cover Call me

Ask about our free

0800 854884

home buy internet tools

Belgravia Wealth Management is an introducer to GSR Finance which is an appointed representative of Home of Choice ltd which is authorised and regulated by the Financial Services Authority. Redwither Business Centre, Redwither Business Park, Wrexham, LL13 9XR Your home may be repossessed if you do not keep up repayments on your mortgage


Belgravia mortgage service is delighted to offer you our unique house buyers tool kit The service is complementary. Simply log on to www.macmedias.com You will have all the tools you need to buy your new home... • Valuation tool courtesy of Hometrack, • Immediate access to sites like Rightmove without

having to re-key a search • Monthly payment and affordability calculators together with a legal fees & stamp duty calculator There is even free access to some games to keep the kids quiet or just to help you relax and enjoy the nostalgia.

Call Belgravia on 0800 854884

Log onto www.macmedias.com

Belgravia Wealth Management is an introducer to GSR Finance which is an appointed representative of Home of Choice ltd which is authorised and regulated by the Financial Services Authority. Redwither Business Centre, Redwither Business Park, Wrexham, LL13 9XR Your home may be repossessed if you do not keep up repayments on your mortgage


Belgravia Wealth Management is an introducer to GSR Finance which is an appointed representative of Home of Choice ltd which is authorised and regulated by the Financial Services Authority. Redwither Business Centre, Redwither Business Park, Wrexham, LL13 9XR Your home may be repossessed if you do not keep up repayments on your mortgage


July Focus  

a positive focus on news relating to the new homes market

Advertisement
Read more
Read more
Similar to
Popular now
Just for you