pdate - Deposit Accounts | Asset Finance | Bridging Loans · 2017. 6. 28. · scheme in the new homes sector. The year-on-year collapse in buy-to-let purchases was at least in part

pdate Summer 2017

Get a brighter perspective - see page 9

Brokers are fighting backKeith Sangwin comments onthe growth in brokerintroduced asset financebusiness

Investing in a betterbroker experienceRob Owen reports on thecontinuing expansion ofUTB's bridging andmortgage offer

Future opportunitiesoutweigh threatsCautious optimism is thebest policy for developerssays Noel Meredith

Complex scenariosand simple solutions Agility is key to structuringcomplex finance solutionssays Gerard Morgan Jackson

First-timebuyers returnJohn Stewart finds that first-timebuyers have overtaken homemovers for the first time since 1996

News and views from your Specialist Bank

18018 Update summer17.qxp_v7aa 16/06/2017 16:09 Page 1

It has instead resulted in one of the biggestupsets in recent political history. Wethought we had uncertainty before, well thefloodgates of uncertainty have been welland truly opened.“Be fearful when others are greedy and

greedy only when others are fearful.” Thisinvestment mantra has served WarrenBuffet very well over the past fifty yearsand it’s an attitude many individuals andbusinesses will adopt in the face of currentevents. Uncertainty breeds fear but it canalso bring opportunities. Let’s be clear,we’re not about to throw caution to thewind at the prospect of ongoing politicalturmoil, however, United Trust Bank hasbeen an outstanding lender in both benignand difficult markets. We’ve been a reliableand reassuring constant for brokers andborrowers in fair and stormy weather.When other lenders disappeared during thecredit crisis, we stepped up and increasedour lending and we have done so everyyear since. This growth has accelerated in the last

three years. Having moved to bigger officesjust two years ago to accommodate ourexpanding operation, we have taken morespace on another floor in CityPoint,providing us with additional desk space,meeting rooms and training facilities. Wenow have a team of six BDMs introducingour bridging and mortgage products tomore brokers across the UK than we everhave done before. We have four asset

finance sales people covering from theSouth of England all the way up to Scotlandand our eight Property DevelopmentDirectors and Managers in our developmentfinance division are dealing with brokersand developers from Cornwall to the NorthWest. Include our Structured Finance teamand we have over twenty people takingUTB’s products and services to brokers andcustomers all over the country. To supportour growth ambitions, we are developingnew products, exploring new markets,investing in new technology and alwaysfine tuning our internal processes to makean already outstanding service even better.We’re still hiring experienced and customerfocused staff who will help our brokers andcustomers to achieve their goals. It’s only byenabling SMEs, professionals, developersand individuals to realise their ambitionsthat we will also achieve ours.Some of the greatest opportunities

present themselves in times ofuncertainty. And although we may notwish to be greedy whilst others arefearful, we certainly intend to maintain avery healthy appetite.

pdate Summer 2017

News and views from your Specialist Bank

Get a brighter perspective - see page 9

Brokers are fighting back

Keith Sangwin comments on

the growth in broker

introduced asset finance

business

Investing in a betterbroker experience

Rob Owen reports on the

continuing expansion of

UTB's bridging and

mortgage offer

Future opportunitiesoutweigh threats

Cautious optimism is the

best policy for developers

says Noel Meredith

Complex scenariosand simple solutions

Agility is key to structuring

complex finance solutions

says Gerard Morgan Jackson

First-timebuyers returnJohn Stewart finds that first-

time

buyers have overtaken home

movers for the first time since 1996

Harley Kagan, Group Managing Director

Cover storyFirst time buyers returnJohn Stewart, former Director ofEconomic Affairs for the HomeBuilders Federation

Contributors to this Issue

Asset FinanceKeith Sangwin

Development FinanceNoel Meredith

Mortgages & BridgingRobert Owen

Structured FinanceGerard Morgan Jackson

Market informationLatest statistics from Savills, theLand Registry, Nationwide andthe Council of Mortgage Lenders

