| Barratt Developments PLC (GB0000811801) | |||
4,82 GBXStand (close): 04.10.24 |
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| 11.10.24 05:00:07 | Monthly mortgage payments surged by over £350 in past five years |  |
| The average monthly mortgage repayment has reached £931, some £350 more than just five years ago, leaving homeowners under the pressure of rising costs. Figures from property site Rightmove (RMV.L) showed that the average monthly mortgage payment for first-time buyers has surged to £931, up £353 from £578 five years ago, although it remains over £150 cheaper than the peak recorded in July 2023. These calculations assume a 20% deposit and a 30-year mortgage on homes with two bedrooms or fewer. Current average fixed mortgage rates stand at 4.58%, a significant rise from 2.13% in 2019, translating to a 61% increase in payments over the past five years. Meanwhile, the average cost of a first-time buyer home has risen 18% to £227,570, compared to £192,221 in 2019. Amid high borrowing costs, first-time buyers are delaying their purchases. The average age of first-time buyers has climbed to 33 from 32, with the average mortgage term extending to 31 years, up from 29, according to UK Finance data. Read more: UK households 'struggling' as mortgage defaults jump The figures also revealed significant regional disparities. In London, a starter home now costs nearly five times the average annual salary of a two-person household, making it difficult for buyers to secure loans. In the North West, monthly mortgage payments have surged by 75%, while asking prices have risen by 29%. Yorkshire & The Humber has also seen a 74% rise in payments, contrasted with only a 25% increase in average wages — marking the largest gap in the country. Current borrowing criteria, which cap loans at 4.5 times a combined income with a stress test rate of around 9%, aim to prevent buyers from overextending themselves. While lenders are exploring ways to assist first-time buyers within this regulatory framework, a broader review of affordability criteria could provide a significant boost, according to Rightmove. Read more: Best UK mortgage deals of the week, 10 October Matt Smith, Rightmove’s mortgage expert, said: “Market regulation has successfully prevented overstretching, but many first-time buyers find themselves priced out due to stringent borrowing limits and rising mortgage rates. The regional analysis underscores multiple obstacles, compounded by payments that outpace wage growth.” Tim Bannister, Rightmove’s property expert, added that while market conditions have improved since last year, high mortgage rates continue to impact affordability. Many first-time buyers are now opting for longer loan terms and exploring less expensive areas to enter the housing market. Download the Yahoo Finance app, available for Apple and Android. |
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| 08.10.24 12:55:35 | More than £1bn wiped off housebuilder Vistry's value after profit warning | |
| Vistry (VTY.L) shares plummeted on Tuesday morning on the back of a profit warning issued after it discovered costs in one division of its business had been understated. Shares were down more than 30% earlier in the trading session, taking more than £1bn off the company's market capitalisation. The stock had recovered some ground by midday but was still down more than 24%, with a market capitalisation of £3.2bn ($4.19bn). The stock was the worst performer on the FTSE 100 (^FTSE) index on Tuesday, weighing on the blue-chip index, which was down 1% in early afternoon trading. Vistry said in a trading update on Tuesday that it had discovered that cost projections to complete nine of its 46 developments in its south division had been "understated" by around 10% of the total build costs. To put this into context, Vistry said the group as a whole has around 300 developments on its books. As a result, the housebuilder estimated a "one-off impact" for revising development cost assumptions and now expected adjusted profits before tax for the 2024 fiscal year to be around £80m lower than previous forecast, at £350m. Vistry then expected adjusted pre-tax profits to be around £30m lower in 2025 and £5m down in 2026. "We believe the issues are confined to the South Division and changes to the management team in the division are underway," Vistry said. "We are commencing an independent review to fully ascertain the causes." Despite the impact of this discovery, Vistry said it continued to expect to deliver more than 18,000 units in total completions in its 2024 full-year. The company also said it continued to target a net position by 31 December, having reported net debt of £88.8m at the end of last year. In addition, Vistry said it remained committed to the £130m share buyback programme it announced at the beginning of September. Read more: UK house prices rise for third straight month amid falling mortgage rates The company also maintained medium-term targets of generating £800m in adjusted operating profit and returning £1bn in capital distributions to shareholders. Vistry said it is scheduled to publish another trading update on 8 November. Russ Mould, investment director at AJ Bell, said: “Vistry had been quietly eking out a strong reputation with the market over recent years but today’s news has done a lot of damage to its credibility with investors. “The scale of the understatement