Housing market starting to “hot up” as mortgage approvals soar to a 15-month high July 24, 2015 The housing market is beginning to heat up again as mortgage approvals rose for the sixth consecutive month in June, taking them to a 15-month high. Figures released today by the British Bankers Association showed the number of mortgage approvals rose to 44,488 last month, from 42,876 in May. Remortgaging rose 20 per cent in the [...]
Interest rate rise by the Bank of England is the “greatest risk” to house prices July 24, 2015 House price growth for this year is on track to hit double-digit figures in a number of cities across Britain – providing the Bank of England doesn't hike interest rates anytime soon. House prices in the 20 cities monitored by Hometrack's cities house price index rose 6.3 per cent in the first half of 2015, and look set [...]
Bashing buy-to-let landlords will push up rents and hit the UK economy hard July 23, 2015 Buy-to-let landlords have a huge advantage in the market as they can offset their mortgage interest payments against their income, whereas homebuyers cannot.” That’s how the chancellor explained his decision in the Budget to require that landlords, unlike other businesses, effectively pay tax on their borrowings – their buy-to-let mortgage. But the chancellor has made [...]
The Bank of England could – and should– have raised UK interest rates much sooner July 20, 2015 Heartening as it was to hear the governor of the Bank of England, Mark Carney, dropping hints last week about the raising of Bank Rate, serious doubts remain over the effectiveness of the low interest rate regime in reviving the economy. Moreover, the impression continues to be given that the delay in raising rates carries [...]
Home extensions pile on the pounds to property values July 20, 2015 The alterations and extensions made to people's homes have added billions of pounds to property prices across Britain. Over the last 12 months, the work has added a combined £6.5bn to the value of homes, as nearly a quarter of a million owners made changes, adding around £30,000 per property on average. In London, where homeowners have [...]
Best of the Brokers for 20 July 2015 July 19, 2015 To appear in Best of the Brokers, email your research to notes@cityam.com DIXONS CARPHONE Numis reiterated its “add” rating on the retailer, noting that the group posted strong underlying profit growth during 2015, “a period of significant corporate change” as the broker described it. Numis added that the merger process continues to run smoothly and [...]
Why the Bank of England would be wrong to raise interest rates this year July 19, 2015 At a time when central banks all around the world are stimulating their economies through monetary and/or quantitative easing it's madness that the Bank of England is considering raising interest rates – and if anything the next move should probably be a cut to 0.25 per cent. The Bank of Canada cut rates last week citing a sluggish recovery [...]
Good news for landlords: Rents are rising faster than house prices July 17, 2015 All right, so landlords might have been hit by the Chancellor's new rules on mortgage tax relief – but rents might just help to make up for that, after they rocketed 5.6 per cent in the year to June – the fastest rise since 2009. Read more: Landlord it by Summer Budget proposals? Here's what [...]
Ex-MPC member Danny Blanchflower says rate rise would harm the UK July 17, 2015 Former Bank of England policymaker Danny Blanchflower has warned that an interest rate rise in the near future would harm the UK. Read more: Carney fuels speculation of 2015 interest rate hike "It may well be that the Fed [US Federal Reserve] is going to put off raising so it seems rather strange that Carney is [...]
London and UK house prices rise: First-time buyers face stiffest competition as average home in capital hits £615,115 July 16, 2015 London house prices climbed 7.8 per cent over the past 12 months, new figures show, with demand outstripping supply most heavily in the first-time buyer market. The average greater London house price is currently £615,115, according to data published today by Rightmove. Properties at the top end of the market have seen the biggest 12-month [...]