INSIDEthis issue…

The upside touncertaintyThe election on June 9th was intended to provide a strongerhand for the government to push through policy at home andprovide a solid basis for Brexit negotiations.

pdate18018 Update summer17.qxp_v7aa 16/06/2017 16:09 Page 2

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Brokers are fighting back

KeithSangwin Keith Sangwin – Asset Finance Sales Manager

As a ‘broker only’ asset finance lender thisis excellent news as we believe thatbrokers play a vital role in the market,helping SMEs to choose the right fundingoptions as well as the most appropriatelenders. It also signals that brokers arefighting back against the direct lenders.According to the FLA, new business

introduced by brokers in March 2017totalled £615m, an increase of 29%compared to the same month last year.In addition, in Q1 2017 brokerintroduced new business was 25%higher than in Q1 2016.We’re obviously keen to support

brokers as much as we can and wecontinue to develop the UTB team to takeadvantage of this and future growth inthe asset finance market. As well asdeveloping the team to improve theservice to brokers, we’ve also enhancedour credit and underwriting capability. Weconstantly review our criteria so that wecan offer funding to an even broaderrange of customers and our ambition isto increase our own volumes as themarket expands and to have the rightpeople, products and processes in placeto respond to the growing demand, at thesame time maintaining our high brokerservice standards.The asset finance market is extremely

competitive and the new entrants to thelending arena which have appeared overthe last few years have increased brokerand customer choice. Between us, assetfinance funders provide solutions forSMEs in a greater variety ofcircumstances and with an everincreasing diversity of assets requiringfunding. One sector which stood out inthe FLA report as experiencing a markedupturn in activity was funding for plantand machinery. Coincidentally this is oneof the sectors we’re looking at to extend the range of assets we’ll consider funding and we should be making anannouncement along those lines soon.With many SMEs still finding it hard to

raise capital for expansion or acquisitionsthrough their usual business banks, orsimply wishing to have their financialeggs in several baskets rather than one,we have been particularly busy withrefinancing deals. One such transaction,completed in April this year, was a£950,000 refinance for an expanding busand coach operator. Our longstanding

Asset Finance

It was pleasing to see the recent figures from the FLAsuggesting that there has been significant growth in broker introduced asset finance business.

knowledge and experience of the sectorwas vital in being able to consider,approve and then pay out the deal in amatter of days. This is the kind of flexibleand responsive funding which is helpingto drive SME interest in asset finance andwe fully intend to keep supportingbrokers and borrowers to seizeopportunities for investment and growth.

We’re obviously keen tosupport brokers as much aswe can and we continue todevelop the UTB team totake advantage of this andfuture growth in the asset

finance market.

UTB’s Asset Finance team has completed a £950,000 refinance package of 27 vehicles.The transaction, for a long established bus and coach operator, enabled the firm tocontinue an ambitious acquisition programme expanding their operations in theMidlands, the North West and the South East of England.

Paul Taylor, Asset Finance Business Development Manager, commented:“This is one of the largest refinance deals we’ve transacted at UTB, certainly in terms ofthe number vehicles involved anyway. The hard work of the UTB team, the broker andour valuers, ensured that the customer secured the funding they needed swiftly andwithout fuss.”

UTB completes 27 vehicle refinance package


Guest article

First-time buyers returnJohn Stewart, former Director of Economic Affairs for the Home Builders Federation

Housing market volumes and pricesstalled in the early months of 2017.Seasonally adjusted residential propertytransactions climbed from 98,000 inDecember 2016 to 102,000 in January2017, but then remained almost static inFebruary (101,000), March (103,000) andApril (100,000). Over this same period, seasonally

adjusted mortgage approvals for housepurchase recorded a gradual decline sincethe start of 2017: from 69,000 in January2017 to 68,000 in February, 66,000 inMarch and 65,000 in April. However, withan average of 67,000 per month for thefirst four months of 2017, the number ofmortgage approvals for house purchasematches the average of 67,000 per monthin both 2015 and 2016.It is very striking that the stability of

housing market volumes extends backseveral years. Residential transactions

averaged 102,000 per month in 2014,103,000 per month in 2015, 102,000 permonth in 2016 and 102,000 per monthacross the first four months of 2017.Although the number of overall

transactions remain broadly static, datafrom the Council of Mortgage Lenders(CML) show a stark contrast between first-time buyer transactions, which were up10% in Q1 2017 compared with Q1 2016,and transactions by home movers (down16%) and buy-to-let buyers (down 39%). The number of first-time buyers in the

