Latest news with #RosieHooper
Yahoo
5 days ago
- Business
- Yahoo
UK house prices fall in June as stamp duty holiday ends
UK house prices unexpectedly fell by 0.8% in June amid signs of a slowdown in the property sector after the end of the stamp duty holiday. Across the UK, the average house price in June was £271,619. Robert Gardner, Nationwide's chief economist, said: 'UK house price growth slowed to 2.1% in June, from 3.5% in May. Prices declined by 0.8% month-on-month, after taking account of seasonal effects. 'The softening in price growth may reflect weaker demand following the increase in stamp duty at the start of April. Nevertheless, we still expect activity to pick up as the summer progresses, despite ongoing economic uncertainties in the global economy, since underlying conditions for potential home buyers in the UK remain supportive.' Regionally, Northern Ireland remained the strongest performer, though it did see a slowing in annual price growth to 9.7%, from 13.5% in Q1. An average house here came in at £208,686. Scotland recorded a 4.5% annual rise to £189,259, while Wales saw a 2.6% increase to £212,969. Rosie Hooper, chartered financial planner at Quilter Cheviot, said: 'Affordability remains a huge hurdle for many buyers. While the effective interest rate on new mortgages edged down slightly to 4.47% in May, repayments are still considerably higher than just a few years ago. "Many prospective buyers, particularly first-time purchasers, face tough affordability assessments and elevated upfront costs following the changes to stamp duty."Sign in to access your portfolio
Yahoo
21-05-2025
- Business
- Yahoo
Five charts that show why Britain's home ownership dream is dead
Aspiration for home ownership in Britain has fallen to its lowest level in a decade, a landmark survey shows. Research by the HomeOwners Alliance lobby group found concerns over soaring stamp duty bills, leasehold fears and difficulties with downsizing are the worst they have been since 2015. It means just two thirds (64pc) of would-be first-time buyers think owning a property is in reach, compared to 71pc last year. From the whittling away of government support to the postcode lottery of housing availability, Telegraph Money lays bare the death of Britain's homeownership dream in five charts. The drop in housing aspiration coincides with Labour's decision not to extend the first-time buyer stamp duty relief introduced by Liz Truss during her short premiership. Other government-backed schemes have either been scrapped or had their benefits stripped back. For example, the Help to Buy Isa previously allowed savers to put in £200 each month which the Government would then top up by 25pc (capped at £3,000) when they bought their first home. The scheme was closed to new applicants in November 2019. Meanwhile, the lifetime Isa (Lisa) allows savers to put in £4,000 each year which the Government will add a 25pc bonus to, up to a maximum of £1,000 per year. However, it can only be used towards properties that cost £450,000 or less. This threshold has remained frozen since it was introduced in 2017 despite years of house price growth. Rosie Hooper, financial planner at Quilter Cheviot, said: 'Younger people's hopes of getting on the housing ladder have been quietly chipped away as government support has faded. 'What we're left with is a generation facing record house prices, high interest rates and far less support than those who came before them.' Over-60s control more than half of all housing wealth in Britain, accounting for some £2.89 trillion in bricks and mortar. However, those wishing to downsize – and free up property for younger families – find there are scant homes into which they can move. The National House-Building Council warned in 2023 that bungalows were 'on the critically endangered list' as developers prioritised squeezing more properties on to plots of land. Lucian Cook, of estate agent Savills, said the blockades on downsizing were preventing younger generations 'trading up the housing ladder.' He added: 'Despite many older homeowners holding on to properties that are too big for their needs, there is little incentive for them to move during their lifetime.' Savills research shows boomers made up 44p of homeowners but just 18.5pc of buyers last years. It means just one in 57 moved homes. The proportion of people concerned about the leasehold system rose by 22 percentage points to 64pc – the largest increase noted in the survey. Despite Government pledges to reform the system, leaseholders remain trapped in homes they cannot sell due to rapidly rising ground rents and uncapped service charges. Katie Kendrick, of the National Leasehold Campaign Group, said: 'Leasehold has become one of the main reasons for broken chains in the buying and selling process, with leasehold sales taking much longer to complete. Every day in the National Leasehold Campaign, we have reports of sales falling through. It's heartbreaking.' Timothy Douglas, of estate agent trade body Propertymark, said buyers were more aware of issues with leasehold properties thanks to 'education, legislation and news surrounding the subject'. It is up there with Britain's most hated taxes. So it's little surprise stamp duty topped the list of concerns noted by the HomeOwners Alliance survey. Almost two thirds of respondents said they were worried about stamp duty costs, compared to half in 2018. Analysis by estate agency platform Alto found that 41pc of estate agents has seen a drop