Market Intelligence



The financial markets influence decisions taken by borrowers and investors alike. We follow the stories that affect financial market data and put them in a news feed of market intelligence below.

Yorkshire and the Humber a BTL Hotspot    February 2020

A survey led by Knight Knox, residential property experts, looked at the responses of 500 landlords in the UK and found that the majority of buy to let landlord with properties in Yorkshire and Humberside are feeling positive about the future of the rental market, with many thinking about buying more properties to rent in the future.
The respondents with properties in the Yorkshire and Humberside region said they intend to buy another buy to let property in the next five years (60%), compared to the national average of 40%.
“The results of our survey demonstrate that Yorkshire is fast becoming a hot spot for investment in the private rented sector, while the capital is in decline,” said Andy Phillips, commercial director at Knight Knox.
“The major cities in Yorkshire, such as Leeds and Sheffield, are growing rapidly, and with that come increased demand for rental properties in these areas – and savvy investors are capitalising on this in droves,” he continued.
In addition, the property specialist’s statistics reveal that almost half of Yorkshire landlords rely on renting out properties as their primary income, earning an average of £26,474 per year.
“The results show that landlords in Yorkshire evidently see their future lying with buy-to-let properties and the negative Brexit commentary clearly doesn’t seem to have deterred them,” Phillips concluded.
Knight Knox is an established property consultancy with a particular emphasis on city centre residential property markets. It focuses on many different parts of the property development process, all of which are vital when developing outstanding homes. With departments specialising in land acquisition, design, marketing, financing, lettings, property management and sales, Knight Knox is one of the few companies involved at all stages of the property lifecycle.

Growth in buy-to-let business predicted    February 2020

An increase in buy-to-let mortgage business over the next year is predicted on the back of strong remortgage levels and portfolio expansions, with research by Paragon finding a fifth of brokers expect more buy-to-let business this year, compared to 11% who believe there will be less. Richard Rowntree, managing director of mortgages at Paragon, commented: “Buy-to-let lending has been driven by remortgage business in recent years, so it’s great to see the proportion of lending for portfolio extension purposes increase and hit its highest level for nearly three years.” He went on: “It’s also encouraging to see that the balance of brokers expecting to write more buy-to-let business is positive for 2020 as confidence has been subdued for much of the past four years.”
Financial Reporter

UK borrowing falls    January 2020

UK government borrowing in December was less than expected, at £4.8bn, and down £0.2bn compared to the same month a year earlier, according to the latest figures from the Office for National Statistics (ONS). As chancellor Sajid Javid prepares to boost spending in his March Budget, for the financial year so far – March to December – UK government borrowing stood 8% higher than a year earlier at £54.6bn. Overall public debt was £1.82tn at the end of 2019, an increase of £35.5bn on December 2018, while corporate tax receipts dipped 3.4% year on year, the biggest drop since 2012/13.
The Times The Daily Telegraph City AM Daily Mail

Brokers helped back £15bn of lending in 2019    January 2020

Brokers helped originate almost £15bn of lending last year, with most coming from new borrowers, according to an analysis from the NACFB. The association’s members helped arrange £14.9bn of loans in 2019, of which 65% were new business and 35% were from clients seeking to refinance. The research found brokers choose lenders based on a variety of factors but 37% value a low rate, 18% go by previous experience, 16% by best fit and 6% by speed. The most common reasons lenders turned away deals in 2019 were a client’s poor credit history, the sector being deemed too risky, the business lacking enough collateral, the lack of strong cashflow and the amount requested being too high, the NACFB said. The average deal size arranged by NACFB members was £450,145.
P2P Finance News

Let-to-buy loans rise in popularity    January 2020

A relatively unknown type of mortgage that allows families to move into a new home without selling their existing property is growing in popularity, as many struggle to shift their homes. Mortgage broker Trinity Financial has reported a 15% increase in the sale of "let-to-buy" mortgages in the past six months, while some 20 mortgage lenders now offer such loans. Let-to-buy allows borrowers to buy a new home while they keep their current property and rent it out.
The Daily Telegraph

75% see BTL investment as 'worthwhile'    January 2020

A survey conducted by Perrys Chartered Accountants shows that 75% of people still believe that investing in buy-to-let is worthwhile, with the proportion jumping to 83% among millennials. Among reasons that may deter people from BTL investment, 28% said Brexit uncertainty was a factor, while 29% pointed to increased tax and stamp duty rates.
Financial Reporter