That was revealed in the latest Halifax House Price Index report, which also showed monthly house price growth of 1.4%, (£3,860) in March — the largest month-on-month increase since last September.

Halifax also said that houses are now £43,577 (18.2%) more expensive than they were two years ago when the UK first entered the pandemic-forced lockdown.

Propertymark’s own Housing Market Report found that the level of housing supply is now 32% lower than before the pandemic, while demand is up by 134%.

Meanwhile, Halifax also reported that the South West of England has overtaken Wales as the UK’s strongest performer in terms of annual house price inflation – up to 14.6%, with the average house price now at £298,162, a record for the region. London also continued its recent upward trend, with prices now up by 5.9% year-on-year, with an average price of £534,977.

Read more: Revealed – percentage of Londoners dissatisfied as house prices continue to rise.

According to Russell Galley, managing director at Halifax, the annual rate of house price inflation of +11.0% continues to track around its highest level since mid-2007.

“The story behind such strong house price inflation remains unchanged: limited supply and strong demand, despite the prospect of increasing pressure on households’ finances. Although there is some recent evidence of more homes coming on to the market, the fundamental issue remains that too many buyers are chasing too few properties,” Galley said.

However, many experts believe that the cost-of-living pressure will likely slow the rate of house price growth this year.

Read more: Halifax: 2022 price growth will slow but remain supported by lack of supply.

“With affordability metrics already extremely stretched, these factors should lead to a slowdown in house price inflation over the next year,” Galley said.

“The cost-of-living crisis will undoubtedly show its effects in the market in the coming months,” added Nathan Emerson, chief executive at Propertymark. “With many households facing increasing energy bills, we could also start to see more efficient homes start to hold premiums over older or less efficient homes.”

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The Bank of England (BoE) has maintained the bank rate at 0.10% following much speculation over an end-of-year rise.

The Monetary Policy Committee (MPC) voted 7–2 to keep the rate at this record-low level, which dates to March 2020, when the rate was lowered from 0.25%.

Minutes from its meeting describe 12-month CPI inflation falling from 3.2% in August to 3.1% in September, and an assumption of a rise to “just under” 4% in October, then 4.5% in November, followed by a peak of 5% in April 2022.

The MPC believes this inflation will “dissipate over time, as supply disruption eases, global demand rebalances, and energy prices stop rising.”

It adds that it is likely to increase the bank rate “over coming months” in an attempt to get inflation back to its 2% target within two years’ time.

Glenhawk chief executive Guy Harrington says: “The MPC seems undeterred by the fact that the past 18 months have disproportionately benefitted existing homeowners and this rate decision will continue to make it harder for first-time buyers (FTBs) to get onto the property ladder.

“Affordability will now be stretched to an unreasonable point, with inflationary pressure squeezing more people out of the market and delaying first home purchases, with no house price cliff edge in sight.”

However, North London estate agent and former Rics residential chairman Jeremy Leaf says: “Activity and price growth has been slowing since government support schemes started winding down.

“An interest rate rise would compromise confidence for some, particularly FTBs on tight budgets concerned about the future direction of travel of rates. As the housing market is built on confidence, a rate rise, and perhaps two or three more to follow, would inevitably have an impact on activity.”

And Investec’s Hayley Scott adds: “This feels like the right decision. The economy is still in recovery mode, and GDP is yet to regain all the lost ground from Covid.

“Importantly, the full impact of the end of furlough is yet to be seen and, despite the government’s insistence, the reintroduction of Covid restrictions can’t be ruled out.

“However, if the labour market holds up and the recovery does not stall, a first rate rise in the coming months is almost inevitable and will be increasingly necessary. The pressure on developers from build cost and wage inflation is growing all the time, whilst there are few winners from rampant house price inflation.”By Gary Adams 4^th November 2021 12:29 pm

The endorsement mark (below) provides a badge of trust for potential and existing customers to look for, reflecting the security which the Council’s standards provide.

It will act as a recognisable statement of quality that offers confidence and reassurance for consumers by embodying members’ commitment to quality and professionalism in the products and services they offer.

