In a Nutshell - 27.5.16

In a Nutshell - 27.5.16

Interest Rates Could Go Down, Not Up

The expectation for the last two years has been for interest rates to shift upwards as the economy recovered.

However, the fears of a new downturn - if not on the scale of the 2007 recession - means that the possible next move for the Bank of England could be to actually reduce interest rates in the hope of minimising economic impact.

Bank Governor Mark Carney is claimed to have asked lenders to 'prepare' for a possible cut rate.

And, despite optimism in the latter half of 2015, it now looks as though investors do not expect interest rates to reach 0.75pc until September 2019.

Fears centre mostly on the EU referendum, which has limited the growth of the UK economy in recent months, and the concern is that after the referendum, traction will be slow to pick up.

As of now, the risk is low. The Bank of England is expected to maintain the 0.5pc interest rate for now, though at least one member of the Monetary Policy Committee is in favour of a rate cut.

Source: This is Money

London Mortgage Lending up 41pc

London Mortgage Lending up 41pc

The Council of Mortgage Lenders has reported a 41pc increase in lending from Quarter 1 in 2015 against Quarter 1 2016, at a value of £7.1bn.

Lending was also up quarter-on-quarter, rising 6pc from Q4 2015 to Q1 2016.

New mortgages usually indicate first-time buyer activity but the jump was understandably caused by the buy-to-let rush in the months up to 1st April.

The total household income of borrowers in London was £62,508 against a UK average of £40,000.

Source: City AM

London's Barren Properties

£12bn-worth of properties in London isn't being lived in.

Almost 21,000 properties have lain empty for six months.

Thus the capital's experience of the housing crisis is a bizarre one, where there is plenty of empty space, but nobody wealthy enough to live in it.

These are the findings by Property Partner, who conducted research that also shows 1,318 empty properties in Newham . the most in any London borough . and a £1.7bn value of empty properties in Kensington and Chelsea (1,289 properties).

Wandsworth, however, has seen a decrease in its number of empty houses . a 93pc drop from 513 properties to 202.

Haringey and Lewisham have increased their number of empty properties in the last six months.

Source: City AM