of build costs in its South division is jaw-dropping and it’s not a surprise to see that changes in the management of that division are underway." Story continues He said that Vistry reaffirming its commitment to the £130m share buyback and target a net cash position this year were "clear attempts to reassure shareholders". “However, this issue is going to affect profit across the next three years and the reputational issues may even last beyond that," Mould added. Who is Vistry? The sharp fall in shares on Tuesday marked a reverse in fortunes for the stock which had become a favourite in the housebuilding sector more recently, particularly on the back of Labour's landslide general election victory in July. Vistry announced in September last year that was pivoting its business to a partnerships model, continuing its focus on affordable housing and working with developers to build homes in the public sector for long-term investors. This focus meant Vistry has looked set to benefit from housebuilding policies and planning reforms. Read more: Four in 10 full-time workers priced out of homeownership Greg Fitzgerald, CEO of Vistry, said in results released last month that it had delivered "strong half year performance with Vistry’s partnerships model significantly outperforming the traditional housebuilding market". Vistry reported a 9% increase in completions in the first half of the year, at 7,792 units, compared with the same period in 2023. The company also posted 11% growth in revenues to £1.97bn and a 10% increase in operating profits at £227m. Investor optimism around the stock had made it one of the top performers in FTSE 100 year-to-date as of the end of August, but Tuesday's drop left it just 7% in the green over the year. Housing market performance Other housebuilders were also down slightly on Tuesday, with Taylor Wimpey (TW.L), Persimmon (PSN.L) and Bellway (BWY.L) trading around 2% lower, while Berkeley (BKG.L) and the newly formed Barratt Redrow (BTRW.L) were down more than 1%. That's despite data released on Monday showing continued recovery in sentiment in the property market. Read more: Chancellor Reeves urged to change fiscal rules in budget to unlock £57bn Latest data from Halifax showing that UK house prices climbed for a third month in a row in September, up 0.3% or £859. Year-on-year prices had surged 4.7%, which was the strongest growth seen since November 2022. The typical property price stands at £293,399, slightly up from £292,540 in August, and represents the highest level since June 2022. Download the Yahoo Finance app, available for Apple and Android. |
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| 07.10.24 14:25:00 | Form 8.3 - Britvic plc | |
| LONDON, October 07, 2024--(BUSINESS WIRE)-- FORM 8.3 PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE Rule 8.3 of the Takeover Code (the "Code") 1.KEY INFORMATION (a)Full name of discloser: Millennium International Management LP (b)Owner or controller of interests and short positions disclosed, if different from 1(a): The naming of nominee or vehicle companies is insufficient. For a trust, the trustee(s), settlor and beneficiaries must be named. (c)Name of offeror/offeree in relation to whose relevant securities this form relates: Use a separate form for each offeror/offeree Britvic plc (d)If an exempt fund manager connected with an offeror/offeree, state this and specify identity of offeror/offeree: (e)Date position held/dealing undertaken: For an opening position disclosure, state the latest practicable date prior to the disclosure 4th October 2024 (f)In addition to the company in 1(c) above, is the discloser making disclosures in respect of any other party to the offer? If it is a cash offer or possible cash offer, state "N/A" No 2.POSITIONS OF THE PERSON MAKING THE DISCLOSURE If there are positions or rights to subscribe to disclose in more than one class of relevant securities of the offeror or offeree named in 1(c), copy table 2(a) or (b) (as appropriate) for each additional class of relevant security. (a)Interests and short positions in the relevant securities of the offeror or offeree to which the disclosure relates following the dealing (if any) Class of relevant security: 20p ordinary (GB00B0N8QD54) Interests Short positions Number % Number % (1)Relevant securities owned and/or controlled: - - - - (2)Cash-settled derivatives: 7,242,569 2.910% - - (3)Stock-settled derivatives (including options) and agreements to purchase/sell: - - - - TOTAL: 7,242,569 2.910% - - All interests and all short positions should be disclosed. Details of any open stock-settled derivative positions (including traded options), or agreements to purchase or sell relevant securities, should be given on a Supplemental Form 8 (Open Positions). (b)Rights to subscribe for new securities (including directors’ and other employee options) Class of relevant security in relation to which subscription right exists: Details, including nature of the rights concerned and relevant percentages: 3.DEALINGS (IF ANY) BY THE PERSON MAKING THE DISCLOSURE Where there have been dealings in more than one class of relevant securities of the offeror or offeree named in 1(c), copy table 3(a), (b), (c) or (d) (as appropriate) for each additional class of relevant security dealt in. The currency of all prices and other monetary amounts should be stated. (a)Purchases and sales Class of relevant security