Manchester Housing News - Part 1

A rift has emerged among town hall chiefs and new mayor Andy Burnham over how quickly to plough ahead with the Greater Manchester Spatial Framework (GMSF)

Greater Manchester’s controversial 20-year development masterplan could be delayed by well over a year so council bosses can go back to the drawing board.

A rift has emerged among town hall chiefs and new mayor Andy Burnham over how quickly to plough ahead with the Greater Manchester Spatial Framework (GMSF).

Officials are eyeing up a major rewrite fallowing of Mr Burnham’s manifesto pledges and public concern over green belt.

One option now under discussion is to aim for it to come into force in Spring 2020, considerably later than the December 2018 date originally intended.

But some council bosses are opposed to the delay, believing it will harm investor confidence in the region.

The GMSF - the region’s long term development blueprint - caused a storm when it was unveiled in draft form last year due to the dozens of greenfield and green belt sites earmarked for new housing and businesses.

Council chiefs now believe it was not clear enough in its vision, while also accepting some green sites will need to be removed due to public opposition.

(source: http://www.manchestereveningnews.co.uk/news/greater-manchester-news/greater-manchesters-controversial-housing-masterplan-13288112) A private meeting of combined authority leaders last week saw three new potential timetables put forward for the plan so it can be rewritten. One option would involve consulting on a new draft this autumn, a couple of months later than originally planned, before submitting to government a year later in the hope of adopting it in September 2019.

New Housing Development - Ramsbottom

Attention all people looking for a home in a really good area - there's a new housing development being built in Stubbins, Ramsbottom.

The developer is Eccleston Homes and details of the development are up at http://www.ecclestonhomes.co.uk/developments/chatterton-place/.

The development, off of Bolton Road North, Ramsbottom has the BL0 0NB postcode which puts it right in the middle of one of the most affluent and up and coming areas of Lancashire. Situated on the Lancashire / Greater Manchester boarder it has excellent motorway links, local shops and good schools.

As yet I have no details of how much the housing is going to cost but if you bookmark the above site and check back often you should soon learn more details.

If you are interested in buying one of these houses or a similar one in the Ramsbottom / Stubbins area you should also consider the areas of Holcombe, Helmshore and Edenfield. These are 3 villages with quaint charm that have a lot going for them.

If you need a mortgage, then get in touch, there are many excellent mortgage brokers in Manchester who will be able to help you.

Refinancing your home (for older people)

I have been approached by a pair of their early 60s, both in complete-time employment, whose hobby-simplest residential mortgage changed into due to expire, who wish to refinance

Because of their age, their contemporary lender was unable to offer a new facility and had requested that the closing balance be repaid.

Not able to make the total compensation and no longer wanting to down-length, the couple asked us to assist them remortgage and had asked that they stay on interest-best terms, retaining their monthly payments low.

With blended gross income of less than £75k pa, it might now not be honest to acquire interest-most effective terms as much as the extent of borrowing that the clients required. furthermore, each customers are already aged 60 or over, which again limits the availability of hobby-best finance.

We took the case to a lender that offers interest-most effective phrases as much as age 70, and fast acquired an agreement in principle. The valuation, but, came back decrease than expected, which extended the requested LTV to sixty four%. The lender applies a cap to hobby-only borrowing at 60% LTV, so the loan had to be restructured to part interest and part repayment.

Regardless of this, the phrases supplied nonetheless resulted in plenty decrease month-to-month repayments than their existing facility. The couple had been extra than satisfied to continue underneath the new phrases.


Wigan and Bury Mortgage Brokers, Manchester and Lancashire

Here's a question that recently came into us. The person is looking for mortgage brokers who can secure them a deal in either the Wigan or Bury areas of Greater Manchester / Lancashire.

I'm looking to get a mortgage and wonder if you can help me? I'm wanting to move into the Manchester area - perhaps around Bury or Wigan. I'm a first time buyer and am looking for a mortgage of about £120,000. I have a deposit of £45,000 and wonder if this will be enough?

