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5 Commercial Finance Myths You Need To Be Wary Of

Is your take on commercial finance based on a myth? Read on to find out!

The UK financial market is among the largest in the world. It’s been growing every year, giving millions of people an opportunity to build enough wealth to fund their dreams. With big money, however, come big myths.

At Commercial Finance Network, we regularly come across borrowers who are genuinely worried and apprehensive, all thanks to these distorted truth and outright lies. So, we’ve decided to run a series of blogs that will, we hope, help dispel these myths.

This is the first entry in that series. You may want to visit and bookmark our blog for when you want to return. You can also sign up for our incredibly useful newsletter that will keep you posted about the latest news, updates and articles from the world of commercial finance.

Myth #1. Private/Alternative Lenders Are Always “Predatory”.

This is probably the most common myth of them all. Most entrepreneurs and young businesses have little to no experience of making commercial finance work in their favour, and, as a result, they end up relying heavily – almost too heavily for their own good – on whatever finance options they come across first. These, as you can guess, usually happen to be big banks and high-street lenders.

So, if and when banks fail to give them the deal they want, they either shelve their projects, or turn to alternative lenders as the last resort, but not without a great deal of apprehension.

This is something that will take years to change but change it must!

If you can keep your options open, you can always find alternative lenders who are willing to offer you quotes that are far cheaper, more flexible and faster than the ones you’d receive otherwise. While it’s true that there are many lenders out there who run predatory practices, it’s important to know that when you work with reputed brokers like Commercial Finance Network, you shield yourself from such threats.

Myth #2. I’ll Just Exhaust My Personal Credit Cards First. That’ll Be Cheaper.

 When you’re looking to finance business expenses – they can range from buying a property to funding refurbishments or exiting an active project – it’s very tempting to use the most accessible options first up.

Consequently, many business owners, even before they approach us, have already used up all their personal credit. This includes exhausting credit cards (often, including their partner’s) and stretching personal savings thin. This approach may even work in certain cases, especially when you are confident of establishing a firm source of revenue/investment soon.

But when you aren’t, it may just be better (and often cheaper) to turn to commercial finance for business needs.

Personal loans, more often than not, are small, short-termed and unsecured loans. They can take care of unexpected, emergency expenses, but that’s about it. They have, time and again, proven to be incompatible with business needs, despite an apparent rise in their popularity.

So, in summary, don’t stay under the impression that a personal loan can be a good alternative to commercial finance.

Myth #3. Commercial Finance Is Not For Those Who Have Bad Credit.  

A misconception, more than a myth. This false notion cuts across all commercial finance products, holding back many businesses that shouldn’t even be worrying about bad credit to start with.

It’s true that lenders do and will check your credit file. It’s also true that much will depend on your credit history. What’s not true, however, is that not everything depends on your credit file.

Many lenders specialise in working with individuals and businesses with bad credit. Such products may be a touch more expensive and may require additional security, but they can certainly help in the hour of need.

At Commercial Finance Network, we have a panel of specialist lenders who offer adverse credit mortgages to applicants across the UK.

Myth #4: We Can’t Afford To Wait This Long.

Everybody wants things to move fast, and that’s a perfectly reasonable expectation.

It’s undeniable that commercial finance used to move at a snail’s pace a few years ago. Thankfully, things have changed for the better (we, at Commercial Finance Network, have been at the forefront of this change).

When you work with an experienced broker, you can make things move really fast. For example, every commercial finance product that we broker is designed to take shape at an industry-leading speed. In essence, now is the right time to do away with the misconception that commercial finance is slow and sluggish.

Myth #5: It All Seems So Complicated!

It probably does, and we don’t blame you for it, at all.

Brokers and lenders have a track record of complicating commercial finance products to such an extent that they appear puzzling – especially to first-time borrowers. There are far too many numbers to process, making the whole process a winding dread.

