Down it Comes

And so after 14 consecutive interest rate rises since Dec 2021, the Bank of England has dropped the interest for the first time – from 5.25% down to 5%. The last time the rate was at 5% was Sep 2008. Just remember that by longterm historical standards, that 5% isn’t all that high (for example, rates were almost 14% in the 90s). Mortgage rates have already been decreasing fairly dynamically over the last few weeks. Notwithstanding any further inflationary shocks to the global financial world, hopefully this heralds a new stability forming in the market.

Source: Bank of England (see rates since 1694 here).

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The Mortgage Works is reducing rates by up to 0.45 percentage points, with new rates starting from 3.49%. This includes a two-year fixed rate for buy-to-let at 3.49% (up to 65% LTV) and a five-year fixed rate for limited company buy-to-let at 4.59% (up to 70% LTV). Additionally, Landbay has cut rates by up to 20 basis points on some products, with rates now starting from 4.34% for five-year fixed products up to 75% LTV.

Nottingham Council reports a five-fold increase in temporary accommodation since 2017. Mick Roberts, a major landlord, attributes rising rents and homelessness to the council’s 2018 selective licensing scheme. The council counters, blaming interest rate hikes. The housing strategy aims to end routine B&B use for families by 2025 (Source).

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Landlords must meet EPC C energy efficiency targets by 2030 or face rental bans, says NRLA. Ed Miliband announced the mandate without detailing implementation plans. The NRLA urges clarity on funding, warning smaller landlords may struggle with costs. Previous EPC targets were scrapped by former PM Rishi Sunak (Source).

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In July, the Goodlord Rental Index recorded the highest rental averages ever, with the average cost in England rising to £1,470, a 7.5% year-on-year increase. The South West saw a 10% annual rent increase, while the West Midlands had the smallest rise at 4%. Void periods shortened from 17 to 11 days.

Molo Finance has reduced buy-to-let mortgage rates by up to 25 basis points for UK residents, expats, and non-UK residents. UK resident rates start at 4.35% for two-year fixed and 4.96% for five-year fixed. Paragon Bank and Santander also announced rate reductions, with Paragon’s two-year fixed rates starting at 3.89%.

Who are M2P? Married2Property are a family-run property company that aims to build social good through property.

The National House Building Council reports housebuilding is at half the rate needed to meet the new Labour government’s targets. Q2 2024 saw 29,281 new homes registered (down 23% year-on-year) and 33,847 completed (down 6%). Despite quarterly increases, doubling the current rate is essential in order to have a chance of achieving Labour’s 1.5 million homes target over five years.

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Song of the Week: 🎶 Money Changes Everything – The Smiths 🎸

And Finally… We’ve all heard the phrase “dying at your desk”. Those previously or currently in an office job may empathise more than a little with this video from Corporate Rebels. Don’t worry, there is another way!