I've tried some high street lenders such as HSBC and RBS but there's a ridiculous waiting list of several months. I've seen the house I'd like to buy and I need a decision on whether I can get a mortgage or not - I can't wait for HSBC or RBS - they take too long. Hopefully you can help me find a mortgage? I was recommended to you by a friend who also lives in Manchester.

I'd probably prefer to live in the Wigan area rather than Bury and have found some 3 bedroom houses in the Haigh, Aspull and Tyldesley areas. The prices are above £150 so it's a bit of a stretch but I reckon I should be able to find myself a mortgage broker who can sort me out with a good deal.

I've been reading your blog and noticed that in one post you mentioned Manchester Mortgages. I found a general Manchester portal of mortgage brokers too at http://www.manchester.com/money/mortgage_brokers_advisors.php so I will try the phone numbers on there and look at the web site.

In the meantime if you can get back to me with what criteria you need to find me a mortgage in the Wigan or Bury areas that would be great!

Fixed Price Mortgages (loans)

The pricing of fixed mortgage quotes relies upon on several up-to-date, but broadly speaking whether or not banks can get their palms on cheap cash updated lend out. They usually get it from savers or by means of borrowing from different banks at the money markets, shopping for cash at a positive fee – the "swap" rate – for a positive period.

Those change rates react up-to-date expectations of future hobby quotes and inflation, which affect the rate of mortgages.

Change prices dropped sharply ultimate January amid worldwide financial turbulence, and once more following the Brexit vote, however rose once more at the up to date of 2016.

Loan prices are expected up-to-date upward push in reaction, despite the fact that the extent of competition between credit and a few market stagnation may postpone reactions.

Movement taken with the aid of the bank of britain could have an impact. The financial institution has made it clean within the beyond that if runaway residence charges are a risk and extremely-low mortgage quotes are a reason, the latter will be policed away – by way of heaping new costs or capital necessities at the banks.

Up-to-date up-to-date then skip at the expanded fee of investment up-to-date mortgage up-to-date by way of increasing their rates.

What's the distinction among constant and variable quotes? In case you take out a set-fee mortgage the hobby price you pay might be constant for an initial duration, regardless of charge changes made by way of the financial institution of Britain or actions within the markets.

Constant charges are typically for two, three, five and now and again 10 years, with longer phrases costing extra. as soon as the fixed length ends, borrowers are pushed directly to the lender's "well known variable fee", which may be plenty better.

Variable loan fees can range at some point of the mortgage time period, that means up-to-date will no longer have the security of knowing how a whole lot their repayments might be each month.

However, if the British economic system dips, hobby charges will likely decrease, making the payments significantly less expensive. additionally, because the mortgage comes with the uncertainty of interest costs either rising or falling within the destiny, the preliminary rate is often lots decrease than with constant mortgages.

The most inexpensive fixed deals it is now not all approximately charge. up to daters like more costs, inclusive of association expenses.

We've calculated the full fee of some of the quality deals, up-to-date on a £350,000 domestic with a loan of 25 years.

Two situations are included: a client with a 40pc deposit (£a hundred and forty,000) and a client with a 10pc deposit (£35,000). the primary is supposed up-to-date someone remortgaging or shifting home, and the second one updated a primary-time up to date.

Levenshulme and West Didsbury Mortgages

Levenshulme and West Didsbury and up and coming areas of Manchester where the demand for property is high and mortgage approvals are at an all time high. Manchester mortgage brokers like Manchester Mortgages are getting mortgage approvals for many types of customer weekly. Levenshulme is set 4 miles south of the metropolis centre on Stockport street, a main route to the south of Manchester.

Residing in Levenshulme Levenshulme is a vibrant vicinity with a good blend of housing and numerous groups.

