Can UK Green Mortgage help climate change?

The UK has set itself a target of net zero greenhouse gas emissions by 2050, but that will be a challenge for the housing market.

See the source image

As things stand, domestic housing accounts for nearly 20% of the UK’s carbon emissions. At the same time, there are few ‘green’ mortgage products and even fewer that have been set up to fund making homes more energy efficient.

This matters, because upgrading current buildings will be what helps cut emissions.

According to the UK Green Building Council, around 80% of the buildings that will exist in the UK in 2050 are already constructed.

Few of those are energy efficient. Based on the government’s energy performance certificates (EPC), most of the UK’s housing stock is in the middle, ‘D’, band.

Top of the list in making housing more energy efficient is cutting fuel use. Around 10% of the UK’s carbon footprint comes down to heating – mostly domestic heating.

In principle, green mortgages that help homeowners manage the cost of boosting energy efficiency should be widespread and keenly priced.

In May 2020, the Green Finance Institute published a report on financing energy efficient buildings.

This cited “growing evidence that favourable financing terms can be achieved on securities that have an environmental or social impact label or certification”. 

But only three lenders in the UK currently offer green mortgages – Barclays, Ecology Building Society and Nationwide.

Chris McHugh, our Director of the Centre for Sustainable Finance, describes the UK green mortgage market as “a cautious beginning”.

“The eligible customer base, property types and notional amounts are limited. The price incentives for borrowers appear to be small or non-existent.”

The UK green mortgage market

Indeed you can count the number of green mortgage lenders on the fingers of one hand.

Ecology Building Society and Nationwide both offer lending for green home improvements. Ecology is a very small firm specialising in green finance including sustainable builds. In 2019 it lent £43.5m across 308 sustainable properties and projects.

However, compared to many other mortgage lenders, it’s relatively expensive – with a current standard variable rate of 4.1%.

Nationwide Building Society is a much bigger player with around 12% of the UK market. It  offers preferential rates on green improvements for loans up to £25,000, but only for existing customers.

Barclays has around 8.6% of the UK mortgage market. It does offer green mortgages for “energy-efficient new-build” homes provided by “partner suppliers”. But it doesn’t have any plans to offer mortgages for green home improvements in the near-term.

Lloyds, which has the biggest overall share at nearly 16%, announced in January that it plans to launch green mortgages, but did not give further details.

Right now, lenders may be cautious about broadening their green mortgage offerings as demand is likely to have been hit by the Covid-19 pandemic

“There are far more pressing matters on consumers’ minds,” says John Somerville, our Head of Regulatory Relationships.

“With all green properties and loans, there’s likely to be an extra cost and more underwriting. The appetite to jump through those hoops will be strongly diminished for some time to come.”

Source: The London Institute of Banking and Finance

Pls Comment, like and share

Thinking of buying a property?

Need help with residential and commercial property purchase/finance in the UK from start to finish, Please Contact me

Selling or renting your property in Greater Manchester? Get same day EPC for £45 only

Dennis Bebo – MSC, BSC, DEA, CeMAP

UK property prices continues to drop as COVID19 impact deepens

A recent survey from Estate Agents across England showed that house prices across the UK fell at the fastest rate since the financial crisis in May with potential buyers saying they would wait at least six months before returning to the housing market.

See the source image

According to the report from the Nationwide Building Society, one of the UK’s largest mortgage lenders, the average price of a home dropped 1.7 per cent in May from the previous month to £218,902. This comes after April’s 0.9 per cent gain and is the biggest monthly fall since February 2009.

The figures came as the UK continues to lift its coronavirus lockdown, which has been in place since March. Last month, the government said construction sites could open if it were safe to do so, along with factories.

But the outlook for the housing market remains highly uncertain, said Robert Gardner, Nationwide’s chief economist. “Behavioural changes and social distancing are likely to impact the flow of housing transactions for some time,” he said.

Gardner said that would-be buyers are “now planning to wait six months on average before looking to enter the market.” The annual growth rate slowed to 1.8 per cent, down from 3.7 per cent in April and the slowest since December.

Pls Comment, like and share

Thinking of buying a property?

Need help with residential and commercial property purchase/finance in the UK from start to finish, Please Contact me

Selling or renting your property in Greater Manchester? Get same day EPC for £45 only

Dennis Bebo – MSC, BSC, DEA, CeMAP

UK Property sale hits record low

Residential property sales in the UK in April hit their lowest monthly level since comparable records began in 2005, new figures show.

Houses

There were 38,060 transactions in April, according to provisional numbers from HM Revenue and Customs (HMRC).

This was less than half the level seen in the same month last year.

Spring is usually a busy period for the property market, but the coronavirus lockdown halted activity.

The government lifted many of these restrictions on the sector in England in mid-May. The total number of UK property sales is slightly less than the previous low when the taps were turned off in the property market at the height of the financial crisis in January 2009.

Source: BBC News

Pls Comment, like and share

Thinking of buying a property?

Need help with residential and commercial property purchase/finance in the UK from start to finish, Please Contact me

Selling or renting your property in Greater Manchester? Get same day EPC for £45 only

Dennis Bebo – MSC, BSC, DEA, CeMAP

Two Rochdale roads in Greater Manchester painted with thank you message

Two roads in Rochdale have been painted with messages to thank key workers from medical staff to care workers, social workers, waste operatives and many more for the great work they are doing during this awful pandemic. The markings are now down at Whitehall Street at the approach to Rochdale Infirmary and outside Birch Hill Hospital.The thank you message outside Rochdale Infirmary

Source: Rochdale News

Pls Comment, like and share

Thinking of buying a property?