But we’ve got good news. There are experts out there willing to understand your requirements and make these products work for you. Thankfully, we’ve got the best among these experts on our board – and they’re here to help you. When you apply for commercial finance using our portal, we make sure that you are always in charge, and every little detail is explained to you. There’s no room for confusion and there’s no scope for ambiguity. You get what you see.

In Conclusion: Explore Your Commercial Finance Options Bravely, They’re Always Worth It.

Commercial finance is indispensable. Once your business grows past a certain stage, using your personal savings just doesn’t cut it. You’ll need more robust, customised and cheaper financing options that will also be scalable.

Don’t be bogged down by the intricacies of commercial finance. Explore your options freely and make the most of your creditworthiness to fuel the growth of your business. To know more about how our commercial finance services can help you, please contact us here. You can also call us on 03303 112 646 to request a prompt call back.

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Bridging Loans – Why You Need Them, When You Need Them & How To Apply For One

When utilised properly, bridging loans are among the most effective commercial finance products. We try to answer a few burning questions about such loans in this post.

If you operate in the property market, you already know that time is of utmost importance. A good deal can become unreasonably expensive if you can’t close it in time. Worse yet, someone else is almost always ready to swoop in and steal the deal from you.

In short, if you can’t move at a rapid pace, you’ll only make things difficult for you.

But then again, it’s never easy to get property deals worth hundreds of thousands of pounds through without having some time to think, consult with people and arrange for funds. The last part – that of raising money – eventually turns out to be the bottleneck.

Breaking that bottleneck so that investors, developers, landlords and regular buyers can ‘realise’ their dream deals is the prime focus of all bridging finance products.

Before We Start – A Quick Look At What Bridging Finance Really Means

There are quite a few myths that regularly float around bridging loans, especially amongst first-time borrowers. For now, we will just try to clear the air by defining what bridging loans are.

What Are Bridging Loans?

Bridging loans are short-term loans taken (usually) by commercial entities to help ‘bridge’ the gap between required funding and available (or soon to be available) funding.

It’s common for people in the property market to use the terms ‘bridging loans’ and ‘short-term loans’ interchangeably – but that’s not always correct. An easier way to differentiate between the two is this: all bridging loans are short-term loans, but not all short-term loans are bridging loans.

Example

Let’s say you are a property developer. You already have an active project that’s nearing completion. You expect it to complete within next 10 months. For now, you’ve come across a good buy to let opportunity that you don’t want to miss out on. The only problem is, the seller wants you to make an initial deposit of £200,000. You already have active development finance on your project, so you know it’ll be tough to get a buy to let loan.

In this case, a bridging loan can be the most ideal way out. You can, for instance, take a six-month bridging loan with a fixed interest rate. This loan will cover the initial deposit for your new project – and can be paid back once the active project gets completed (i.e. your exit strategy will hinge on the competition of your active project).

Here’s how the numbers would typically work out for such a case:

  • The market value of the property to be used as security: £400,000
  • Maximum LTV offered by the lender: 80%
  • Maximum amount that can be borrowed: £320,000
  • Actual amount borrowed: £250,000
  • Initial deposit to be made: £50,000
  • Balance bridging loan amount: £200,000
  • Applicable interest rate:5% per month
  • Loan term: 12 months
  • Payable interest: £1,250 per month

Why Are Bridging Loans Used? Who Are They Aimed At?

There’s really no limit to the number of reasons people and businesses use bridging loans for.

Even though, at Commercial Finance Network, our bridging finance services focus on the property market, it’s important to note that bridging loans are used across all industries and sectors. They may take different names and forms, but the idea remains the same.

Bridging loans are aimed at people who are looking to enter the property market via any of the regular channels (buy to let, convert, develop or invest). Essentially, if you are a property developer, landlord or investor, you can and should use bridging loans as a viable financing option.

