Kensal Rise & Queens Park, 69 Chamberlayne Road, London, NW10 3ND
Kensal Rise & Queens Park, 69 Chamberlayne Road, London, NW10 3ND
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Bank of England governor Andrew Bailey says his monetary policy committee could be a “bit more aggressive” in cutting interest rates later this year.

In an interview in The Guardian Bailey says that the UK economy has proved more resilient than he feared two years ago, or even a year ago. 

He is quoted as saying: “I think the economy has come through the shocks of the last five years better than many of us feared. So there’s a base there to develop. The government is right to focus on how to encourage capital investment. There is a clear need for it in terms of infrastructure. 

“We’ve got at least three very big structural issues out there. One is the ageing population, which obviously we’re not alone in that one. Two is the demands for increase in defence spending. And the third one is dealing with climate change.”

Inflation as measured by the Consumer Prices Index currently stands at 2.2% – just above its official 2% target – but Bailey told the newspaper that he was encouraged by the fact that cost of living pressures had not been as persistent as the Bank thought they might be. 

He said if the news on inflation continued to be good there was a chance of the Bank becoming more “a bit more activist” in its approach to cutting interest rates at its upcoming meetings in November and December.

One issue which may affect timings of future rate cuts was the growing tension and conflict in the Middle East. The possibility of a major lift in oil prices – not seen so far in the period since he Hamas attack on Israel last October – remained a threat to financial stability, warned Bailey.

He also hit back at claims by the former prime minister Liz Truss that the Bank of England was part of a so-called “deep state” that had set out to thwart her plans. Truss’s problems were of her own making, the governor said.

Bailey’s suggestion of a more aggressive approach towards rate cuts appears to have been welcomed by the markets, with Swap rates falling.

Mark Harris, chief executive of mortgage broker SPF Private Clients, says: “A number of lenders are already in the process of repricing – Coventry’s two and five-year fixes which top the best buy tables at 3.89 and 3.69 per cent respectively are being pulled tonight, while HSBC is repricing downwards today and NatWest and Barclays are repricing tomorrow.

“Santander is also repricing tomorrow and is likely to top the ‘best buys’ with its new deals – a two-year purchase option at 3.84 per cent for those borrowing 60 per cent loan-to-value and a five-year fix at 3.68 per cent, also at 60 per cent LTV.

“This ongoing rate war among lenders is great news for borrowers as there are some really compelling deals being launched, which will go some way to helping affordability.”

A property expert says landlords must use lettings agents to avoid becoming victims of the growing threat of fraud.

Jonathan Rolande’s advice comes as new analysis by the London-based firm, Benham and Reeves, has highlighted the increasing problems facing letting agents with forged identification, digitally-manipulated supporting documents, and undeclared CCJs and IVAs.

The issue is said to be particularly acute in London, where agents have been increasingly reliant on digital screening methods to lighten their workloads.

Rogue tenants have kept pace with the rapid evolution in AI and digital technology, which can quickly process vast amounts of data, and have been increasingly inventive in methods they use to game the system.

Last month alone, the firm said it detected eight forged passports or IDs, 40 altered bank statements and other supporting documents, 50 fake employment references, and 30 undeclared county court judgments and IVAs.

There are reports that personal information available on LinkedIn are being used by scammers to dupe HR departments into providing salary and employment references.

Fake IDs and references often used by fraudsters to gain access to a property who then re-rent it to people who would not otherwise be able to get a flat or house.

Another common scam is called “cuckooing” where accommodation is rented out legitimately and is then promptly taken over by criminals and turned into a cannabis farm.

A growing type of fraud is overloading flats with undocumented workers, which can result in landlords and agents being prosecuted for breaching regulations, particularly those relating to multiple occupancy.

Rolande, founder and director of House Buy Fast, says: “When we think of fraud in the property sector, we usually think of hard-pressed tenants falling victim to scams where deposits are put down on non-existent homes or impersonation fraud, where fraudsters sell a house from under the owner’s feet.

“In the fast-paced world of lettings, landlords and their agents must be on the lookout for tenant fraud, where documents are faked to show different names, income and previous renting history.

“If a tenant using fake information manages to rent a property, there are a number of issues to worry about.

“Firstly, anyone prepared to commit fraud to rent a home is unlikely to be a model tenant. Some reasonable people may feel forced to fake documents due to stringent income multiples and the housing crisis but most will have less ‘understandable’ reasons.

“Criminals looking for properties to run illegal activities will use fake documents. Growing cannabis or subletting and turning the property into an illegal HMO are very profitable options for fraudsters.”

Rolande says that unless a landlord has substantial experience they should use a reputable letting agent to find a tenant, adding that “saving a fee may end up costing considerably more in the long run.”

 

A new analysis shows that one in five rental properties across Britain costs as much per month as a typical income pays. 

Benham and Reeves analysed current rental market stock looking at asking rents and how these compare to the earnings of the average person – £35,481 per year or £2,957 per month.

The analysis found that 22% of properties are currently listed with a monthly asking rent at, or above, average monthly earnings of £2,957.

Almost half (47%) of London rental properties commanded an asking rent in excess, whilst the East Midlands saw just 2.5%.

Super-prime rents – where average monthly asking rent is at, or above, the £35,000 average annual income – accounts for just 0.3% of all current rental listings.

These super prime lets are almost exclusively located in London, accounting for 96%, with a handful across the South East, North West and South West.

Director of Benham and Reeves, Marc von Grundherr, comments: “Rents have soared in recent times and our research demonstrates just how tough it is for the average person, with one in five rental properties commanding asking rents that require an entire month’s income or more.

“Unfortunately, there’s no end in sight when it comes to the rental crisis and this is largely due to the fact that we simply don’t have an adequate level of stock to meet demand – an issue our new Labour government seems set on exacerbating.

“As a result, we’re seeing properties let at pace, often before they’ve even reached the market, with numerous tenants all fighting it out for a single property, which, of course, drives prices ever higher.

“If we don’t incentivise landlords to invest into the buy-to-let sector in order to address the imbalance of supply and demand then who knows, we might all be looking at a monthly rent of thirty odd thousand pounds a month before too long.”

Evidence from a mortgage lender’s survey suggests first time buyers massively under-estimate how long the purchase of a home actually takes.

Aldermore undertook a large survey in June, of some 2,000 prospective first time buyers and 500 actual FTBs. Prospective purchasers under-estimated the homebuying process by nearly five months.

Recent actual FTBs spent the longest time viewing properties – it took an average of four months before they found their ideal property. Liaising with estate agents took over a month longer than people expect.

Activity How long people expect it to take How long it actually takes
Viewing homes 20 weeks 18 weeks
Liaising with mortgage brokers 10 weeks 16 weeks
Negotiating with solicitor/conveyancer 11 weeks 14 weeks
Liaising with solicitor/conveyancer 16 weeks 15 weeks
Liaising with mortgage provider 11 weeks 16 weeks
Liaising with estate agents 11 weeks 17 weeks
Other (getting insurance, sorting renovations) 11 weeks 15 weeks

 

Jon Cooper, director of a mortgage company, comments: “For brokers, helping clients navigate the homebuying process is about more than just securing a mortgage, it’s about guiding them through a potentially complex and lengthy journey. First time buyers often underestimate the time involved, especially when dealing with solicitors, estate agents, and unexpected issues like survey-related repairs. This can lead to delays that frustrate eager buyers.”

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