Purchase/sale Number of securities Price per unit (GBP) (b)Cash-settled derivative transactions Class of relevant security Product description e.g. CFD Nature of dealing e.g. opening/closing a long/short position, increasing/reducing a long/short position Number of reference securities Price per unit GB00B0N8QD54 Equity Swap Reducing a long Position 37 12.76 GBP GB00B0N8QD54 Equity Swap Reducing a long Position 432 12.76 GBP GB00B0N8QD54 Equity Swap Reducing a long Position 350 12.74 GBP GB00B0N8QD54 Equity Swap Reducing a long Position 3,905 12.76 GBP GB00B0N8QD54 Equity Swap Reducing a long Position 5,151 12.76 GBP (c)Stock-settled derivative transactions (including options) (i)Writing, selling, purchasing or varying Class of relevant security Product description e.g. call option Writing, purchasing, selling, varying etc. Number of securities to which option relates Exercise price per unit Type e.g. American, European etc. Expiry date Option money paid/ received per unit (ii)Exercise Class of relevant security Product description e.g. call option Exercising/ exercised against Number of securities Exercise price per unit (d)Other dealings (including subscribing for new securities) Class of relevant security Nature of dealing e.g. subscription, conversion Details Price per unit (if applicable) 4.OTHER INFORMATION (a)Indemnity and other dealing arrangements Details of any indemnity or option arrangement, or any agreement or understanding, formal or informal, relating to relevant securities which may be an inducement to deal or refrain from dealing entered into by the person making the disclosure and any party to the offer or any person acting in concert with a party to the offer: Irrevocable commitments and letters of intent should not be included. If there are no such agreements, arrangements or understandings, state "none" NONE (b)Agreements, arrangements or understandings relating to options or derivatives Details of any agreement, arrangement or understanding, formal or informal, between the person making the disclosure and any other person relating to: (i)the voting rights of any relevant securities under any option; or (ii)the voting rights or future acquisition or disposal of any relevant securities to which any derivative is referenced: If there are no such agreements, arrangements or understandings, state "none" NONE (c)Attachments Is a Supplemental Form 8 (Open Positions) attached? NO Date of disclosure: 7th October 2024 Contact name: Stephen Glasper Telephone number: +44 203 398 2166 Public disclosures under Rule 8 of the Code must be made to a Regulatory Information Service and must also be emailed to the Takeover Panel at monitoring@disclosure.org.uk. The Panel’s Market Surveillance Unit is available for consultation in relation to the Code’s disclosure requirements on +44 (0)20 7638 0129. The Code can be viewed on the Panel’s website at www.thetakeoverpanel.org.uk. View source version on businesswire.com: https://www.businesswire.com/news/home/20241007575019/en/ Contacts Millennium Partners, L.P. View comments |
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| 07.10.24 07:07:09 | UK house prices rise for third straight month amid falling mortgage rates | |
| UK house prices have climbed for the third consecutive month in September, rising by 0.3% or £859, as falling mortgages rates boosted the property market. According to Halifax, year-on-year, prices have surged by 4.7%, marking the strongest growth rate since November 2022. The typical property price stands at £293,399, slightly up from £292,540 in August, and represents the highest level since June 2022. This left the average price only a little short of the record high of £293,507 set in June 2022, on Halifax’s index, before the market started to slide in autumn 2022 after the mini-budget pushed up mortgage rates. For first-time buyers, the average amount paid is approximately £1,000 lower than it was two years ago, highlighting a shift in market dynamics. Amanda Bryden, head of Mortgages at Halifax, said: "UK house prices climbed for the third month in a row in September, with a slight increase of £859 in cash terms. The annual growth rate has edged up to 4.7%, bringing the average property price close to the record high of £293,507 set in June 2022." Read more: Four in 10 full-time workers priced out of homeownership Bryden said these gains had to be viewed in context: "While the typical property value has risen by around £13,000 over the past year, this increase primarily represents a recovery of losses from the previous year. Over the last two years, prices have only risen by a modest 0.4% (£1,202)." The housing market has shown signs of improvement through the summer and into early autumn. Enhanced mortgage affordability, driven by strong wage growth and declining interest rates, has bolstered confidence among prospective buyers. The number of mortgages agreed upon has surged over 40% in the past year, reaching its highest level since July 2022. "While improved mortgage affordability is likely to support buyer activity — especially with anticipated further cuts to interest rates — housing costs remain a significant challenge for many. As a result, we expect property price growth to remain modest for the remainder of this year and into next," Bryden added. Northern Ireland has emerged as the standout performer in the UK property market, recording an annual growth of 9.7% in