Here’s Why Bridging Loans Are Popular

  • Easy To Get: Bridging loans are easier to get if you have your business and personal credit history in good health. Even when you don’t, lenders on our panel might be interested in your application. You can get a loan for an amount as high as £200,000.
  • Fast: There’s no need to waste time. When you work with an industry-leading whole of market broker like Commercial Finance Network, you get a decision on your bridging loan application within 24 hours. More importantly, we make sure that the lender releases the funds to you swiftly.
  • Flexible: Bridging finance is incredibly flexible. It’s just a short-term loan, but can well be extended up to 12 months, should you feel the need to. Moreover, most lenders are willing to offer interest-only repayments (subject to the viability of your exit strategy).
  • Cheap: Bridging loans we broker come with lower-than-market interest rates. Some of our lenders offer interest rates as low as 4% per month. It should, however, be noted that bridging finance is more expensive than long-term mortgages.

When Should You Consider Applying For A Bridging Loan?

Bridging loans are a specialty commercial finance product. Therefore, to make the most of what they have to offer, you need to know and understand when they are a good option.

Here are some common scenarios that are tailor-made for bridging loans:

Buy To Let Projects

Buy to let projects are well served by bridging loans – especially when your existent credit line/loan is fully invested in another active project.

Residential/Commercial/Mixed Use Development

Development projects, more often than not, end up stretching your budget too thin. There are a million fronts to fight on, and it’s not at all uncommon for developers to run out of money. Such situations – before the project starts or is already in progress – can be taken care of using a customised bridging loan.

Conversions/Refurbishment Projects

If you want to undertake conversion/refurbishment projects, you can take out a bridging loan to cover the costs.

Important: Know What Your Exit Strategy Is!

Bridging loans are incredibly useful when your back is against the wall. That, however, doesn’t mean that they can replace conventional, long-term financing options.

A bridging loan is best viewed as a temporary arrangement – one that saves the day.

Therefore, before you get into a bridging loan contract, it’s important for you to know how you’re going to exit. Common exit strategies include:

  1. Selling the property (being used as security)
  2. Getting a more robust, long-term development finance package or buy to let loan
  3. Placing a mortgage on your new property

Bridging Loans Timeline

A traditional mortgage would take weeks to ‘realise’. Bridging loans, thankfully, are faster.

When you work with us, we make sure that you get a decision from lenders within 24 hours. Once you decide to go ahead with a particular quote, the lender will proceed with the valuation of your property and assessment of your credit file. Everything said and done, a commercial bridging loan can go through within a matter of days.

Finally, How To Apply For A Bridging Loan?

If you don’t want to involve a broker in the process, you can approach lenders directly. This, however, is an approach fraught with risks. When you aren’t familiar with the lender’s approval criteria, you always have a very high chance of getting multiple applications turned down. This puts a dent in your credit score, making it even more difficult for you to get approved.

Such hassle can be avoided with ease, and for a very reasonable cost by working with a leading whole of market broker like Commercial Finance Network. We have on board a panel of UK-wide specialist lenders who are known to offer low interest rates and high flexibility of repayment.

Applying for a bridging loan is easy – just complete this form or call us on 03303 112 646 to get started.

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Unprecedented fall in buy-to-let fixed rates

Fixed rates in the buy-to-let mortgage space have fallen across the board, according to online mortgage broker, Property Master.

Angus Stewart, Property Master’s chief executive, described this as “unprecedented”, and follows on from recent remarks by the Governor of the Bank of England that the UK leaving the European Union without reaching some sort of trade agreement may well require some sort of economic stimulus such as a cut in rates to weather the shock of no deal.

He commented: “We have been tracking buy-to-let mortgage interest rates in this way for 18 months and we have never seen before a fall across the board in this way. It is quite unprecedented.

“Last month we were seeing a drift upwards in the cost of buy-to-let fixed rate mortgages but it may be that the market is now expecting rates generally to fall rather than rise.”

“It is likely that lower rates are also being fuelled by the continuing increase in the number of buy-to-let mortgage products. Whilst it is true some lenders have exited the market others are boosting their range and competing hard for new business.