Need help with residential and commercial property purchase/finance in the UK from start to finish, Please Contact me

Selling or renting your property in Greater Manchester? Get same day EPC for £45 only

Dennis Bebo – MSC, BSC, DEA, CeMAP

UK Property market estimated to fall by 13%, Is it the right time to buy?

Economists and housing experts are forecasting UK-wide price falls of up to 13%, with “brutal” declines in some areas, as the property market struggles to rebuild during the coronavirus crisis.

See the source image

The range of forecasts from the major researchers is markedly wider than usual. At one end is the Centre for Economics and Business Research, which predicts that 2020 prices will be down by 13% “as a lack of transactions, high uncertainty and falling incomes take their toll”. But the estate agent Savills said the hit to the market could be more like 5%, and a third of valuation surveyors are predicting that price falls may be limited to 4% or less.

The post-lockdown market will be a buyer’s market, said Jonathan Hopper of Garrington Property Finders, as he forecast falls of 10% nationally and 15% in some areas.

“Areas with a more resilient jobs market should see values hold up better, but elsewhere the price correction could be more brutal,” he said.

Knight Frank, in a revised forecast issued this week, said it anticipated a fall of 7% in 2020, more than its earlier forecast of 3%. Its analysis suggested prices had already fallen 5% since March, with a further downtick to come.

Source: The Guardian 

Pls Comment, like and share

Thinking of buying a property?

Need help with residential and commercial property purchase/finance in the UK from start to finish, Please Contact me

Selling or renting your property in Greater Manchester? Get same day EPC for £45 only

Dennis Bebo – MSC, BSC, DEA, CeMAP

UK Government COVID-19 updates

See the source imageHere are some recent announcements from the government:

  • The number of confirmed deaths from Covid-19 rose above 30,000, putting the UK at the highest official death toll in Europe.
  • The 4,000-bed London NHS Nightingale hospital is to stop admitting new patients. It will be kept “in hibernation” in case there is a second wave of coronavirus patients.
  • The four other Nightingales – located in Manchester, Birmingham, Bristol and Harrogate – will also be wound down.
  • The UK’s test, track and trace plans will begin with the trial of the NHS contact tracing app on the Isle of Wight.
  • Cybercriminals, aided by hostile states, are seeking to exploit the coronavirus crisis, according to Dominic Raab, the foreign secretary and first secretary of state.
  • The UK is now “past the peak” of the coronavirus spread and the government will publish a plan for easing lockdown measures this week, prime minister Boris Johnson said.
  • The NHS has started restoring other services, such as cancer care and mental health support, and will also restart fertility services.
  • Business interruption loans for small firms have been extended from 80% to 100%.
  • A support package is available for the transport industry, designed to keep the flow of goods and services running smoothly in and out of the UK – and around the country.
  • A vaccine is needed before social distancing can end entirely, with Professor Chris Whitty, chief medical officer for England, suggesting some restrictions would be necessary for a “long period of time”.
  • Human trials of a potential vaccine for coronavirus created by an Oxford research team have begun.
  • Loans totalling £250m have been made available to unlisted, high-growth companies and £750m of grants and loans are available for SMEs in research and development.
  • The government is to pay 80% of most people’s salaries, up to £2,500 per month, in addition to a bailout package worth £350bn for businesses struggling due to the coronavirus. Self-employed people will be able to apply for a grant of up to £2,500 per month.

UK House Price Index indicate falling house price

In England the February data shows, on average, house prices have fallen by 0.6% since January 2020. The annual price rise of 0.8% takes the average property value to £246,341.

The regional data for England indicates that:

  • the South West experienced the greatest monthly price rise, up by 0.5%
  • the East Midlands saw the most significant monthly price fall, down by 1%
  • London experienced the greatest annual price rise, up by 2.3%
  • the East of England saw the lowest annual price growth, down by 1%

UK house prices

UK house prices increased by 1.1% in the year to February 2020, down from 1.5% in January 2020. On a non-seasonally adjusted basis, average house prices in the UK decreased by 0.6% between January 2020 and February 2020, compared with a fall of 0.3% during the same period a year earlier (January 2019 and February 2019).

See the source image

The UK Property Transactions Statistics for February 2020 showed that on a seasonally adjusted basis, the estimated number of transactions of residential properties with a value of £40,000 or greater was 103,870. This is 6% higher than a year ago. Between January 2020 and February 2020, transactions increased by 4.5%.

House price growth was strongest in Wales where prices increased by 3.4% over the year to February 2020, up from 2.5% in January 2020. The highest annual growth within the English regions was in London, where average house prices grew by 2.3%, this was due to a decrease in average house price between January 2019 and February 2019. The lowest, and only negative, annual growth was in the East of England, where prices decreased by 1% over the year to February 2020.

Source: GOV.UK

Pls Comment, like and share

Thinking of buying a property?

Need help with residential and commercial property purchase/finance in the UK from start to finish, Please Contact me

Selling or renting your property in Greater Manchester? Get same day EPC for £45 only

Dennis Bebo – MSC, BSC, DEA, CeMAP

Real service

See the source image
Pls Comment, like and share
Thinking of buying a property?
Need help with residential and commercial property purchase/finance in the UK from start to finish, Please Contact me
Selling or renting your property in Greater Manchester? Get same day EPC for £45 only
Dennis Bebo – MSC, BSC, DEA, CeMAP