September. The average price of a home in the region stands at £203,593, an increase that makes it the strongest property price growth of any nation or region in the UK In Wales, the property market is also recording increasing demand, with prices rising by 4.4% year-on-year. The average home in Wales is now valued at £224,119. Story continues Read more: 9 village homes that'll make you want to escape to the country Scotland has recorded a more modest increase in house prices. The typical property costs £205,718, up 2.1% from the previous year. In England, the North West has claimed the title for the highest growth, with house prices climbing by 5.1% over the last year, bringing the average price to £234,355. Meanwhile, London continues to command the highest property prices in the UK, with the average home now priced at £539,238, a 2.6% increase from last year. However, this figure remains below the capital’s peak of £552,592 reached in August 2022. Nathan Emerson, CEO at Propertymark, said: “It is very welcome news to see yet further growth in the housing market and taking a wide-angle view of the year, there is no doubt consumers are now able to approach the buying and selling process with a far greater degree of confidence compared to the very start of the year. “There is still further progress to be made, but with strong hints we may see further dips in the base rate before the year is out, we are seeing some lenders already confident enough to switch up their mortgage offerings which is proving very welcome news for borrows.” Download the Yahoo Finance app, available for Apple and Android. |
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| 07.10.24 06:02:06 | 3 UK Stocks Estimated To Be Trading At Up To 42.1% Below Intrinsic Value |  |
| The United Kingdom's FTSE 100 index has recently faced challenges, closing lower amid weak trade data from China and concerns about the global economic recovery. In this environment, identifying undervalued stocks becomes crucial as investors seek opportunities that may offer potential value despite broader market pressures. Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom Name Current Price Fair Value (Est) Discount (Est) GlobalData (AIM:DATA) £2.00 £3.72 46.2% JD Sports Fashion (LSE:JD.) £1.3865 £2.75 49.7% Tracsis (AIM:TRCS) £5.35 £9.97 46.3% Redcentric (AIM:RCN) £1.3075 £2.43 46.1% Videndum (LSE:VID) £2.54 £4.60 44.8% Foxtons Group (LSE:FOXT) £0.63 £1.20 47.4% SysGroup (AIM:SYS) £0.33 £0.65 49.2% Hochschild Mining (LSE:HOC) £1.89 £3.56 46.9% BATM Advanced Communications (LSE:BVC) £0.1985 £0.37 46.1% Genel Energy (LSE:GENL) £0.772 £1.50 48.4% Click here to see the full list of 58 stocks from our Undervalued UK Stocks Based On Cash Flows screener. Below we spotlight a couple of our favorites from our exclusive screener. Babcock International Group Overview: Babcock International Group PLC is involved in the design, development, manufacture, and integration of specialist systems for aerospace, defense, and security across various regions including the UK and internationally, with a market cap of £2.42 billion. Operations: The company's revenue is derived from four main segments: Land (£1.10 billion), Marine (£1.43 billion), Nuclear (£1.52 billion), and Aviation (£341.50 million). Estimated Discount To Fair Value: 30% Babcock International Group is trading at approximately 30% below its estimated fair value of £6.88 per share, making it highly undervalued based on discounted cash flow analysis. Despite a high debt level, the company has returned to profitability with net income reaching £165.7 million for FY24. Earnings are forecast to grow annually by 15.3%, outpacing the UK market average, while revenue growth remains modest at 4% per year. Our growth report here indicates Babcock International Group may be poised for an improving outlook. Click here and access our complete balance sheet health report to understand the dynamics of Babcock International Group. LSE:BAB Discounted Cash Flow as at Oct 2024 Barratt Developments Overview: Barratt Developments plc operates in the housebuilding industry within the United Kingdom and has a market capitalization of approximately £6.96 billion. Operations: The company generates revenue primarily from its housebuilding segment, which amounts to £4.17 billion. Estimated Discount To Fair Value: 34.6% Barratt Developments is trading 34.6% below its estimated fair value of £7.37, highlighting its undervaluation based on discounted cash flow analysis. Despite a challenging year with sales dropping to £4.17 billion from £5.32 billion and net income falling to £114.1 million, earnings are projected to grow significantly at 44.5% annually, surpassing UK market averages. However, dividends have been reduced due to lower earnings coverage and recent shareholder dilution remains a concern. Story continues The analysis detailed in our Barratt Developments growth report hints at robust future financial performance. Get an in-depth perspective on Barratt Developments' balance sheet by reading our health report here. LSE:BDEV Discounted Cash Flow as at Oct 2024 Moonpig Group Overview: Moonpig Group PLC operates as an online retailer of greeting cards and gifts in the Netherlands and the United Kingdom, with a market cap of £739.82 million. Operations: The company's revenue is primarily derived from its Moonpig segment at £241.33 million, followed by Greetz at £51.24 