“As landlords continue to be pressed on all sides by rising regulatory costs such as the new Tenant Fees Act and falling tax reliefs today’s news of a lowering of mortgage costs will be very much welcomed.”

Property Master’s July 2019 Mortgage Tracker shows the biggest fall in monthly cost was for five-year fixed rate buy-to-let mortgage offers for 75% of the value of a property. The monthly cost fell by £36 per month June to July.

Five-year fixed rates for 65% loan-to-value fell month on month by £6. Five-year fixed rates buy-to-let mortgage offers for 50% of the value of a property fell by just £3 per month.

Two-year fixed rate buy-to-let mortgages for 50% and 65% of the value of a property fell by £5 each. Two-year fixed rate buy-to-let mortgages for 75% of the value of a property fell by £8 per month.

The Property Master Mortgage Tracker follows a range of buy-to-let mortgages for an interest-only loan of £150,000. Deals from 18 of some of the biggest lenders in the buy-to-let market including Barclays, BM Solutions, RBS, The Mortgage Works, Godiva and Precise were tracked. Figures for this month’s Mortgage Tracker were calculated on deals available on July 1, 2019.

Property Master was launched almost two years ago and aims to shake up the buy-to-let mortgage market currently served by around 12,000 mortgage brokers. It has already attracted financial backing from a broad range of private investors including a minority stake being taken by LSL Property Services, whose estate and letting agency brands include Your Move and Reeds Rains.

Property Master has automated what was a manual, complex process to provide landlords with a free easy to use mortgage search tool which provides a mortgage quote that is pre-screened against each lender’s specific and changing criteria.

By Joanne Atkin

Source: Mortgage Finance Gazette

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Bank of England could cut interest rates to near zero in no-deal Brexit

Interest rates could be cut to almost zero if Britain leaves the European Union without a deal, a top official at the Bank of England said today.

Gertjan Vlieghe, a member of the Bank’s rate-setting monetary policy committee (MPC), told an audience in London today that Threadneedle Street might have to slash rates to nearly zero in the event of a no-deal Brexit.

The comments mark one of the strongest indications yet given from an MPC member of the potential direction the BoE could take if Britain and the EU failed to reach an agreement by the deadline of 31 October.

Boris Johnson, the bookies’ favourite to succeed Theresa May as the next Prime Minister, has pledged to take Britain out of the EU with or without a deal by the end of October, raising expectations of a potential no-deal exit.

In a speech given at Thomson Reuters, Vlieghe said: “On balance I think it is more likely that I would move to cut Bank Rate towards the effective lower bound of close to zero per cent in the event of a no-deal scenario.”

Sterling remained roughly flat at 1.252 against the dollar.

Vlieghe, who was once a bond strategist at Deutsche Bank, said it was “highly uncertain when I would want to reverse these interest rate cuts”, as it would depend on the rate of recovery from a potential no-deal shock to the markets.

In June the rate-setting committee at the Bank voted unanimously to hold interest rates.

It had raised rates to 0.75 per cent last August from a low of 0.25 per cent.

Yesterday governor Mark Carney refused to be drawn on whether he has his eyes set on the top job at the International Monetary Fund (IMF) after he leaves the Bank in January.

Carney said there were “a few orderly transitions” he had to look after at Threadneedle Street before he focused on anything else.

By Sebastian McCarthy

Source: City AM

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UK house prices are stuck in the doldrums

UK house prices are set to tread water while incomes rise, making property more affordable, says Merryn Somerset Webb.

The numbers aren’t looking good for residential property investors. House price growth in the US fell to a mere 1% at the beginning of this year, according to the latest report from the Dallas Federal Reserve. Look at global data across the 18 largest economies in the world and things don’t look much more encouraging. This could be the year in which we see “global growth dip to its lowest pace in a decade”. Investment is slowing fast, says Oxford Economics.

