Housing and mortgage market sentiment has improved a little over recent weeks. Over the short-term, activity may be boosted by first-time buyers seeking to complete deals before the stamp duty concession ends on 24 March.
For the time being at least, funding conditions have eased as a result of European Central Bank operations, so lessening the need for UK banks to tighten mortgage pricing and terms.As inflationary pressures continue to fall back, the squeeze on household finances should ease progressively and help support stronger economic recovery going into the second half.
The CML estimate that total gross mortgage lending was £10.5 billion in January. Although weaker than in December because of seasonal factors, this would be 10% higher than a year ago and the sixth month in a row of higher year-on-year lending.
December’s approvals data from the Bank of England suggests that the profile of January’s lending continued to be one of resilient house purchase demand alongside a levelling-off in remortgage activity.
Buy-to-let has also put in a more robust performance over recent quarters, slowly recovering its share of total gross lending. While much of this reflects greater remortgage business, landlords also bought more properties during the second half.
Housing and Mortgage News
Monday, 20 February 2012
Thursday, 2 February 2012
Australian Are Buying London Property to Let
Increasing number of Australian buyers are purchasing property in London with a view to renting them out, it is claimed.
According to London property search company, Sourcing Property, they are buying as an investment. The company has acted for six Australian buy to let clients in the past three months alone.
‘The Australian dollar is extremely strong right now, largely due to Australia being so commodity rich and the boom in China’s demand for its commodities. We’re therefore seeing a number of Australia based buyers, mainly who are purchasing for an investment. They view central London property as a relatively safe investment, and they’re getting a saving on it due to the favourable exchange rate,’ said Jo Eccles, director of Sourcing Property.
‘Most of our Australian clients typically buy a one or two bedroom apartment between £400,000 and £800,000. Some of them fly over to the UK for about a week to look at the options, whereas others buy remotely and never physically see what they’ve bought. In this case, we do the search, shortlist and purchase via email and telephone. Because the rental market for good quality one and two bedroom flats is so strong in London, their buy to let investment is usually rented out within a couple of weeks at most,’ she explained.
According to London property search company, Sourcing Property, they are buying as an investment. The company has acted for six Australian buy to let clients in the past three months alone.
‘The Australian dollar is extremely strong right now, largely due to Australia being so commodity rich and the boom in China’s demand for its commodities. We’re therefore seeing a number of Australia based buyers, mainly who are purchasing for an investment. They view central London property as a relatively safe investment, and they’re getting a saving on it due to the favourable exchange rate,’ said Jo Eccles, director of Sourcing Property.
‘Most of our Australian clients typically buy a one or two bedroom apartment between £400,000 and £800,000. Some of them fly over to the UK for about a week to look at the options, whereas others buy remotely and never physically see what they’ve bought. In this case, we do the search, shortlist and purchase via email and telephone. Because the rental market for good quality one and two bedroom flats is so strong in London, their buy to let investment is usually rented out within a couple of weeks at most,’ she explained.
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