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Manchester Leads UK Property Boom

Manchester Leads UK Property Boom

Manchester Leads UK Property Boom

Increasing property prices are not just a phenomenon belonging to London and the South-East of England, as new data from Nationwide shows that all UK regions are now enjoying increasing property prices as the property boom continues to gather pace.

Every region across the UK saw property prices increase year-on-year, ranging from a 14.9% annual increase in London to a 1.9% uplift in the North.

Nationwide reported that property values increased by an average of 8.4% across the whole of the UK in 2013, as the market revival became increasingly broad-based, but Manchester emerged as the property boom city, with property prices up by 21% over the last year, to reach an average value of £209,627 (GBP).

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UK Buy-To-Let Mortgage numbers up 84,000 on 2010 figures

UK Buy-To-Let Booming Again!

2011 saw the number of UK residential properties bought using Buy To Let mortgages rise by 84,000 on 2010 figures.

Council of Mortgage Lenders (CML) figures show that landlords advanced a total of 34,800 buy to mortgages in the last three months of 2011 alone, with a total value of more than £4 Billion (GBP).

Therefore buy to let mortgage lending now accounts for almost 13% of the total outstanding value of all residential mortgages in the UK.

CML Director General, Paul Smee said “Buy-to-let lending continues to perform well. Demand for rented property remains high, so the rationale for buy-to-let remains strong and there is little reason to foresee any change to this positive outlook for the UK private rental sector.”

With improvements in the general availability of Buy-To-Let mortgage products, better tenant referencing and the introduction of specialist insurance policies such as Rent Guarantee Insurance, landlords are likely to have a few less financial worries, so, the PRS Buy To Let mortgage figures are very likely to rise again this year.

There are currently more buy to let mortgage products available than at any time since the onset of the financial downturn in 2007 and specialist mortgage lenders recently referred to 2012 as being ‘a boom time for landlords’.

New data released by the UK’s Council of Mortgage Lenders (CML) shows that Monthly mortgage payments on residential properties in October 2011 were the most affordable for nearly eight years, but due to increased regulation, lending numbers dropped.

Although First-Time Buyers’ (FTB) deposit requirements have remained stable in recent months at an average of 20%, their monthly interest payments have continued to fall and now typically consume 12.3% of income, the lowest level since January 2004.

Affordability for movers also improved, with this group paying an average of 9.2% of income on mortgage interest, the lowest level since monthly records began in 2002. However, despite the improved affordability of monthly mortgage payments, lending activity has slowed.

In October 2011, 44,500 loans for house purchase were advanced, down from 48,200 in September and from 46,900 in October 2010.

Of the 44,500 loans, 16,400 went to first-time buyers, down from 18,200 in September 2011, down 1% on October last year.

Mortgage affordability is one thing, but the lack of deposits remains a major factor in holding back the housing market, especially for first-time buyers.

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Despite the apparent slump in the UK property market, Nationwide Building Society’s gross mortgage lending figures have increased by 48% to £8.9 Billion (GBP) in the six months to September.

Despite the dwindling number of First-Time Buyers (FTB) in the UK property marketplace, Nationwide lent them more than £1.2 Billion (GBP) in the first half of this year, 3% more than last year.

Over the same period, Nationwide’s subsidiary The Mortgage Works (TMW) doubled its gross mortgage lending to £2.6 Billion (GBP).

Nationwide’s Chief Executive Graham Beale, said: “It is particularly pleasing to see a 48% increase in our gross mortgage lending, which demonstrates our commitment to supporting growth in the economy as well as meeting the needs of our borrowers”.

Nationwide also reported a 17% rise in underlying pre-tax profits to £172 Million (GBP) in the six months to the end of September 2011, compared with the same period in 2010.

Even though historically low Bank of England (BoE) interest rates are making life difficult for savers, the building society saw a 250% increase in the rate of cash deposited in its savings accounts to £1.4 Billion (GBP), making it the second largest savings provider in the UK.

Despite the positive results, Nationwide expects conditions to remain difficult until the current Eurozone crisis is resolved and the UK economy stabilises.

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