Housepresso 17 July 22

Published 17th of July, 2022

50-year mortgages do we really want Generation Debt?

The Government is looking for creative ways to turn Generation Rent into Generation Buy, but do we really want to create Generation Debt?

Whilst the majority of voters are homeowners, it seems that political parties of all colours are keen to guard against house prices falling on their watch. The latest idea from Government is to let homebuyers borrow for longer. Simply put, if you increase the number of mortgage repayments you can make, you can borrow more money and if you allow aspiring first-time buyers to borrow more money you can move more of them from generation rent to generation buy. Simples. Or is it?

If we end up paying our mortgages into our 80s aren't we just renting from banks rather than from landlords?

What is a twindig and how can it help me?

I was recently interviewed by the Guild of Property Professionals CEO Iain McKenzie and Holly Hibbett about what can a twindig do for you?

You can read about the podcast or put your feet up and listen to the podcast by clicking the link below

Will falling homebuyer demand mean falling house prices?

For the second month in a row RICS has noted that home buyer demand is waning. The questions on everybody's lips are therefore:

Is this the first sign that the cost of living crisis is starting to be felt by homebuyers?

Will falling homebuyer demand lead to falling house prices?

Is Credit getting crunched?

The bullet points in the Bank of England's Q2 22 Credit Conditions survey certainly pack a punch. Rising mortgage rates, fewer mortgages and lower demand for those mortgages. The Credit Conditions Survey came hot on the heels of the RICS June UK Residential Housing Market Survey, which also reported waning demand from homebuyers.

The evidence appears to be mounting that the housing market is on the turn. Are we heading towards a stormy summer and awkward autumn for the UK housing market?

Twindig Housing Market Index

In the week that saw mortgage supply shrink and home buyer demand wane, the Twindig Housing Market Index nudged up, very slightly, by 0.3% moving from 71.6 to 71.8. Much like the Conservative Party leadership contest, the jury is still out as to the future direction of travel for the housing market.

There was worrying news this week about mortgage supply and homebuyer demand, but residential investors were unfazed and looked through the current noise to the firm foundations of the UK housing market

Housing Hailey

Subscribe to Market Views