Political Report

 

Tuesday 26^th April 2011
Halifax – Buying 14% more affordable than renting
The cost associated with buying a home in the UK is typically 14% lower than renting a property, according to new research by Halifax.  The average monthly costs associated with buying a three-bedroom house in the UK stood at £608 in March 2011; 14% (£98) lower than the average monthly rent paid on the same property type of £706.  Three years ago, the average cost of buying was 43% more than the typical rent paid.
The significant fall in the monthly cost associated with buying compared to renting has been driven by the decline in the average mortgage rate since 2008.  The mortgage rate for a new borrower has fallen to an average of 3.59% from 5.82% in March 2008, helping to reduce the average monthly mortgage payment by 39%.
Despite the improvement in the affordability of buying relative to renting, the tightening in lending criteria since 2007 has meant that many potential buyers have not attempted to enter the market.  Nonetheless, market data shows that the average deposit paid as a percentage of the purchase price has been broadly stable since early in 2009 at around 27%, following a marked rise in 2008.
Home Builders Federation launches local election manifesto
The Home Builders Federation's local election manifestooutlines the need for local politicians to shoulder the responsibility of tackling the country's housing crisis and enable the construction of the homes the country needs.
The manifesto underlines the economic benefits of increasing house building to local areas. In total across England house-building could create around 200,000 jobs and £1.2billion of investment from central Government through the New Homes Bonus.
Among the measures requested in the manifesto, HBF is asking councillors to pledge to immediately draw up Local Development Plans to ensure a sufficient supply of viable land for housing.
HBF has also called on councillors to work with home builders to reduce the cost, complexity and uncertainty of regulation that is preventing the building of more homes.
Wednesday 27^th April 2011
British Bankers Association – March 2011 figures for the main high street banks
The latest statistics from the British Bankers Associationshow that the annual growth of the banks' net mortgage lending was 2.3% in March, remaining substantially ahead of the 0.7% for the whole mortgage market in February.
Gross mortgage lending of £7.7billion in March was slightly lower than the recent six month average of £7.9billion and 11% lower than gross lending in March 2010.  Despite gross mortgage lending holding up fairly well recently, this is due to stronger remortgage activity rather than new house purchases.  However, net mortgage lending increased by only £0.8billion in March, due in part to higher repayments.
House purchase approvals were slightly higher than in February but 10% lower than in March 2010.  The average value (£145,400) was 0.5% lower than a year earlier.  Numbers of remortgage approvals in March were 7% lower than the previous month but 1% higher than in March 2010.  Approvals for equity withdrawal continue to be weak and were 19% lower than March 2010.
House of Commons – Debate to take place on social housing in London
A debate on social housing in London, hosted by Jeremy Corbyn MP (Lab, Islington North), will be held in the House of Commons main chamber on Thursday 5 May.
The debate will focus on current proposals for changes to the administration of local housing allowance after several MPs representing London constituencies requested that a debate take place.