The UK is no outlier here. The Nationwide index and the Rightmove Asking Prices index show prices and asking prices respectively to be all but flat. The Halifax House Price index shows a better annual number but suggests prices fell mildly in June. You can see the same trend in Hometrack data, which suggests that the falling prices we have seen in London are beginning to spread: over a third of homes are now in areas with annual price falls (the higher value the market the more likely this is), although the absolute levels of falls is small. So what next? Most analysts expect the market to tread water from here (at best) – although if a new PM were to pull a Brexit deal from the hat we could of course see a little London bounce.

A flat market…
This is probably correct. There is still some support for prices. Housing starts are falling slightly (so the supply of housing is not rising much). Interest rates are low and will go lower if Brexit goes horribly wrong. The banks’ wholesale funding costs have also edged down, and that should soon feed into mortgage rates. At the same time wages have jumped (year-on-year growth excluding bonuses hit an 11-year high in April) and household disposable incomes are also on the up.

That makes houses – even at today’s silly prices – seem more affordable. Prices, says Nationwide, are likely to be at least supported by “healthy labour market conditions and low borrowing costs.” That said, there isn’t much to push prices up either. They are still high relative to incomes. The tax and regulatory hit to buy-to-let is discouraging buyers in that market. An unwelcome (to big property owners, at least) overhaul of property taxation may be on the way. And the Help to Buy scheme (which has played a clear part in pushing prices up) is likely to be at least scaled back soon. Put all those factors into the mix and it is hard to see a rebound in prices in 2019 “or beyond” says Capital Economics.

… is good news
The key thing to bear in mind there is that this is not bad news – unless you very recently paid too much for a house. One thing we have all agreed on in the UK for decades now is that houses are too expensive relative to average earnings. That makes it tough to get on the ladder and tough to move up the ladder. Add today’s high levels of stamp duty to your cost of buying and it’s nasty out there.

But the fact that house prices are not really rising in nominal terms, combined with the small real rise in wages over the last two years, is beginning to change this situation. In 2007 Nationwide’s house price to earnings ratio for the UK was 5.42. At the end of 2016 it was 5.25. Today it is 5.03 times. That’s not ideal – but if this gentle drift down continues and we end up at more like four times, it will suddenly be an awful lot easier to buy (and sell) houses. That would be a very good thing.

Head for Hampshire
Nevertheless, for those of you determined to find the next hot location in the property market and make your fortunes the easy way, Anne Ashworth writing in The Times has an idea for you. She suggests checking out age profiles. Why? Because the younger the crowd, the higher the potential for growth. In areas with an older demographic, you can expect to see sales and downsizing (the cash from which then gets spread around children and grandchildren who won’t necessarily live in the area). In one with a younger demographic you can expect to see the opposite.

Look back over the last decade, says Lucian Cook of Savills and you will see this in action. Those areas with large concentrations of people in their 40s have seen much greater price appreciation (up 56%) than elsewhere. With that in mind, look at somewhere such as Aldershot in Hampshire. There 39% of households are headed by someone between 31 and 40. They won’t be downsizing any time soon.

By: Merryn Somerset Webb

Source: Money Week

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Rising Yields Boosting Professional Buy To Let Investors

Rising yields are boosting professional buy to let investors, especially those considering adding to their portfolios.

Rents have hit a new record high at an average of £896 per calendar month, with growth accelerating to 1.3 per cent a year, according to the ninth edition of Kent Reliance for Intermediaries’ Buy to let Britain report.

As a result, rising yields have now hit a two-year high. The average yield now stands at 4.5 per cent, its highest since the first quarter of 2017.

In London, rents have only risen by 0.5 per cent. However, with property prices falling, yields in the capital have reached 4.1 per cent, their highest level since the end of 2015.

However, despite rising yields, growth of the private rental sector is subdued on the back of government intervention and the economic impact of Brexit uncertainty.