Members can use the new endorsement mark immediately, and the Council is encouraging them to adopt it as soon as practical, with a grace period which runs throughout 2021 during which time members are permitted to use the previous logo.

This year represents 30 years since the Council’s predecessor, Safe Home Income Plans (SHIP), established the first consumer-focused standards for equity release products and advice, bringing voluntary regulation to the market in 1991 ahead of the Mortgage Code’s introduction in 1997.

Today’s standards have evolved over the last 30 years to complement statutory regulation since 2004 and provide what the Council believes to be the highest level of consumer protection for property-based lending in later life.

The new endorsement mark has been launched to members as part of a brand refresh which the Council has adopted to better represent the innovative and vibrant equity release market. This evolution forms part of a strategic programme of activity underway, including the appointment of a Risk, Policy and Compliance team to oversee the continuing revision and evolution of consumer-focused product and advice standards.

The Council also launched a new Competency Framework for advisers last month and has developed other adviser resources to support good practice across the market.

These milestones come at a time of significant growth in the Council’s membership. Over the last year, more than 100 firms have joined the organisation, taking the total number of member firms to 586, while individual membership has grown by almost 200 to reach 1,454.

The Council’s 2021 annual member census found 93% of respondents agree the safeguards and protections enable consumers to trust that equity release is safe and reliable.

Jim Boyd, CEO of the Equity Release Council, said:

“Over the course of 30 years of setting consumer-focused standards, the equity release market has been transformed to become part of mainstream conversations about funding later life. Today’s product range offers flexible finance to older homeowners, backed by robust safeguards and protections.

“At a time when people are living longer lives and have an unprecedented choice of options to release equity at affordable rates, our new member endorsement mark provides a sign of quality, professionalism and trust, by demonstrating to potential customers that members are committed to best practice in the products and services they offer.”

The home moving firm forecasts the average house price, which it says was £338,951 in January this year, to come to £308,773 by the above date.

The three-month forecast is created by analysing conveyancing quotes given through the firm’s comparison tool, which is typically done 12 weeks before completion.

The firm says that deals that miss the stamp duty deadline will likely be either renegotiated or have house prices split across the sales chain, “further impacting prices, although this won’t become evident until Land Registry price paid data is published.”

It adds that it anticipates more activity from first-time buyers in the Spring and early Summer as prices drop and lenders bring out more high-LTV mortgage products.

On a regional basis, Reallymoving expects to see the biggest falls in prices in the South West, the South East and Yorkshire and the Humber by April – at 11.7 per cent within the first two regions and 10.9 per cent in the latter.

London, meanwhile, may well see prices drop by 5.4 per cent within the same time frame.

Reallymoving chief executive Rob Houghton says: “Now, for the first time, we can see the early impact of the end of the stamp duty holiday on prices, with buyers in January agreeing to pay less as they factor in the cost of a tax bill.

“Others who agreed deals earlier will still be hoping to make the deadline, and it’s likely we’ll see a sharp rise in fallthroughs in early April, as well as gazundering, which could impact final sale prices further if sellers are agreeable to spreading the cost – and many will be, rather than see their deal fall flat.

“Transparency and openness are key, and rather than hoping for the best, practical buyers and sellers will be opening up conversations now to try and ensure they can still proceed if they fail to complete by 31st March.”

By Gary Adams 15th February 2021 3:01 pm

Bank Rate held at 0.1% with unanimous vote

ROZI JONES | 4TH FEBRUARY 2021

“GDP is expected to fall by around 4% in Q1 2021, in contrast to expectations of a rise in the Committee’s November Report.”

The Bank of England’s Monetary Policy Committee has voted unanimously to maintain Bank Rate at 0.1%.

In the Committee’s meeting, it noted that Covid-19 vaccination programmes are under way, which has improved the economic outlook. Nevertheless, it said recent UK and global activity has been affected by an increase in Covid cases, including from newly identified strains of the virus, and the associated reimposition of restrictions.

GDP growth slowed in Q4 2020, as a rise in Covid cases and consequent restrictions to contain the spread of the virus weighed on economic activity.

