More On The ‘Double-Dip’ and New Mortage Deals
Predictions of a double-dip continue with data from Acadametrics – the only index which bases its findings on actual property price transactions in England and Wales rather than asking prices or valuations – showing that house prices fell for the third month in a row in May. The number of homes sold in May also fell, down by 18% from April, the lowest in 15 years. Acadametrics chairman Dr Peter Williams asks “The question now is will that decline continue through to the end of the year and beyond?” and says “There is much to suggest that it will, although in reality there is a spectrum of views from analysts ranging from a price fall of 7% to a 3% rise over the next six months. Clearly, the emergency budget on 22 June will offer some clarity, not least on CGT but also on other tax rises and expenditure cuts.”
On the mortgage front there is a bit of movement. Woolwich and builder Bovis Homes have together launched a new mortgage offering up to 90% on a new-build Bovis flat or house. Aimed at first-time buyers the mortgage has a two-year fixed rate of 4.99% with a £999 fee. And Yorkshire building society has today launched a 10-year fixed rate mortgage at 4.99%. The mortgage has a £995 fee and can be use for purchasing a property or remortgaging. Long-term fixed rate mortgages aren’t as popular as they used to be – in June 2007, at the market height, there were more than 80 long-term fixed rate mortgages available, now there are less than ten. Short-term fixed rate mortgages have proved more popular (the cheapest you can get is a two year rate at 2.95% from the Co-op) but the idea is that with the possibility of interests rates going up people may find more comfort in a long-term fixed rate.
And another Labour initiative to hit the dust at the feet of Cameron’s government is proposals for landlord regulation, which included a national register of landlords and compulsory written tenancy agreements. Housing minister Grant Shapps rejected the proposal saying: “…I am satisfied that the current system strikes the right balance between the rights and responsibilities of tenants and landlords,” and “So today I make a promise to good landlords across the country: the government has no plans to create any burdensome red tape and bureaucracy, so you are able to continue providing a service to your tenants.”
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