The value of the £1.3 trillion private rental sector grew by £6 billion in the last year, as the expansion of supply dwindled, and property prices weakened in several parts of the country. The value of the average rental property has risen by 0.3 per cent in the last year, with Brexit uncertainty gripping the wider housing market

As the costs of property investment rise, landlords are seeking to recoup these in higher rents to preserve their profitability and protect rising yields. Around a quarter (24 per cent) of landlords, already expect to raise rents in the next six months, nearly five times the number that expect to reduce them.

Improved finances among tenants is also allowing more leeway. Wages are currently rising at 3.4 per cent, up from 2.9 per cent a year ago and well in excess of inflation.

Professional landlords are not just seeking to recoup higher tax costs in the form of higher rents. Many now operate via limited companies to mitigate the impact of the changes to mortgage tax relief. Analysis of Kent Reliance for Intermediaries’ mortgage data shows that in the first quarter of 2019, 72 per cent of buy to let mortgage applications were made through a limited company, significantly higher than in 2016 (45 per cent).

Andy Golding, Chief Executive of OneSavings Bank, commented: ‘Landlords have rolled with the punches as best they can, but there is no escaping that growth is subdued in the private rented sector following four years of government intervention. Brexit uncertainty has only compounded this issue, having the obvious knock-on-effect on landlords’ confidence.

‘The positive news is that for those landlords looking to expand their portfolios, underlying market conditions seem to be changing. Yields are climbing as rents rise faster than house prices, providing further opportunities for committed investors.’

Source: Residential Landlord

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UK holiday let market creating opportunities for investors

UK: Thousands of Britons are opting to spend their holidays closer to home and as a result, holiday let property investors are seeing the potential business opportunities this presents.

That was the opinion of Commercial Trust Limited chief executive Andrew Turner, speaking to Property Reporter, in which he said the holiday and short-term lettings market would experience “significant” growth in 2019.

Last year, estate agent Savills analysed data which revealed 39 per cent of the British public who purchased holiday lets in 2018 opted for staycations in domestic UK properties. That contrasts starkly with the figure of 14 per cent, which was recorded to the economic recession in 2017.

Meanwhile last month, Cottages.com reported a 23 per cent rise in listings in its holiday property portfolio in the space of 12 months.

Turner’s findings included the following:

Market demand
Thousands of Britons are choosing to staycation domestically due to reasons such as Brexit and the resultant economic and passport and customs uncertainty. Tourists are still coming over to visit the UK from abroad and coupled with the weaker pound, it is leading to a larger pool of people looking for short-term letting options when travelling.

Differences in tax
Government changes to buy to let have gradually restricted the amount of mortgage interest tax relief that landlords can claim. By April 2021, landlords will be able to claim a flat level of 20 per cent as a tax credit, unlike in the past when they could previously claim 100 per cent of mortgage interest.

For furnished holiday lets, landlords can still claim all of the interest paid, as well as capital allowances on wear and tear and furniture replacement, while also potentially qualifying for capital gains tax relief as a business.

According to HMRC rules, a property must be available to let for at least 210 days a year and it must be let for at least 105 days in order to qualify for mortgage tax relief.

According to Turner, many landlords now seemingly use properties as a savings vehicle for their future pensions.

Yields
Yields on holiday lets can outperform more traditional forms of buy to let.

2018 statistics from holiday property fund Second Estates showed landlords with holiday homes in Wales were able to achieve yields of 11.7 per cent over a 12-month period.

Yields are dependent on several factors, including property value, the going rate for rent and the number of bookings or demand in the area. Second Estates predicted a further rise for holiday let yields in the coming years.

From 2018 to 2022, the holiday property fund said it envisaged an average 14 per cent return across the UK, with the North West and East of England expecting to achieve returns of around 16 per cent.

Turner summarised by saying that the holiday lets market is thriving and will continue to attract keen interest from property investors. Circumstances with uncertainty over Brexit have created a market for buy to let landlords to look for further entrepreneurial ways to generate and maintain a profit.

