December 16, 2017

#27 Your round-up of the latest property market commentary

 

Housebuilding

400k new homes could be delivered above shops: A Federation of Master Builders report says that 94% of MPs believe converting empty spaces above shops could reverse the housing shortage in their constituency. Read more.

Property taxation

RICS do not see stamp duty reforms making an impact: The Royal Institute for Chartered Surveyors says that the stamp duty cut for first time buyers has not shown much evidence in countering the sluggish rate of housing transactions. It is important to remember that this was a permanent policy and might not have created the rush that a temporary cut would have. Read more.

Mortgages

New mortgage lending in UK reaches highest level since 2008: New mortgage commitments to borrowers by banks were worth £69.6bn in the three months to the end of September, an increase of 14% on the same period in 2016. Much of this was due to remortgage activity. Read more.

Mortgage costs unmoved by interest rate rise: Data from Moneyfacts suggests that mortgage costs have not changed in the month since the rate rise. Mortgage rates did climb in the months before the hike as lenders began to anticipate the increase. Read more.

Labour signals intent to curb mortgage lending: In a policy paper produced for the Labour leadership team, Shadow Chancellor John McDonnell MP supports proposals to increase capital requirements for banks to divert their lending to “more productive” lending, such as that to SMEs. The proposals would “cause problems”, according to a Monetary Policy Committee member. Read more.