Private Finance: UK Finance Mortgage Lending Trends and ONS House Price Index
Shaun Church, Director at Private Finance, comments on the recent publication of the UK Finance Mortgage Lending Trends and ONS House Price Index.
“2019 is proving to be the year of the first-time buyer, with these homeowners propping up activity in the property market. House price growth has slowed to its lowest point since 2012 and rather than being spooked by these conditions, prospective homeowners are viewing it as a time of opportunity. For many first-time buyers that may have resigned themselves to a long future of renting, slowing house prices, government initiatives and innovations in the mortgage market are all helping to turn Generation Rent into a new generation of homeowners.
“As first-time buyers reap the benefits of favourable government initiatives and tax breaks, it’s a different story for buy to let investors who this week were dealt another blow by the government’s announcement to ban no fault evictions. While the ruling is set to bring greater certainty and stability to the lives of renters, it could further dampen buy to let activity – already down by 7.7% year on year – even further. The flexibility once afforded to landlords when it came to managing their property could be reduced, leaving prospective buy to let investors reconsidering plans to dip their toe in the market. With the right mortgage advice, buy to let can remain a lucrative and worthwhile investment; speaking to an independent mortgage broker can help these prospective landlords consider the available options to make their investment as profitable as possible.”
Kindly shared by Private Finance