in first-time buyer registrations, while 18pc recorded a fall in viewings. One agent told the company: 'The stamp duty shake-up was the final straw. It tipped already stretched buyers over the edge.' The tax threshold was lifted by the Conservatives in 2022, but reverted to its previous lower level in April. The average first-time buyer now needs to scrape together thousands of pounds in addition to a house deposit. Alice Haine, of investment platform Bestinvest, said: 'For some aspiring homeowners, that jump in costs may prove to be a step too far. When you consider that rental rates have also increased sharply, it has become harder and harder for aspiring homeowners to set aside the amount they need to secure a home.' The HomeOwners Alliance survey found that housing worries were more acute in Wales than in any other region. Nine in 10 respondents were concerned about first-time buyers' ability to get on the housing ladder in Wales, compared to 76pc in the north of England. Welsh respondents were also far more worried about stamp duty rates and negative equity than anywhere else in Britain. Katherine Binns, of the HomeOwners Alliance, said: 'In Wales, higher concern around negative equity points to fragility in the market and a growing sense that homeownership is becoming less secure or attainable.' By contrast, the leasehold and freehold system was mentioned as a serious issue by 70pc of respondents in the South, compared to 60pc in Scotland. However, Scottish respondents were more likely to report low housing availability than those in any other region. Ms Binns added: 'Major cities like Edinburgh and Glasgow have declared housing emergencies due to severe shortages of affordable housing, escalating private rents and increasing homelessness. 'Given the South and South East's higher proportion of flats, it's no surprise that many buyers find themselves in a Catch-22: a flat may be the affordable option, but they're reluctant to purchase a leasehold with all its complexities and costs. Residents are more exposed to challenges like escalating ground rents and complex service charges, making leasehold reform a pressing regional issue.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Business Mayor
02-05-2025
- Business
- Business Mayor
UK mortgage lending at four-year high amid rush to avoid stamp duty rise
A rush to get property purchases over the line before last month's stamp duty rise pushed UK mortgage lending to a four-year high in March, official data shows. Bank of England figures show that the then-imminent changes to stamp duty in England and Northern Ireland triggered a 290% surge in mortgage borrowing. Separately, Lloyds Banking Group, one of Britain's biggest home loan providers, reported that 27 March was its busiest day ever for mortgage lending. However, the number of mortgage approvals for new home purchases – which is an indicator of future borrowing and is seen by many as a better measure of the housing market's health – fell for the third consecutive month in March, the Bank of England said. On 1 April this year, the stamp duty discounts became less generous, with the 'nil rate' band for first-time buyers falling from £425,000 to £300,000, and other homebuyers seeing a reduction from £250,000 to £125,000. In the weeks and months running up to 1 April, banks experienced a rush in mortgage applications as homebuyers tried to save themselves thousands of pounds in stamp duty costs by getting their deal done before the deadline. The Bank of England data showed that net borrowing of mortgage debt surged by £9.7bn to reach £13bn in March. Overall lending at £39.9bn was the highest since June 2021 – which coincided with the end of another stamp duty holiday in England and Northern Ireland on 30 June 2021, during the coronavirus pandemic. However, many experts were focusing more on the small fall in the number of mortgage approvals for new purchases. Read More Moody's quits Canary Wharf Rosie Hooper, a chartered financial planner at investment firm Quilter Cheviot, said: 'This figure dropped by 800 to 64,300 in March, and given those looking to purchase a new home will have to contend with a significantly higher tax bill going forward, we can expect this decline to continue at pace for some time yet.' Brokers say lenders have been stepping up a mortgage price war, with more providers this week cutting the cost of some of their new fixed-rate deals to below 4%, and a growing number loosening their affordability rules to enable homebuyers to borrow more. Financial markets are expecting the Bank of England to cut interest rates again on 8 May, which could lead to fresh price reductions on new mortgage deals. skip past newsletter promotion Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy. We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion Simon Gammon, managing partner at Knight Frank Finance, said: 'Falling mortgage rates will fuel a rise in activity as the year progresses, providing volatility in global trade policy de-escalates and the UK's economic outlook remains on track.' The Bank of England figures also showed there was a decline in consumer credit borrowing in March. Net borrowing of consumer credit by individuals fell to £0.9bn from £1.3bn in the previous month , with credit card borrowing falling to its lowest level since April 2024. John Dentry, product owner at the banking industry's Current Account Switch Service, said the decline 'may reflect a growing sense of caution among individuals'.