12 months to March overtook the numberof home movers for the first time since1996. First-time buyer demand has beenboosted by several factors: record lowinterest rates, help from the Bank of Mumand Dad and the Help to Buy Equity Loanscheme in the new homes sector. The year-on-year collapse in buy-to-let

purchases was at least in part a

consequence of the surge in sales inMarch 2016 as investors rushed to beatthe introduction of a 3% SDLT surchargefor investment and second-home buyers.However even after allowing for thisshort-term distortion, buy-to-let saleswere sharply lower, year on year,throughout 2016. This suggests that theSDLT surcharge has had a morepermanent negative impact on demand.Changes to the tax treatment of mortgageinterest payments by investors, to beintroduced between April 2017 and 2020,seem likely to have a further depressingimpact on buy-to-let demand.House prices have also been broadly

static in the early months of 2017.Between December 2016 and April 2017,the Nationwide house price index rose bya very weak 1.4%, while the seasonallyadjusted index fell by 0.2%, with smallprice reductions in each of the three

The number of first-time buyers in the 12 months to March 2017 overtook the number ofhome movers for the first time since 1996.


pdate

months February, March and April.The Halifax house price index rose by

2.0% between December and March, witha 1.1% fall in the seasonally adjustedindex, with price falls in January (-1.1%)

and March (-0.1%).Reports from the Bank of England’s

business agents, based on informationgathered over the period late March tomid April, reflect the statistical evidence ofa stalled market: “Housing market activityhad remained muted. Both the demandfor, and supply of property was subdued,but broadly in balance overall.”

Weak London MarketThe London market stands out asparticularly weak. According to thelatest Royal Institution of CharteredSurveys (RICS) housing market survey,London house prices have been fallingfor the last 14 months. London agentsreported an average of 8 sales over thethree months to April, well below theaverage for most other regions and lessthan half the England & Wales averageof 17 sales. The South East (11 sales)

and East Anglia (12 sales) also displayedrelatively weak markets.In its March Trading Update, Berkeley

Group, one of the largest London newhome developers, reported a 16% year-

on-year fall in reservations in the post-Brexit seven months August 2016 toFebruary 2017. The reduction wasexperienced across all price points.

New home sales buoyantNew home sales have been more buoyantthan sales across the market as a whole.While there are no official transactionstatistics for the new homes sector, anumber of indicators point to relativelystrong sales, supported in particular bythe Help to Buy Equity Loan scheme.Most of the large house builders have

reported increases in sales, with strongforward order books. For example,Barratt, the largest UK house builder, ison track to achieve 17,350 sales in theyear ending June, the highest for nineyears. The company’s forward sales, up12,7% in early May on a year ago, wereat a record level.

Growth in new home sales hastranslated into very strong growth inhouse building activity. First-quarterprivate housing starts and completionswere both up a remarkably strong 22%

on a year ago. In addition, privatehousing recorded the strongest growth ofany sector in the RICS 2017 Q1construction workload survey. This hasbeen the case since 2013 Q1.

Housing Market OutlookThe market is likely to remain subduedduring the rest of 2017. Real incomes, akey economic driver of housingdemand, are being squeezed.Affordability is very stretched in manyareas of the country. The SDLTsurcharge and changes to the taxtreatment of interest payments willcontinue to depress buy-to-let demand.However historically low interest rates,a continuing shortage of supply in boththe new and second-hand sectors, andthe highly successful Help to Buy EquityLoan scheme in the new build sector,should put a floor under prices.

Growth in new home sales has translated into very stronggrowth in house building activity.

