Mortgage Strategy’s Top 10 Stories for the Week:
This week’s top stories highlight significant shifts in the mortgage landscape. From a high-profile resignation in Welsh housing to ambitious plans outlined in the King’s Speech, these developments will undoubtedly shape the industry in the weeks and months ahead. Keep reading for a comprehensive overview of the most impactful stories.
Read more:
Welsh housing minister resigns in protest
Welsh Housing Minister Julie James was one of four cabinet members who resigned today in a bid to oust First Minister Vaughan Gething. Gething, who had been mired in controversy during his four-month tenure, announced his resignation later this morning. James, along with Cabinet Secretary for Housing, Local Government, and Planning, and her colleagues Mick Antoniw, Lesley Griffiths, and Jeremy Miles, stepped down to protest Gething’s leadership.
King’s Speech plans to ‘get Britain building again’
The new government’s intention to reduce planning restrictions was highlighted by King Charles, who stated in his speech that the administration aims to “get Britain building again.” During the state opening of Parliament, Labour introduced over 35 bills and draft bills, including measures to bring rail services into public ownership and establish a national wealth fund to enhance UK investment. Central to these plans are the relaxation of planning rules to facilitate new homes and major infrastructure projects, which are crucial for boosting business spending and foreign investment.
Sticky inflation deals blow to August rate cut hopes
Economists say that sticky inflation has reduced the likelihood of the Bank of England cutting its base rate for the first time in over four years next month. Figures from the Office for National Statistics show that overall inflation remained steady at 2% in the year to June. However, services inflation also stayed unchanged at 5.7%, a level described as persistently high by the more hawkish members of the BoE’s Monetary Policy Committee.
Housebuilding and planning to take centre stage in King’s Speech
Treasury cuts stake in NatWest to below 20%
Sellers cut prices to beat summer slump: Rightmove
Average asking prices fell by 0.4% to £373,493 this month as home sellers aimed to capture buyers’ attention amid summer distractions, according to the latest Rightmove index. The property website noted that this decline was larger than usual for the time of year, with the General Election, Euros, and Olympics likely causing many buyers to be less focused on the housing market. It reported that market activity remained steady throughout the General Election campaign.
UK house prices lift 2.2% to £285k: ONS
UK average house prices increased by 2.2% to £285,000 in the year to May, according to the latest Office of National Statistics (ONS) data. Monthly, house prices rose by 1.3% since April. In May, average house prices across England climbed 2.2% to £302,000, Wales saw a 2.4% rise to £216,000, and Scotland experienced a 2.5% jump to £191,000. In Northern Ireland, average house prices rose 4% to £178,000 during the first three months of the year.
Yorkshire BS and Santander join wave of rate cuts
Yorkshire Building Society cut rates by up to 25 basis points, and Santander trimmed prices by up to 15 basis points in the latest round of reductions. This followed Yorkshire’s second price drop in a fortnight, which included a three-year fix at 80% LTV reduced from 5.29% to 5.04% with no fee and a free standard valuation; a two-year fix at 75% LTV lowered from 4.89% to 4.69% with a £1,495 fee and a free standard valuation; and a five-year fix at 75% LTV cut from 4.59% to 4.49% with a £1,495 fee, free valuation, and legal fees. Accord and TSB also announced reductions for some deals starting the following day.
Co-op and Virgin Money make rate cuts
The Co-operative Bank for Intermediaries relaunched selected mainstream and buy-to-let (BTL) products for new business and retention, while Virgin Money launched seven-day specials and reduced selected rates. The Co-operative Bank cut its two- and five-year fixed rates by up to 0.32% in its residential range for both new business and product switches. Additionally, the lender reduced its BTL rates by up to 0.30% on selected two- and five-year fixes for new business and product switches.
Accord cut rates on several buy-to-let deals, while TSB trimmed prices on some residential and buy-to-let products. Accord reduced its buy-to-let rates by up to 25 basis points, excluding those at 80% LTV, with two-year fixed rates and two-year trackers decreasing by up to 10-15 bps, three-year fixed rates dropping by 25 bps, and five-year fixed rates falling by 20-25 bps. TSB’s rate reductions were up to 20 bps.
The post Mortgage Strategy’s Top 10 Stories: 15 Jul to 19 Jul appeared first on Mortgage Strategy.
