KINGSWAY MORTGAGES: PROPERTY MARKET INFOMAIL:VOL4 APRIL 09

Are we at the bottom of the market?

There is a great deal of talk at the moment as to whether we have hit the bottom of the market and there are many differing opinions on the subject. It is notoriously difficult to predict it accurately, and, by it’s very nature, it will be accompanied by some patchy and often contradictory data.The Bank of England, along with a lot of respected commentators do not expect recovery to take place until the end of this year at the earliest. With unemployment still rising it is easy to see why many believe there will be another 10% fall in 2009.

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Contents:

News
Interest rates
House prices
Mortgages
Rental market
Pensions and investments

Has the economy turned?

One swallow does not make a summer. But we have now had a veritable flight of the passerine birds.. 
... Telegraph

Don't build your hopes up too soon:
Despite talk of a recovery, the recession is likely to stretch into next year
...Guardian

Mortgage approvals signal change:
A rise in mortgage approvals by the major banks for the third month in a row has brought some cheer to the housing market.
...BBC

New HIPS requirements expensive, pointless and damaging:
Home Information Packs are stopping people from putting their property up for sale. Mortgage Introducer

Comment:

The Bank of England’s announcement (9th April 09) that rates will remain at 0.5% is not a surprise to the market and it looks likely to stay that way for a while, as there is still considerable downward pressure on inflation
...Bank of England interest rates

Current: 0.5%

links:

Homebuyers urged to secure fixed-rate mortgages before cost of borrowing turns higher:
Mortgage brokers were last night calling the bottom of the fixed-rate home loan market
....Times

Mortgage lenders cut fixed rates:
A number of lenders have cut their fixed-rate mortgages during the past few days.

 ...Channel 4

Libor rate latest: The three-month sterling Libor rate fell from 1.58% to 1.57%.  
...this is money

Comment:

The press has been full of house price data over the last week or so, and almost all of it contradictory. Nationwide figures show a small rise (0.9%) in the house price index and Halifax says there has been a fall of 1.9%. Is it a blip, or the beginnings of some green shoots? The Nationwide data is currently the only respected indicator that has shown growth this month and so it must be treated with caution.

Feb 09 Nationwide: avge - £153,862  monthly change -2.0%      annual change -16.5%

...Land Registry

Feb 09 London: avge - £298,563   monthly change -1.9%     annual change -15.6%

...Land Registry

links:

Claims house price crash is over are wide of the mark:
...Independent

Surprise growth in property prices: UK property prices rose by 0.9% in March, reversing some of the 1.9% fall recorded the previous month
...your mortgage and remortgage

House price predictions- various experts and their forecasts for 2009
...housepricecrash

Online property valuation
...zoopla

Comment:

Most experts now agree that this is probably the bottom of the interest rate cycle and as lenders are finally loosening their criteria, it is an excellent time to take stock of your current mortgage deal and to consider whether it is time to switch to a better deal.

NOTE: RATES CHANGE DAILY - FOR UP TO DATE INFORMATION PLEASE CONTACT KINGSWAY

Comment:

This month’s data shows signs of a slowdown in the decline in rents for all property types. Whether this continues remains to be seen. The next couple of months will show us if it was a blip or a longer term trend. It is interesting to note that this has coincided, almost exactly, with some similar data for housing sales.

links:

Darling will ask financial sector to fund rented homes: Alistair Darling is expected to unveil radical measures to revive the housebuilding sector by encouraging financial institutions to back the building of thousands of homes to rent.
...Guardian

Energy Performance Certificates: It’s not just houses for sale that need energy certificates, rental properties need them too
....direct.gov.uk

Headline figures for tax allowances for 2009/2010: The new financial year starts on Monday, April 6, so it is well worth checking your tax allowances for 2009/2010
...moneysupermarket

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Holborn
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WC2B 6AA

You can call us on 020 7681 6528
Email: enq@kingswaymortgages.co.uk

www.kingswaymortgages.co.uk

Your home may be repossessed if you do not keep up repayments on your mortgage.

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