Aberdeen mortgage market begins to stabilise in second quarter

Thrugelmir

For Hamish. :beer:

New data from the Council of Mortgage lenders shows lending activity in Scotland began to stabilise in the second quarter, mirroring the trend seen in the UK more widely. In the second quarter of 2009 there were 11,400 house purchase loans taken out in Scotland, a 50% rise from 7,600 in the previous quarter, but 39% below the same quarter a year earlier.
The rise in mortgage lending in Scotland was spread evenly across first-time buyers and home movers. There were 4,300 loans to first-time buyers, up 54% from the previous quarter, and 7,200 loans to home movers, up 53% from the first quarter.
There is some evidence that the tightening in lending criteria is slowing. First-time buyers typically put down a 25% deposit in the second quarter, unchanged from the previous quarter but up from 13% a year earlier. Home movers typically borrowed 70% of the property’s value, down from 71% in the previous quarter and 73% in the same quarter a year earlier.
Income multiples rose modestly in the second quarter. First-time buyers typically borrowed 2.85 times their income (3.06 across the UK), up from 2.74 in the first quarter of 2009. Home movers typically borrowed 2.55 times their income (2.73 across the UK), compared with 2.51 in the previous quarter.
Scottish first-time buyers typically spent 14.1% of their income on mortgage interest payments (compared with 15% across the UK), the lowest share since the first quarter of 2006. And interest payments typically consumed 11.1% of Scottish home movers’ income (compared with 11.3% across the UK), the lowest share since the second quarter of 2004.

http://www.cml.org.uk/cml/media/press/2380

HAMISH_MCTAVISH

Thrugelmir wrote: »

For Hamish. :beer:

:rotfl:

and

:beer:

Actually, Aberdeen is doing rather well at the moment on a variety of indices. The ASPC quarterly set has prices down a whopping 5.4% from Q3 2007 at last release (Q2 2009) and the RoS weekly flash data has Aberdeen up 5.5% in the last 28 days alone.... Although also still down slightly from peak, but that data is quite noisy. But year on year positives are just around the corner I think..... And Aberdeen technically peaked in 2008, not 2007, (by about a percent higher) so who knows, we may be one of the first to recover past peak.

Bubblicious.....:j

IveSeenTheLight

As a vested interest Landlord for property in Aberdeen, I am an avid follower of the property marketplace there.

Here is a graph taken from the Registers of Scotland Executive.
The original data can be found here
http://www.ros.gov.uk/professional/eservices/land_property_data/lpd_stats.html

IveSeenTheLight

HAMISH_MCTAVISH wrote: »

Actually, Aberdeen is doing rather well at the moment on a variety of indices. The ASPC quarterly set has prices down a whopping 5.4% from Q3 2007 at last release (Q2 2009) and the RoS weekly flash data has Aberdeen up 5.5% in the last 28 days alone.... Although also still down slightly from peak, but that data is quite noisy. But year on year positives are just around the corner I think..... And Aberdeen technically peaked in 2008, not 2007, (by about a percent higher) so who knows, we may be one of the first to recover past peak.

Aberdeen is in quite a unique position and it only goes to re-itterate that people need to focus on their on local areas and understand that maketplace and economic factors.

Many people refer back to the 90's as a reference to this correction lasting 6-7 years, however there are a number of areas that fully recovered within one year.

http://forums.moneysavingexpert.com/showpost.html?p=18398993&postcount=72

Unfortunatly, the HBOS link is no longer valid, but I saved the data and can forward if PM'd

Here's another thread where I highlighted the need for understanding regional variations

http://forums.moneysavingexpert.com/showpost.html?p=10696347&postcount=1

mewbie_2

IveSeenTheLight wrote: »

Aberdeen is in quite a unique position...

Well it does have the largest collection of nutters in the Western world.

I mean this is a fairly friendly way, so no need for it to be reported as Abuse leading to subsequent PPR. It is a joke, not particularly venemous. It does not mean I am stalking the poster and trying to undermine them or score points of them at every turn. It is part and parcel of the bull v bear debate, and questioning the sanity of the opposing camp is hopefully permissible.

malkie76

Thing about Aberdeen(shire) is the oil industry. Be interesting to see what the property prices are like if (when?) the oil runs out.

I'm guessing Stewart Milne will be in trouble, but he's had an excellent run out of it.

IveSeenTheLight

mewbie wrote: »

Well it does have the largest collection of nutters in the Western world.

I mean this is a fairly friendly way, so no need for it to be reported as Abuse leading to subsequent PPR. It is a joke, not particularly venemous. It does not mean I am stalking the poster and trying to undermine them or score points of them at every turn. It is part and parcel of the bull v bear debate, and questioning the sanity of the opposing camp is hopefully permissible.

Still a post with no poignant point.
What was the point?

I one sentence attack and then a paragraph of begging for mercy.

IveSeenTheLight

malkie76 wrote: »

Thing about Aberdeen(shire) is the oil industry. Be interesting to see what the property prices are like if (when?) the oil runs out.

I'm guessing Stewart Milne will be in trouble, but he's had an excellent run out of it.

There is more to Aberdeen than just oil.
Regarding the oil industry however, Aberdeen serves the world in that industry. If and when oil runs out, it will be felt worldwide

mewbie_2

IveSeenTheLight wrote: »

Still a post with no poignant point.
What was the point?

I one sentence attack and then a paragraph of begging for mercy.

Ah my favourite subject...me.

What was the point. To make a funny comment.

The paragraph of 'begging for mercy' was a light hearted reflection on the trouble we have had with Ad especially being banned. There was a point behind it.

Shall I do the one where I pretend a mod has edited my post? You like that one.

IveSeenTheLight

mewbie wrote: »

Ah my favourite subject...me.

What was the point. To make a funny comment.

The paragraph of 'begging for mercy' was a light hearted reflection on the trouble we have had with Ad especially being banned. There was a point behind it.

Shall I do the one where I pretend a mod has edited my post? You like that one.

I guess humour is also a personal preference.
Sorry, I don't see the humour in saying "Well it does have the largest collection of nutters in the Western world."
Seems more of a statement

I did (note past tense) like the edited mod joke.
Once you've heard it a couple or hundred times it does get a bit repetative

donaldtramp

IveSeenTheLight wrote: »

There is more to Aberdeen than just oil.
Regarding the oil industry however, Aberdeen serves the world in that industry. If and when oil runs out, it will be felt worldwide

I'd dispute that there is more to Aberdeen than the Oil. I don't see it.
I see no other viable industry in the NE that can carry the size of population up here.

When North Sea Oil runs out, it will massively affect Aberdeen.
Hey, but don't get me wrong, I'm enjoying it just now and riding it like everyone else;)

I've read all these figures recently in the papers about prices going up in Aberdeen.
But on reading the ASPC analysis of them,

http://www.aspc.co.uk/Documents/HousePrices-2009Q2.pdf

Look at the number of actual sales....they've fell off a cliff.
I'm wary of any propaganda put out by the council of mortgage lenders.

I'veseenthelight, I'm also a landlord up here so I have a vested interest in prices! I'm just trying to see the big picture. As Oil production tapers off, I want to be able to cut and run at the right time. It's a long, long time away but mortgages are usually for 25 years!


Things are going to get interesting up here for the next wee while.
http://www.pressandjournal.co.uk/Article.aspx/1234911?UserKey=

oil giant’s new boss looks poised to wield the axe

Aberdeen braces for Shell shock over jobs



By Ian Forsyth business editor
Published: 27/05/2009
More than 2,000 Scottish employees of Shell are bracing for job losses as the oil giant’s new chief executive makes his mark by cutting costs.......