The impact on the economy is not expected to be as severe as in Q2 2020, during the UK’s first lockdown. GDP is expected to fall by around 4% in Q1 2021, in contrast to expectations of a rise in the Committee’s November Report.

UK GDP is expected to have risen a little in Q4 to a level around 8% lower than in Q4 2019, materially stronger than expected in the November Report.

GDP is projected to recover rapidly towards pre-Covid levels over 2021, as the vaccination programme is assumed to lead to an easing of Covid-related restrictions and people’s health concerns.

In the MPC’s central projection, conditioned on the market path for interest rates, CPI inflation is projected to be close to 2% over the second and third years of the forecast period.

In its minutes, the MPC said: “If the outlook for inflation weakens, the Committee stands ready to take whatever additional action is necessary to achieve its remit. The Committee does not intend to tighten monetary policy at least until there is clear evidence that significant progress is being made in eliminating spare capacity and achieving the 2% inflation target sustainably.”

Hinesh Patel, portfolio manager at Quilter Investors, commented: “While the market pricing for negative interest rates has persisted for some time, today the Bank of England has quashed the idea of rates going sub-zero, at least for now. We would have to see significant economic weakening in the UK for them to become a reality, and with inflation expected to tick up as the year goes on, the BoE can’t afford to sink sterling as we get back into recovery mode.

“Importantly, the BoE will be watching the unemployment rate closely, particularly given we should begin to see the roadmap emerging for how the furlough scheme and business rates exemptions get withdrawn. The unemployment rate without furlough will be running well above 10%, and this could easily go higher, so the Bank needs weapons in its arsenal if it is to continue tackling this crisis.

“That said, there are reasons to be optimistic as a UK investor. With the hugely successful vaccination drive and supply issues being overcome, it’s not unrealistic to believe the second half of the year will produce the return of consumer confidence. With recent economic data also beating estimates of late, it could be that we are past the point of peak pessimism.”

Luke Bartholomew, senior economist at Aberdeen Standard Investments, added: “No surprises today from the Bank of England, at least in terms of its interest rate decision. What is perhaps more interesting is that the decision was unanimous, with no participants voting for a cut to negative interest rates despite several expressing their attraction to the policy. This is unlikely to be the end of that debate, with the Bank releasing feedback from various stakeholders today along with their previous analysis. However, the chance of a cut to negative rates at least in the near term has probably decreased somewhat, as the Bank watches to see how vaccine roll out progresses and how the economy eventually recovers from the Covid shock.”

By Leah Milner 10^th December 2020 4:51 pm

The lender’s biggest reductions will be to its 85 per cent loan-to-value fixed rate deals.

Shared ownership rates will also be cut by up to 36 basis points.

The following Intermediary exclusive deals are reducing:

• For purchase at 65 per cent LTV five-year £1,495 fee reduced by 0.04 percentage points to 1.35 per cent
• For remortgage at 65 per cent LTV five-year £1,495 fee reduced by 0.10 percentage points to 1.29 per cent

Virgin is cutting rates on the following core residential deals:

• 65 per cent LTV two-year fee-saver reduced by 0.12 percentage points to 2.2 per cent
• 65 per cent LTV five-year £995 fee reduced by 0.06 percentage points to 1.39 per cent
• 75 per cent LTV two-year fee-saver reduced by 0.3 percentage points to 2.23 per cent
• 75 per cent LTV five-year £995 fee reduced by 0.25 percentage points to 1.88 per cent
• 85 per cent LTV two-year £995 fee reduced by 0.16 percentage points to 2.83 per cent
• 85 per cent LTV three-year £995 fee reduced by 0.15 percentage points to 2.94 per cent
• 85 per cent LTV five-year £995 fee reduced by 0.15 percentage points to 2.94 per cent
• 85 per cent LTV two-year fee-saver reduced by 0.4 percentage points to 3.24 per cent
• 85 per cent LTV three-year fee-saver reduced by 0.4 percentage points 3.29 per cent
• 85 per cent LTV five-year fee-saver reduced by 0.43 percentage points to 3.36 per cent

The following shared ownership are falling:

• 85 per cent LTV two-year £995 fee reduced by 0.36 percentage points to 2.83 per cent
• 85 per cent LTV five-year £995 fee reduced by 0.16 percentage points to 3.28 per cent
• 90 per cent LTV two-year £995 fee reduced by 0.10 percentage points to 3.29 per cent

Virgin is also reducing its product transfer deal at 65 per cent LTV five-year £995 fee reduced by 0.04 percentage points to 1.39 per cent

The lender is changing the incentives available on some deals.