He also advised anyone who is considering re-mortgaging and operating a holiday let to speak with a specialist first to fully comprehend the implications of costs.

By Paul Stevens

Source: Short Term Rentalz

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More brokers searching for lenders who accept first-time landlords

In June lenders who accept first-time landlords was the most popular search on criteria sourcing system Knowledge Bank.

This follows a raft of recent product and criteria changes by lenders and suggests that potential landlords have not been put off by a loss of tax incentives and the ban on tenant fees.

Nicola Firth (pictured) chief executive of Knowledge Bank said, said: “The buy-to-let sector has taken a few punches over recent years with the removal of tax incentives, the ability to charge fees and even lenders going into administration.

“However, this is a resilient market and with competitive interest rates, and a wide product selection, potential landlords are asking brokers to find them a home for their loan requirements.

“Buy-to-let is another example of a sector where criteria changes are made on a daily basis so it’s vital for brokers to whittle down the lenders who will consider their clients in advance of any product sourcing. There’s no point finding a great product only to discover that your client is refused on criteria.”

Recent reports also show that product availability for first-time buy-to-let mortgages is the highest it has been for five years, coupled with an average fall in interest rates over the same period.

In other product areas; the monthly criteria activity tracker showed that the maximum age borrowers could be at the end of the mortgage term was the most searched-for criteria in the residential mortgage category.

Other search highlights reveal that the maximum loan-to-value continues to be the most popular search for second charge loans and the minimum age of borrowers at application the most searched for criteria within equity release.

By Michael Lloyd

Source: Mortgage Introducer

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UK housing market shows some signs of recovery – RICS survey

UK housing market showed tentative signs of recovery in June as interest among buyers rose for the first time since shortly after the 2016 Brexit referendum and sales also staged a rare increase, a survey showed on Thursday.

The Royal Institution of Chartered Surveyors (RICS) house price measure – the difference between members reporting price rises and falls – improved to -1, the strongest reading since August last year, from a revised -9 in May.

The reading was stronger than a median forecast of -12 in a Reuters poll of economists and RICS said it pointed to flat property prices over the next two quarters.

Prices in London and the south east of England continued to fall but rose across the rest of the country.

Britain’s housing market slowed sharply after voters decided to leave the European Union more than three years ago, but several indicators have suggested a stabilisation in recent months.

“The latest data provides further evidence of the sales market settling down,” Simon Rubinsohn, RICS chief economist, said in a statement.

“But I don’t get the impression from the insight provided by contributors that this is fuelling hope of a significantly more active market going forward. Many of the factors that have provided a challenge during the first half of the year remain unresolved.”

EU leaders in April delayed Britain’s deadline for the leaving the bloc until the end of October and investors are increasingly worried at the lack of clarity.

Both contenders to become Britain’s next prime minister have said they are prepared for a no-deal Brexit if necessary.

RICS said its survey showed new buyer interest rose for the first time since November 2016 and newly agreed sales edged into positive territory for the first time in 28 months.

There were also signs that sellers were feeling more confident — RICS’ new instructions indicator turned positive for the first time in a year.

Reporting by William Schomberg, editing by Andy Bruce

Source: Yahoo Finance UK

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UK economy probably shrank for first time in seven years – Bloomberg Survey

The latest Bloomberg survey of economists showed that the UK economy probably shrank for the first time since 2012 in the second quarter of this year.

Key Findings:
“Official data this week is forecast by economists to show growth rebounded to 0.3% in May, after a contraction of 0.4% in April.

Still, such a reading would mean an expansion of 0.8% was needed in June just to return a flat result for the quarter as a whole, according to Bloomberg calculations.

The latest poll follows a dismal week of reports in the U.K., with Purchasing Managers’ Indexes showing the dominant services industry barely growing in June, and both construction and manufacturing sectors suffering outright contractions.

The worsening outlook, both at home and overseas, has also left investors and economists rewriting their calls for U.K. interest rates.”

By Dhwani Mehta

Source: FX Street