IT IS VERYSTRIKING THATTHE STABILITYOF HOUSINGMARKETVOLUMESEXTENDS BACKSEVERAL YEARS

102k

2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7

103k

102k

102k

AVERAGE RESIDENTIAL TRANSACTIONS PER MONTH

JAN – APRIL


Page header

Just over two years later and we’veexpanded onto another floor of CityPointbecause we’ve run out of space. One ofthe reasons for our rapid growth hasbeen the success of our entry into themortgage market with our range ofsecond charge loans. From just 3 peopleearly in 2016 we have grown to a teamof 16 underwriters and 4 support staffdedicated to serving our Master Brokersand the borrowers they introduce.Having received such a warm welcomeby the market we want to ensure thatour high service standards don’t fall dueto the volume of cases now coming in.Our bigger team will ensure that brokersreceive just as good a service going

forward as they did when we firstlaunched, if not better.We haven’t just been developing the

mortgage team however. Last summer Jo Edwards joined the Bank as BusinessDevelopment Director for bothdisciplines. From then on, Jo, thecommercial directors – Gavin Diamondand Buster Tolfree – and I started to lookat how we could bring some of the bestpractices of the mortgage and bridgingteams and apply them across the wholedivision. The two products are differentbeasts but they also have similarities. Weidentified that with some changes wecould share some resources, make ourinternal processes slicker and improve

the turnaround time and service for bothproducts. As our customers are at theheart of everything we do, we want toensure that all of them benefit from thesame high service levels. Subsequently we recognised that with our mortgagebook growing rapidly we needed to think creatively about the best way to lookafter our mortgage customers whilstkeeping the necessary resource availableto scale up our mortgage business and quickly develop and launch new productsin response to customer need. Aftercareful consideration, we agreed that the

Mortgages & Bridging

In 2015, the Bank moved to new, bigger offices in Moorgate to give us room to grow.

Things don’t stand still for very long at UTBRobert Owen, Managing Director – Mortgages & Bridging

Paul Mansell

Rob Love

Chris Pedlar

Mike Walters

Jigar PatelJo Edw


best solution for our customers and the Bank was to outsource themanagement of our mortgages backbook and I’m very happy to say thatafter a meticulous six month project wehave successfully completed a verysmooth transition.As a team, we also felt that our

ability to give swift credit decisionsshould be priority and this, combinedwith our fast turnaround at initialenquiry and quick, credit approvedreliable decisions, will lead to animproved experience for brokers andcustomers alike. Overseeing thatoperation in bridging is Faye Quigley,our newly appointed UnderwritingManager who joined us from RBS. Fayewill be ensuring that the proposals wereceive are dealt with quickly andprofessionally and, as we’re aiming togrow our volumes as well as improveour service, these changes are vital tosupport our new team of BDMs.Jo Edwards has built a BDM team to

deliver UTB’s ambitious growth targets

for the division. Rob Love and Nick Warren have been joined by Chris Pedlar,Paul Mansell, Andy Keehner and Mike Walters. Rob, Nick and Mike will focuson bridging, looking after their existingcontacts and developing new ones inand around London and towards theWest. Mike lives in Cardiff and he will beintroducing our bridging offer to brokers

in Wales and the South West. Chris, Pauland Andy will introduce the Bank’smortgage and bridging products tobrokers further afield than we’vepreviously been able to cover effectively.Chris will cover the Midlands and the

North West, Paul the North East and Scotland, and Andy will serve brokers in East Anglia and London.Jigar Patel will continue as Key

Account Manager, assisting our brokerswith training and compliance mattersfor the mortgage side of the division. These changes are key to the future

success of UTB’s mortgage and bridgingofferings, but we are not stopping there.At UTB we continually push ourselves toimprove and over the coming monthsyou will see more positive changes tosupport the growth of the combinedMortgages & Bridging division. Bymaking best use of technology we willimprove our communication and boostour responsiveness. We are enhancingour online Broker Portal, streamlininginternal processes and continuing torecruit excellent staff to deliver what isultimately our number one goal - toprovide the very best products andservice to our brokers and customers.