There is an amazing variety of neighborhood stores, eating places, antiques stores and offerings alongside busy Stockport street, and a huge Asda grocery store in close by Longsight.

Public shipping is superb, with regular buses along Stockport street to the colourful city centre, with its employment, leisure and amusement centers. There are ordinary trains to Manchester and Stockport from Levenshulme station.

Cringle Fields and Crowcroft park at either cease of the place provide inexperienced space and lesiure centers. houses to rent in Levenshulme

There are round 1,100 houses rented out via not-for-profit landlords like housing institutions and housing trusts. Getting a mortgage is easier if you use a broker.

West Didsbury
West Didsbury is ready 4 miles south of the town centre, on the east facet of Princess street, a prime path into the metropolis from the M56 and the toll road network. living in West Didsbury

It's just over a mile to the wide type of shops, banks, post places of work, bars and restaurants in Chorlton or Didsbury.Mortgage arrangers Manchester Mortgages have an office here.

There are extra neighborhood offerings in Northenden a pleasing mile walk away across one of the neighborhood golfing courses.

There are very common buses alongside Barlow Moor road to Didsbury and Chorlton, the town centre and the university, and masses of buses along Princess street to the city centre and to Wythenshawe and the airport. houses to lease in West Didsbury

There are round 180 homes rented out via no longer-for-earnings landlords like housing institutions and housing trusts.

'Buy for Uni' mortgage

Many students come to the end of their degrees wondering when they are going to be able to afford a deposit on a property in light of the student debt they will have accumulated. But some students leave university already a home owner/ landlord. Sounds improbable? Two lenders (The Loughborough Building Society and Bath Building Society) are offering a 'buy for uni' mortgage - the catch being that close relatives provide security.

Under the terms of the deal, students who are over 18 and are in higher education in England and Wales can get a loan for up to £300,000. The property must be within 10 miles of where they study and must be guaranteed by parents, step-parents or grandparents.

Lenders argue that this product enables young people to get a foothold on the property ladder, allowing the student to become a landlord by renting out rooms to fellow students. The rental income needs ideally to cover more than the repayments, to account for rises in interest rates or periods of low occupancy. Alternatively the guarantor is obliged to cover any periods of suboptimal renting.

Although this is a new product from the Loughborough Building Society, the deal has been available in Bath since 2008, on the basis of a loan to value ratio of 75% or less. The students' relatives are required to provide at least a 25% charge on the property. But does it work in practice? According to Bath Building Society's chief executive, the rental income derived from fellow students usually pays the majority of the mortgage repayments; however, the model works better in some towns than in others.

Some student representatives are advising a cautious approach for students considering this option. Signing up for a mortgage at the age of 18 may place a lot of responsibility on young shoulders, and hidden costs such as surveyors and legal costs may potentially catch people unawares.

These deals are not for everyone, and lenders argue that they carefully assess the circumstances of the student and the guarantors before entering into a contract. Interest rates are typically higher than equivalent conventional mortgages and it is important for potential borrowers to be aware of the risks. And parents too need to be aware of risks to their own property. For instance, if there is a rental shortfall the bank of mum and dad is going to have to pay the difference, and if the property were to end up being repossessed, the lender could claim any shortfall from the parents' equity. In addition, borrowing against their own home in future could be affected. On the plus side, however, the property is in the child's name, and so there would be no additional property stamp duty surcharge, presuming parents own their own home.

 

Housing in the Fallowfield district of Manchester now almost all occupied by students

 


London's Housing Crisis Continues...

You'd have to live under a rock not to know that house prices in London are incredibly expensive... and, for most people, a rock might be all they could afford in the capital.

A recent study by the National Housing Federation has found that a 20% deposit on an average London property has increased to £113,000, putting stepping on the property ladder in the capital out of reach for many. And renting isn't cheap either, with an average monthly rent over 60% of a typical salary. Factor in living expenses and there is little left over to start saving towards a deposit. It's no wonder perhaps, that fewer people than before expect to own their own home in the future.

