UK property market ‘continues slump’

The number of house sales fell by 11,000 last year and continued a three-year slump, according to UK property transaction figures.

House sales dropped to one of the lowest totals recorded, the statistics released by HM Revenue and Customs show, with just 869,000 homes sold last year compared to 880,000 in 2010.

The slowdown in the housing market in recent years was most evident in 2009, when only 848,000 houses were sold. This is about half the number of transactions recorded in a year before the financial crisis began.

The Bank of England recently said it believes lenders will tighten their credit criteria in 2012 and so it will be harder for borrowers to get a mortgage, heightening concerns sales could hit another record low this year.

The first-time buyer sector of the industry has made a slight recovery in recent months after dropping to a three-year low last autumn. However, the recovery may prove temporary with the stamp duty holiday

YBS eases buy-to-let lending criteria

Yorkshire Building Society (YBS) is preparing to introduce more relaxed buy-to-let lending criteria, in a move that could provide a boost to the UK mortgage market.

The range of buy-to-let deals the organisation currently offers to consumers in England and Wales is set to be altered, bringing the minimum property value down from 150,000 to 100,000.

Among the other planned changes, the lender will lower the minimum income a buy-to-let applicant requires to 20,000, down from 35,000.

The minimum age of applicants will also be reduced from 30 to 25.

The building society originally made buy-to-let mortgages available to its customers last summer, via its Accord Mortgages subsidiary. Initially, it targeted people based in London and south-east England.

The news follows an announcement from Platform, the Co-operative Bank’s intermediary lender, that it plans to increase its buy-to-let lending by a third over the course of this year.

Copyright Press Association 2012

UK property data ‘bodes well for 2012′

Increased interest in UK property seen during December suggests a good year ahead, according to an estate agents group.

The average number of house buyers registered per estate agent was recorded as 294 for the month, up by 32 on November’s tally.

However, the National Association of Estate Agents admitted that the increased interest did not turn into increased sales.

The proportion of registrations for first-time buyers was up to 21%, although this was on the back of a three-year low recorded in the autumn. The same period last year recorded first-time buyers comprising 25% of the housing market.

Average sales per branch in December fell to five, from six the previous month.

The association’s Mike Poole said: “Many members were kept busy right up to the Christmas break which bodes well for 2012.

“Sales were being agreed and a limited number of viewings were still booked in right up until the festivities began.”

Copyright Press Association 2012