Our bigger team will ensurethat brokers receive just asgood a service going forwardas they did when we firstlaunched, if not better.

pdate

o Edwards

Buster Tolfree

Nick Warren

Andy KeehnerGavin Diamond


Development Finance pdate

NoelMeredithNoel Meredith – Executive Director

However, it’s only since Theresa Maytriggered Article 50 that the implications ofthe split, both the arduous task ofnegotiating the terms and the likely impact,are starting to sink in. The General Electionresult will further fuel these feelings ofuncertainty. Recently, news items havefocused on lower prices achieved in someareas along with lower volumes of salesand properties taking longer to sell thanpreviously. But this is no cause to panic.The central London market has borne the

brunt of the downturn in activity, but it hasalso seen the biggest gains over the lastdecade. What is more, reports fromdevelopments we’re funding are more

positive. First time buyer activity has beenparticularly strong, especially whenunderpinned by Help to Buy equity loans,and this has helped to fill some of the voidcreated by the stark reduction in Buy to Letpurchases. As John Stewart notes in hisarticle, there was a rush to avoid the 3%stamp duty surcharge on second homesintroduced on the 1st of April 2016 andthis created a falsely high level of activityas investors tried to beat the deadline. Eventaking that into account however, thepunitive measures introduced by theChancellor to cool BTL activity seems tohave had a sustained effect with a 78%drop in BTL mortgaged purchases in March

this year compared to March 2016.As property index after property index

points to a flattening of prices, it’simportant to remember that there are alsovery real factors supporting residentialproperty values and our view at UTB is thatwe’re not about to see a major pricecorrection outside of prime areas wherethis has already occurred. Demand for newhomes is still outstripping supply in mostareas, government initiatives such as Helpto Buy equity loans are encouraging andsupporting the FTB sector, and willcontinue until 2021 at least. Mortgageinterest rates remain at historically lowlevels making house purchase affordable inmany areas.That doesn’t mean we shouldn’t be a

little more cautious. If the market isentering a period of subdued price growth,developers would be wise to take a moreconservative stance on their projected salesvalues and keep a tighter rein on theirbudgets. Rising prices provide a safety netwhich may in the past have saveddevelopers who were over ambitious in theplanning stage or over spent during thebuild. For the next few years that net maybe taken away.Experienced developers working with

experienced lenders should have little tofear. United Trust Bank has developed itsbusiness by recruiting highly skilled andknowledgeable professionals whose careershave spanned a variety of marketconditions. With our commitment tosupporting SME housebuilders and ourstrong focus on relationship lending we arecertain that the opportunities to come willoutweigh any threats.

Future opportunitiesoutweigh threats

The UK economy largely shrugged off any uncertainty aboutthe fallout of Brexit in the months following the referendum.

Brexit uncertainty is the biggest challenge for BrokersThat’s one of the findings of United Trust Bank’s mostrecent broker sentiment survey

Harley Kagan, Group Managing Director of UnitedTrust Bank, commented:“The results of this survey demonstrate just how manychallenges brokers and lenders have in common. Brexituncertainty, recruiting the right staff, the increasingburden of regulation; we’re all in the same boat and wemust try to ensure that we’re all rowing in time. UTBactively supports UK SMEs and smaller house builders,and we believe the best way to show our confidence inUK PLC surviving and thriving through Brexit is to keepproviding the funds which enable our vibrant SME sectorto invest and grow and for builders and developers toconstruct thousands of much needed new homes.”

What do you believe will be the key challenges affecting yourability to reach your business goals this year?

Uncertainty over the longer-term effects of Brexit 41%

A shortage of experienced and knowledgeable staff 25%

The time/resources I or my business has to committo managing regulation 22%


Structured Finance pdate

GerardMorganJackson

Complex scenariosand simple solutionsGerard Morgan Jackson – Head of Structured Finance

