Inflation falls and nominal wages rise causing real wage rise overall
Housing market stakeholders can gain some optimism from a 0.18% month-on-month fall is the Consumer Price Index. At the same time, nominal wages rose by 0.4% month-on-month – to their highest level ever technically.
Overall, this means an overall real wage rise – something for the Government to savour perhaps – until long memories recall that real wages haven't yet risen above the levels of April 2008, i.e. before the credit crunch.
New mortgage approvals down, remortgages up
The direction of play for the latest available month's seasonally adjusted figures for mortgage approvals and remortgage approvals was fairly clear-cut.
Mortgage approvals fell to 64,602 for October, down monthly by 1.9% and yearly by 3.3%. Remortgages rose, to 51,272 in the same month, up monthly by 3.2% and yearly by 5.1%.
As discussed, cash buyers have increased but similarly mortgage buyers have clearly decreased. The fact of remortgages increasing, however, is a fair indication of uncertainty and people staying put, investing in their present properties.
Lifetime ISA outlives the Help to Buy ISA
(so a Government bonus is still available for first time buyers as long as you're under 40)
The Government rolled up its Help to Buy ISA (HTBISA) scheme 30 November, closing the ISA to new applicants. The flawed scheme (click to read about our part in flagging up a number of its shortcomings), which led to the creation of the Lifetime ISA (LISA), at least performed better than the latter, more modern scheme in that you could/can look to achieve the bonus element within a year, something you cannot do with the LISA.
Additionally the HTBISA scheme did not age discriminate unlike the LISA scheme; given that the average age of first time buyers is steadily rising, from late-20s to mid-30s, this is likely to be received with something less than a warm welcome by the older first time buyer.
Our advice – sign up to the Lifetime ISA (LISA) scheme while you still can!
NAEA – First Time Buyer Sales Fall, little other respite
The National Association of Estate Agents led with news that both the supply of and demand for housing, as recorded by its member branches, were both down, however the most recent monthly report led with the news that first time buyer sales had fallen 3% in a month.
Oh…and 85 per cent of properties ended up selling for less than asking price: history repeating itself in this way on a regular-as-clockwork monthly basis…
Andrew Boast, co-founder of SAM Conveyancing, said:
"On the very cusp of the General Election, it's commonly been spoken that this is the Brexit election and certainly a clear result is likely to give a clearer direction of travel...with a 'famous last words' caveat given not only the very real chance, still, of a hung parliament and the possibility, even with a majority government, of the 'best laid plans' unravelling royally."
"We would not wish to give a partisan perspective at this time and directly influence any reader who has yet to vote. Housing is not everyone's obsession, even if it is a desperate issue for so many and the lifeblood of untold sectoral employment types."
"Whatever the result, we wish the victors treat housing with the respect it so sorely needs - and radical, sustainable solutions which marry up solving the problems of people with desperate housing need along with revitalising the market in general for secure employment and even, dare we say it, fair profits to all who seek them."
"So may the best players win - and don't forget the UK's desperate housing needs in the aftermath, Brexit or no Brexit."
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