Even more
interesting, was that most of the difference was in Q2, as £68.12bn was lent by
UK banks in new mortgages for house purchases, which is the highest it has been
for 2 years.
Looking locally, in Stamford last quarter, £501.6m was loaned on PE9 properties alone!
Looking locally, in Stamford last quarter, £501.6m was loaned on PE9 properties alone!
Even though
the Bank of England are imminently due to release the Q3 figures, as I
discussed a few weeks ago, HMRC have published their own preliminary data to
suggest Q3 will be even better, with a massive growth of buy-to-let landlords
to the housing market in that time frame. Fascinating, as it seems to fly in the face of
the popular narrative – that the uncertainty surrounding Brexit would
negatively impact buyer sentiment.
And it’s not
just buy-to-let landlords that seem to be flourishing. I am finding that 1st time buyers
are also a lot more confident too. Low,
and now negative, inflation has had a tangible impact on household finances and
1st time buyers feel more secure in their jobs. Coupled with a low
interest rate environment and you have all the ingredients for a strengthening
property market. To back that up with
numbers, of the £68.12bn of mortgages lent in the Quarter (Q2), £14.9bn was
lent to 1st time buyers (the highest proportion of that overall
lending for over 2 years at 21.99%).
When I
looked at the data for South Kesteven District Council (SKDC) area, the average
price paid by 1st time buyers was £156,297, which is a rise of 2.18%
from last month and a rise of 6.91% to 12 months ago. The Land Registry then categorise the
remaining buyers into cash buyers or those buying with a mortgage. The average price paid by cash buyers was
£178,438, a rise of 2.11% from last month and a rise of 6.69% to 12 months ago,
whilst buyers with mortgages (but not 1st time buyers), the average
price paid by them was £194,003, a rise of 2.2% from last month and a rise of
6.79% to 12 months ago.
What
surprised me with these figures was how close the property prices, values and
percentages were to each other. It just
goes to show the combination of low mortgage rates and a stable job market will
continue to have a positive effect on the Stamford and UK market. And
that is why, while there is undoubtedly more cautiousness in the market at present
than a year or so ago (among borrowers and mortgage companies alike) - mortgage
rates are so competitive that they are inducing people to commit to a home
purchase.
It seems the great Brexit uncertainty was over hyped, and house price growth as well as mortgage approvals, could pick up pace into 2017.
If you
are considering purchasing an investment property, or would like to discuss one
you already own, please get in touch with me.
I am more than happy to discuss any property with you.
David Crooke
UPP Property Agents - For professional advice on buying, selling, renting and managing your homes and property investments.
SALES & LETTING AGENTS
Email: david@upp-property.co.uk
Stamford: 01780 484 554 Oakham: 01572 725 825
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