Often, it’s the speed at which largefacilities can be accessed which is the keyreason behind choosing structuredfinance over other funding vehicles. Othertimes it’s the complexity of the customer’spersonal or business circumstances, thenature of their portfolio or the means bywhich they derive an income whichprompts them to choose a lender whichwill take a holistic view of their situationand make pragmatic and commerciallending decisions. Many customers andtheir brokers just want the assurance ofdealing with a specialist lender which canquickly understand a complex situationand suggest a straightforward solution.UTB’s Structured Finance division is

committed to providing a full suite ofproperty finance solutions for itscustomers. Combining nearly 100 years ofexperience in banking, development,commercial, bridging and other bespokeproperty finance vehicles, the StructuredFinance team is perfectly placed toprovide a service which draws upon theskills and deep specialist knowledge foundacross the Bank.We were recently approached by a

broker seeking a £3.2m facility for a

customer who needed to 100% fund hisnext project. The customer was anexperienced building contractor anddeveloper with a strong track record ofsuccessful projects in East London.Subsequently the customer had built asmall portfolio of buy to let properties andwas in the process of completing adevelopment of 8 apartments with anestimated gross development value ofcirca £4m. With this current project nearing

completion, the customer had identified asite suitable for his next development. Thesite has planning permission for twoblocks of 20 apartments with a GDV ofcirca £12.5m and the facility requestedwould enable the customer to acquire thesite, settle the substantial Stamp Dutyliability, make the required pre-commencement contributions to the localauthority under the Section 106agreement and settle the current debt onthe current project of 8 apartments.There were two key exits available and it

was most likely that a combination of thetwo would eventually be used to repay theloan. The first was an investment loan onthe block of 8 apartments based on the

rental income generated once the unitswere let. Any shortfall from theinvestment finance would be repaid froma development facility on the 40 unitproject once pre-construction works hadbeen completed.The equity available between the two

developments provided sufficientassurance to the Structured FinanceTeam that the loan met their criteria. The£3.2m facility was agreed and drawndown just a few weeks from receiving theinitial proposal.By quickly assessing the borrower’s

situation, appraising his existing portfolioand the potential for the proposed newdevelopment, we were able to give a swiftdecision which enabled him to completethe negotiations to acquire the site withinweeks. Subsequently he was able topurchase the site at an advantageousprice and commence the planningproposal for his ambitious new projectwithout delay.Simplifying matters further, the client is

now talking to us about providing aninvestment facility on the completed 8apartment development and adevelopment finance facility for the£12.5m follow-on project. This continuitywould enable the client to make aconsiderable cost savings, removing theneed for a new valuation, reducing legalfees and avoiding new facility fees with adifferent lender. In addition, using UTB tofund both the site acquisition costs andthe exits would also save the client timeand reduce the administrative burden.Unsurprisingly, that’s something mostcustomers are keen to pursue.

Structured finance is increasingly being employed by a diverserange of customers in a wide variety of circumstances.

ENTER our Bright PerspectiveBroker Promotion for a chance towin £5,000 worth of BritishAirways holidays.You can enter our prize draw by visiting our stands at thisyears key financial services exhibitions. Look out for ournext Mini Poll and other announcements for a chance towin £5,000 worth of British Airways holidays.

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K E R P R O M O T I ON

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BriGhTPERSPECTIVE

View to a thrill


UTB News pdate

UTB’s Asset Finance teamentertained 20 brokers and guestsfrom the South of England with asuperb day’s racing at Sandown. TheVIP box with balcony was ideallysituated near the winning post – aposition which brought joy to somebut sadness to others. Withchampagne and canapes to start,everyone was soon in the mood fora flutter and some interestingsystems were employed in anattempt to pick out the winners.Yellow on a jockey’s colours cameout marginally ahead of the nod &

wink from a horse when visiting theinner parade ring!! A deliciousbuffet lunch and afternoon teaaccompanied with wine and otherdrinks on hand throughout the daykept everyone well fed and watered.Klara Hanrahan, Asset Finance BDM,said: “When the closing race wasrun it appeared that most of ourguests had beaten the bookies. Buteven those going home with slightlylighter wallets agreed that it hadbeen an excellent day out withcolleagues and friends, and that’salways a winner.”