It will offer cashback on selected purchase products instead of free valuations.By Leah Milner 10^th December 2020 4:51 pm

By Leah Milner 13^th March 2020 9:44 am

Mortgage lenders have been setting out the special measures they are taking to help borrowers affected by the fallout from the coronavirus outbreak.

Santander has today launched a helpline for customers requiring financial support (0800 01 56 382).

The lender says it will consider allowing borrowers in difficulty to defer or reduce payments.

It will also consider increasing credit limits and offering help to businesses that are suffering cashflow issues.

The bank has warned customers to be on their guard for phishing scams and other attempts by fraudsters to take advantage of the situation.

It has asked customers to make sure they are set up for online banking and know their log in details.

First Direct announced yesterday that it would consider allowing affected borrowers to extend the term of their mortgage or switch to a more favourable rate.

For borrowers with unsecured debt it might allow breathing space on repayments.

Customers might also be able to increase their credit card and overdraft limits to help cope with financial strain.

The announcements come after Royal Bank of Scotland/ Natwest and TSB both said earlier this week that they would allow borrowers suffering a sudden loss of income due to the virus outbreak to defer mortgage repayments.

The RBS/Natwest group says it will allow borrowers to postpone payments for up to three months, while TSB is offering a deferral of up to two months.

RBS says loan repayments may also be postponed for the same amount of time.

Customers who are struggling as a result of the virus outbreak would also be able close fixed savings accounts to access cash with no early closure charge.

Refunds will be applied on credit card cash advance fees, customers can apply for an increased temporary credit card limit, and request an increased cash withdrawal limit of up to £500 for debit cards. By Leah Milner 13^th March 2020 9:44 am

The charity for the elderly offered its equity release advice through its commercial arm Age Co, but the service was run by Hub Financial which is owned by equity release lender Just.

The company denied that the decision to close its advice arm was linked to an investigation by the newspaper last year.

It did not rule out returning to the market with another broker partner.

In its investigation, the Telegraph found that the advisers from Hub Financial was routinely recommending deals from its parent company.

Age UK would receive commission of 0.75 per cent of the loan value of lifetime mortgages taken out through the service.

The advice service operated from a limited panel of Aviva, Bridgewater, Legal & General, OneFamily and Just.

However, while this limited scope was made clear, the investigation found that in most cases borrowers were offered a deal from Just.

The newspaper alleged that, when advising customers, Hub’s staff “followed a methodology that prompts them to offer Just deals for the most common consumer needs”.

It said the only instances in which a customer will not be offered a plan from Just would be on loans worth less than £30,000 where interest is paid monthly, plans with variable interest rates or other cases that do not fall within Just’s criteria.

The newspaper claimed customers were not told if they could have qualified for a better deal elsewhere.

A spokeswoman for Age Co, the commercial arm of the charity, says: “Age UK Enterprises’ contract with HUB Financial Solutions for its provision of the Age Co Equity Release Advice Service came to an end earlier in February.

“Any prospective customers who enquired about the service before 3 February can continue to gain Age Co Equity Release advice as long as they make contact with HUB before 3 March, and existing customers who have taken out Equity Release through HUB won’t be affected.

“We continue to believe that Equity Release can be a good solution for older people under the right circumstances, and we welcome the increasing number of reputable providers and products in the market. It is possible that Age Co may provide Equity Release options in the future, but there are no details confirmed at this point.

“Age UK Enterprises’ exit from the Equity Release market was not prompted by The Daily Telegraph’s enquiries about the Age Co Equity Release Advice Service in May 2019.” By Leah Milner 14^th February 2020 2:28 pm