Property news roundup: Rising numbers taking out riskier mortgages

Plus, new online guide for tenants, super-prime London, and short term lets

More home buyers are taking out a mortgage with a deposit of less than 10 per cent and a loan worth more than 3.5 times their income than at any point since 2008, according to the Bank of England.

Its figures showed that the number of these riskier mortgages increased in the first three months of 2014.

Jonathan Harris, director of mortgage broker Anderson Harris, said that while lending figures had risen to the highest amount since the start of 2008, they was still 8.5 per cent less than the end of 2013 and suggested that the "housing market frenzy is moderating".

"Borrowers are protecting themselves where they can with more than 80 per cent of new mortgages taken on a fixed basis," he said. "The growing threat of an interest rate rise means the allure of the fixed rate is strong."

Short-term letting for Londoners

New measures will end rules preventing London residents from renting out their own homes on a short-term basis, claims Communities Secretary Eric Pickles.

Currently, Londoners who want to rent out their homes for less than three months technically still have to apply for planning permission from the council, although this is irregularly enforced by different London boroughs.

The aim is to benefit London's tourism industry by expanding the amount of accommodation available, as well as providing a chance for homeowners to make money when they are absent.

Mr Pickles said that a new measure in the Deregulation Bill would give Londoners the freedom to rent out their homes on a temporary basis, for example when they are on holiday, without having to deal with the red tape of a council permit.

The measure will not allow homes to be turned into hotels or hostels.

Who's buying in 'super-prime' London?

The number of British buyers of £10m+ properties in London rose from 36 per cent in 2013 to 53 per cent since the start of 2014, according to Knight Frank research.

Its figures indicated that UK and European buyers represent more than three quarters of the market in 2014 compared to under half in 2013.

Tom Bill, Head of London Residential Research for Knight Frank, said: "There are more British buyers in the super-prime bracket than at any time since the collapse of Lehman Brothers."

New 'How to rent' guide

A new online guide to give private rented sector tenants information on their rental rights has been launched by the Government as part of their battle against rogue landlords. It includes:

* advice and information on tenancy deposit schemes, bill payments and tenancy length

* a checklist of what the landlord must provide tenants, including gas certificate and deposit paperwork

* information on the requirements of the landlord to maintain the structure of the property and give tenants at least 24 hours’ notice before entering the property

* the legal requirements for landlords and tenants on ending tenancies and returning deposits

Susan Fitz-Gibbon, President of the Association of Residential Lettings Agents, said: "Embarking on renting a property can often be a daunting time for people, with would be tenants sometimes expected to make a quick decision, provide extensive information and sign numerous documents before their dream home is snapped up by someone else."

Discover more property articles at Homes and Property
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Recruitment Genius: Accounts Assistant - Fixed Term Contract - 6 Months

£15000 per annum: Recruitment Genius: One of the largest hospitality companies...

Recruitment Genius: Electricians - Fixed Wire Testing

£28000 - £32000 per annum: Recruitment Genius: As a result of significant cont...

Recruitment Genius: Customer Service Advisor

£16575 - £19000 per annum: Recruitment Genius: An excellent opportunity is ava...

Recruitment Genius: Senior Digital Marketing Executive

£30000 - £35000 per annum: Recruitment Genius: This leading and innovative con...

Day In a Page

How to stop an asteroid hitting Earth: Would people co-operate to face down a global peril?

How to stop an asteroid hitting Earth

Would people cooperate to face a global peril?
Just one day to find €1.6bn: Greece edges nearer euro exit

One day to find €1.6bn

Greece is edging inexorably towards an exit from the euro
New 'Iron Man' augmented reality technology could help surgeons and firefighters, say scientists

'Iron Man' augmented reality technology could become reality

Holographic projections would provide extra information on objects in a person's visual field in real time
Sugary drinks 'are killing 184,000 adults around the world every year'

Sugary drinks are killing 184,000 adults around the world every year

The drinks that should be eliminated from people's diets
Pride of Place: Historians map out untold LGBT histories of locations throughout UK

Historians map out untold LGBT histories

Public are being asked to help improve the map
Lionel, Patti, Burt and The Who rock Glasto

Lionel, Patti, Burt and The Who rock Glasto

This was the year of 24-carat Golden Oldies
Paris Fashion Week

Paris Fashion Week

Thom Browne's scarecrows offer a rare beacon in commercial offerings
A year of the caliphate:

Isis, a year of the caliphate

Who can defeat the so-called 'Islamic State' – and how?
Marks and Spencer: Can a new team of designers put the spark back into the high-street brand?

Marks and Spencer

Can a new team of designers put the spark back into the high-street brand?
'We haven't invaded France': Italy's Prime Minister 'reclaims' Europe's highest peak

'We haven't invaded France'

Italy's Prime Minister 'reclaims' Europe's highest peak
Isis in Kobani: Why we ignore the worst of the massacres

Why do we ignore the worst of the massacres?

The West’s determination not to offend its Sunni allies helps Isis and puts us all at risk, says Patrick Cockburn
7/7 bombings 10 years on: Four emergency workers who saved lives recall the shocking day that 52 people were killed

Remembering 7/7 ten years on

Four emergency workers recall their memories of that day – and reveal how it's affected them ever since
Humans: Are the scientists developing robots in danger of replicating the hit Channel 4 drama?

They’re here to help

We want robots to do our drudge work, and to look enough like us for comfort. But are the scientists developing artificial intelligence in danger of replicating the TV drama Humans?
Time to lay these myths about the Deep South to rest

Time to lay these myths about the Deep South to rest

'Heritage' is a loaded word in the Dixie, but the Charleston killings show how dangerous it is to cling to a deadly past, says Rupert Cornwell
What exactly does 'one' mean? Court of Appeal passes judgement on thorny mathematical issue

What exactly does 'one' mean?

Court of Appeal passes judgement on thorny mathematical issue