Sandown’s a favourite with brokers

United Trust Bank has won the awardfor Best Second Charge MortgageLender at the 2017 Financial ReporterAwards. This is the third win for theteam in less than a year, having won theNewcomer of the Year Award at theLoanTalk Awards in January 2017 andthe Best Second Charge Mortgage

Lender category at the Personal FinanceAwards in November 2016.Buster Tolfree, Commercial Director –Mortgages, commented:“Each of these awards represents thehard work and dedication shown byeveryone in the UTB Mortgage team.Since launching our Second Charge

products, just over a year ago, brokersand customers alike have welcomed ourcommon-sense approach to underwritingand our outstanding broker andcustomer service.“As a new entrant to the sector, it’s very

pleasing to have made such a positiveimpact in such a short time. I’d like tothank the team for their commitment toproviding the very best customerexperience and also recognise thesignificant role played by the select groupof Master Brokers who supported us inour ambition to shake up the market.”

UTB lands another award forSecond Charge Mortgages


• the average price of a property in the UK was £215,848• the annual price change for a property in the UK was 4.1%• the monthly price change for a property in the UK was -0.6%

Market information pdate

YEAR MONTH LENDING(£ms)

2016

April 17,680

May 17,935

June 21,530

July 21,054

August 22,058

September 20,473

October 20,346

November 21,145

December 19,958

2017

January 19,712

February 17,862

March 20,731

April est. 18,400

Land Registry House Price Index Average annual price change March 2017

Further slowing in annualhouse price growth in May

CML gross mortgage lending

Source: CML – May 2017

Source: Savills Research – February 2017

Further information and forecasts for themainstream and rentals market, together withthe transactions, can be found in the SavillsResidential Property Focus 2017 Q1 atwww.savills.co.uk/research

At United Trust Bank we look closely at a range of different charts,statistics and predictions to help us understand an ever-changingeconomic environment. Included within these are the excellentmarket reports from Savills from which our first chart is taken, andthe latest house price data from the Land Registry and Nationwide.

Additionally, gross lending figures from the Council of MortgageLenders provide a clear picture of activity in the mortgage market.It is by looking at these different statistics and others that enableus to understand and appreciate the conditions within which ourcustomers operate.

House prices show third consecutive monthly decline for the first time since 2009.Annual house price growth dips to 2.1%, providing further evidence that housingmarket is losing momentumSource: Nationwide – May 2017

NB: These forecasts apply to average prices in the second hand market. New build values may not move at the same rate

Headlines May-17 Apr-17 Monthly Index* 412.4 413.3 Monthly Change* -0.2% 0.4% Annual Change 2.1% 2.6% Average Price (not seasonally adjusted) £208,711 £207,699

*Seasonally adjusted figure (note that monthly % changes are revised when seasonal adjustment factors are re-estimated)

Price, monthly change and annual change by country and government office region

Country and government office region Price Monthly change Annual change

England £232,530 -0.6% 4.4%

Northern Ireland (Quarter 1 - 2017) £124,007 -0.8% 4.3%

Scotland £137,139 -1.0% 0.7%

Wales £147,746 1.4% 4.3%

East Midlands £176,213 -0.2% 6.7%

East of England £277,127 -0.8% 6.7%

London £471,742 -1.5% 1.5%

North East £122,298 -1.3% -0.4%

North West £150,250 -0.6% 6.2%

South East £311,514 -0.5% 3.8%

South West £240,222 -0.7% 2.8%

West Midlands Region £180,293 0.3% 6.5%

Yorkshire and The Humber £149,606 -0.6% 4.0%

Prime market five year forecasts

Source: Land Registry –

May 2017

"The prime market has remainedsensitive in the wake of stampduty changes and Brexit but thekey to success is all in the pricing”

Gaby Day, Savills ResearchFebruary 2017


Specialist banking with a bright perspective

Call us today 020 7190 5555

www.utbank.co.uk we understand specialist banking

Asset Finance I Bridging Finance I Development Finance I Professional Lending I Specialised Mortgages I Structured Finance


Documents

pdate - Deposit Accounts | Asset Finance | Bridging Loans · 2017. 6. 28. · scheme in the new homes sector. The year-on-year collapse in buy-to-let purchases was at least in part