Up to a third of millennials 'face renting their entire life'

Up to a third of young people face living in private rented accommodation all their lives, a new report by the Resolution Foundation has found.

The think tank said 40% of "millennials" - those born between 1980 and 1996 - were living in rented housing by the age of 30.

That was twice as many as "generation X" - those born between 1965 and 1980.

The government said it was already putting policies in place to improve the housing market.

Average two-year fixed rate hits 19-month high

The average two-year fixed rate mortgage has increased for the second month in a row, reaching the highest point seen since September 2016, according to new Moneyfacts data.

Average two-year fixed rates have risen from 2.32% in April 2017 to 2.43% today - just one basis point lower than the 2.44% recorded in September 2016.

Moneyfacts says this increase in rates could be due to the withdrawal of products from the 60% LTV sector, which have fallen below 500 for the first time since September 2016, reaching 495 today.

Mortgage approvals remain ‘volatile’ – Bank of England

The mortgage market remained volatile in February, according to the Bank of England, as its latest lending data showed a drop in approvals.
Encouragingly, lending value continued its annual growth of 3.3% last month with total volumes hitting £22.2bn – slightly below January’s figure of £22.8bn.

However, the Bank of England recognised that the current mortgage market was jittery.

New listings up 2.5% year-on-year

There was a 20% increase in sellers listing their properties last month, according to research carried out by online estate agents HouseSimple.com.

This follows a 40% boost in new supply in January.

The latest Property Supply Index from HouseSimple, which looks at the number of new properties listed by estate agents across 100 major UK towns and cities, shows that total new estate agent listings rose from 56,041 in January to 67,182 last month. However, comparing February 2018 with February 2017, the number of new sellers coming onto the market was just 2.5% higher.

House prices increased by 1.8% in February, the lowest rate of annual growth since 2013, as measured by Halifax

Values tumbled by 0.7% on a quarterly basis, but edged up by 0.4% month on month, the lender’s data showed.

House prices are now sitting at an average £224,353.

Low mortgage rates and a lack of supply are helping to underpin the housing market, according to Russell Galley, managing director at Halifax.

He said: “House prices continue to remain broadly flat, as they have since the end of last year.

“Despite the November rise in the Bank of England Base Rate, mortgage rates continue to stay low by historical standards.

First-time buyers fixing for longer

Accord Mortgages has reported that first-time buyers are fixing their mortgage for longer than they did 12 months ago.

The number of applications the lender received for five-year fixes from first-time buyers has more than doubled year-on-year, with 51% of all first-time buyer applications being for longer term deals last month compared to 20% in January 2017.

’Unexpected’ house price growth in January

Average house prices grew by 0.6% last month according to the latest Nationwide house price index, leading to an “unexpected pickup” in annual price growth.

The average property is now worth £211,756, with annual growth increasing from 2.6% in December to 3.2% in January.

Robert Gardner, chief economist at Nationwide, said the rise was “a little surprising”, particularly given mortgage approvals dropped to 61,000 in December, the lowest level in three years and that household finances remain squeezed.

High-LTV mortgage costs fall but choice still ‘patchy’

Mortgage rates at higher LTVs have improved marginally, but product choice continues to remains “patchy” according to new market research.

The differential between the mortgage rates charged at 75 per cent LTV and 95 per cent LTV narrowed slightly towards the year end – but borrowers are still paying around two-thirds more in mortgage costs each year at these higher LTV bands.

Strong FTB activity boosts 14% rise in October lending

The latest data and analysis from UK Finance has shown that mortgage lending was 14% higher in October 2017 than a year earlier - hitting £23.1bn.

According to their findings, strength in remortgage activity amongst homeowners, alongside stronger first-time buyer numbers, are likely to have been the drivers of strong lending activity.

Also revealed was that two-thirds of lending was carried out by High Street Banks, which translated to £15.3 billion.

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