Of course, some areas in London are more affordable than others - the average price in Barking & Dagenham, for instance, is around ten times the average wage, whereas properties in Kensington & Chelsea top the list of the least affordable, with prices being nearly 35 times the average local wage. Other expensive areas are Westminster, Camden, Hammersmith and Fulham and the City of London, and cheaper areas are Bexley, Havering, Newham and Croydon.

So how are people managing? More and more people in London are turning to the welfare system to make ends meet, with around one third of all housing benefit claimants being working people. This proportion is higher than any other area in England, which highlights the difficulties in the capital.

The housing crisis is experienced more acutely in London than any other area, and action is needed to address the issue of affordable housing.  Housing associations have been the recipients of more funding and flexibility from the Government, and the National Housing Federation is keen to work closely with the mayor to deliver affordable homes in the capital.

 


Report indicates falling numbers of house movers

Numbers of home movers have fallen for the first time since 2011, according to a report by Lloyds Bank. The figures suggest that around 13,000 fewer people moved home in 2016 than the previous year. So what factors are causing the numbers to drop?

High stamp duty and a shortage of supply have been blamed for the fall in numbers. Fewer second-time buyers find themselves able to afford a larger home, while fewer older people seem to be downsizing. Stamp duty increases for the more expensive homes may be causing sluggishness in the lower end of the market as wealthy homeowners are not moving and freeing up properties for those climbing the property ladder.

Leading politicians have called for a review of stamp duty in March's budget, but given that over £2.5 billion was generated by the purchase of expensive properties, Chancellor Philip Hammond may be reluctant to reverse the increase in the tax brought in by Chancellor George Osbourne in 2014.

Stamp duty is not just an expense for the wealthy, however. As house prices rise, stamp duty has become increasingly expensive for all buyers, who now have to factor in an average cost of £11,000 to cover stamp duty, estate agents' fees and legal fees.

Even though affordability for first-time buyers is in a slump, Lloyd's figures suggest that first time buyer numbers have increased. The slowing down in the market then is more as a result of homeowners not moving up the ladder to the more expensive properties due to cost, and, as the bank suggest, a lack of suitable properties to purchase combined with concerns about the impact of Brexit on the housing market.

More stringent affordability rules is also constraining the market as some homeowners may be unable to move their loan to a new property.


Is the North-South divide narrowing? House price trends in the UK

According to a recent report by Hometrack, growth in house prices in our regional cities is continuing to outstrip that of London, with Bristol and Manchester seeing the largest increases.

Manchester is now vying for top spot with a growth of 8.9% compared to Bristol's 9.6%. For Manchester, the rate price inflation is at its highest since July 2005. But why is London falling behind in the rankings?

Hometrack suggests that demand is falling in London because of high levels of unaffordability. With an average house price in excess of £580,000, about 14 times the average salary, many citizens struggle to obtain a mortgage, and house price growth in the capital is projected to slow further over the year. Other cities outranking London in the list of house price growth include Oxford, Portsmouth, Southampton and Birmingham.

However, to suggest that this means the traditional North-South divide is lessening is inaccurate. House prices in Scotland, for instance, showed slower growth than London, which at 7.3%, is still considerably higher than Glasgow (4.9%), Edinburgh (3.7%) and Aberdeen (-3.2%).

So while the divide isn't disappearing, it is true that in Manchester, and to a lesser extent Birmingham (7.5% growth), market conditions are stronger than in the capital. But what does this mean for Mancunians? It's a double-edged sword. The supply of homes is just keeping pace with the demand, which is maintaining the upward pressure on prices. That's good news for homeowners, many of whom will have increasing equity in their homes, but not so good for first time buyers or those wishing to move up the property ladder, who will find their finances squeezed.

The promised Housing White Paper this month will demonstrate whether and how the Government will build on its pledge to provide a stock of affordable homes.