May 31, 2016
London property scene motors on
Property news: No deposit mortgages make a return
The world of property recently welcomed the 100% mortgage back in from the cold.
Barclays is the first lender to offer a no deposit mortgage since the financial crisis. Pre-2008 these types of mortgages were more commonplace.
The offer allows buyers to secure a three-year fixed-rate mortgage at 2.99%, without having to pay a deposit.
There is a catch, though. At the same time the buyer applies for the mortgage, a ‘helper’ is required to open a Barclays savings account and deposit 10% of the property purchase price.
The savings will be released after three years, providing the borrower has kept up to date with their repayments.
Sales update: Record asking prices and a Referendum slowdown, or not?
And so to the sales market where once again Rightmove has reported that the average asking price of properties being listed on its platform is at a record high.
It calculates that the average UK asking price is now £308,151, up 0.4% from April. Annually prices are now up by 7.8%.
Interestingly, across the whole of London the average asking price dipped slightly in May, from £646,200 to 644,088.
However, asking prices in the capital are still over 10% higher than they were this time last year.
So prices have continued to rise in 2016, but is the prospect of the EU Referendum likely to cause a slowdown?
The latest report from the Royal Institution of Chartered Surveyors (RICS) shows there has been a fall in the number of enquiries from potential buyers recently.
RICS predicts that the Referendum will be responsible for a dip in house price rises over the next three months but that it expects a more ‘normal’ market afterwards.
Lettings update: A surge in lets as average London tenancy length is revealed
In the lettings market, it seems the landscape is now being shaped by the introduction of the stamp duty surcharge which encouraged many landlords to expand their portfolios before April 1.
According to analysis of the Rightmove listings, there were 11.5% more properties to let available on the website in April when compared with the previous month.
In London, the number of listings increased by 9.1% between March and April.
So there’s currently more properties available for tenants, but how long are they staying in these homes?
A study by Direct Line for Business has revealed that the average tenancy length in the UK is now 18 months.
In the capital, the average is longer at one year and nine months. If tenants are sticking around for longer, this is good news for London landlords as it means the chances of encountering void periods is reduced.
That’s it for now. If you’d like more advice on buying or selling a home in London, please get in touch with Atkinson McLeod.
You can get an instant online valuation to see how much your home could be worth on the current market.