million, and Experiences contributing £48.58 million. Estimated Discount To Fair Value: 42.1% Moonpig Group is trading 42.1% below its estimated fair value of £3.71, indicating significant undervaluation based on discounted cash flow analysis. While revenue growth is modest at 7.5% annually, earnings are projected to increase by 18.55%, outpacing the UK market average of 14.2%. Despite a high level of debt, Moonpig's return on equity is forecast to reach a very high level in three years, enhancing its investment appeal amidst financial challenges. Our comprehensive growth report raises the possibility that Moonpig Group is poised for substantial financial growth. Navigate through the intricacies of Moonpig Group with our comprehensive financial health report here. LSE:MOON Discounted Cash Flow as at Oct 2024 Make It Happen Click here to access our complete index of 58 Undervalued UK Stocks Based On Cash Flows. Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive. Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets. Searching for a Fresh Perspective? Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include LSE:BAB LSE:BDEV and LSE:MOON. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com View comments |
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| 03.10.24 05:00:36 | UK's fastest selling property market revealed | |
| A place where it only takes around two weeks to sell your house might seem like a fantasy but that is exactly what is happening in the small town of Carluke, Scotland, where sellers are finding a buyer in an average of 15 days. That makes the town in Lanarkshire the fastest selling market this year across Great Britain, with an average asking price of £170,468, according to property platform Rightmove (RMV.L). Following closely behind, Giffnock in Glasgow sees properties finding buyers within an average of 16 days, while nearby Uddingston takes 17 days. Both towns benefit from their proximity to central Glasgow, making them attractive options for commuters. In comparison, the average time to find a buyer across the UK is 60 days. All 10 of the quickest-selling locations are situated in Scotland, with sellers enjoying faster sales than they did a year ago. The average time to find a buyer in Scotland has risen slightly to 33 days, compared to 32 days in 2022, solidifying its status as the quickest market in the country. In contrast, the East Midlands languishes at the bottom, with an average of 67 days to secure a buyer. Read more: When will mortgages get cheaper and is offsetting the answer? Nine of the 10 slowest markets are coastal towns, including Brixham in Devon and Minehead in Somerset. In London, the fastest-selling markets are found further from the city centre. Walthamstow, Stoke Newington, and Dagenham are currently leading the pack, driven by well-connected transport links and relatively affordable prices. On the other hand, premium central locations such as Knightsbridge, Chelsea, and Victoria are experiencing longer sales times, with Knightsbridge slowing by 24 days compared to last year to an average 135 days — a trend likely influenced by its high price point and a limited pool of mass market buyers. It takes an average of 108 days to sell a property in Chelsea and 100 days for homes in Victoria to find a buyer. Across Great Britain, terraced houses are selling at the quickest rate at an average 51 days, while detached homes are taking the longest, averaging 73 days. Read more: UK property deals surge as banks approve most mortgages since 2022 Tim Bannister, property expert at Rightmove, said: “Carluke has once again secured the title of the fastest market in Great Britain, showcasing the enduring speed of sales in this part of Scotland. "The popularity of Giffnock and Uddingston indicates a strong demand for accessible yet spacious living. "Meanwhile, in London, commuter areas like Walthamstow and Dagenham lead in sales speed, contrasting sharply with the slower-moving luxury markets of Knightsbridge and Chelsea, which operate at a different pace altogether.” Download the Yahoo Finance app, available for Apple and Android. |
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| 26.09.24 05:00:57 | Best UK mortgage deals of the week | |
| More deals under 4% are coming on to the market, as the Bank of England's (BoE) decided to keep interest rates on hold, with another mortgage war looming that is set to benefit those trying to get on the property ladder. The average rate on a two-year fixed deal this week stood at 5.28%, lower than last week's 5.74%, while average rates for a five-year deal came in at 4.84%, also lower than the previous 5.24%, according to figures from Uswitch. The Bank of England has kept interest rates at 5% but investors predict two cuts will happen before the end of the year, with the first expected to take place in November. Inflation has also remained unchanged at 2.2.% in August, in good news for mortgage holders. Alice Haine, personal finance expert at Bestinvest, said: “For homeowners and first-time buyers, stable inflation combined with slightly more competitive mortgage rates means affordability levels are improving for those shopping around for a new home as their money can stretch that little bit further." Mortgage rates could fall to 3.5% by the end of the year as markets are betting on two more interest rate cuts by the end of the year. Barclays has launched a range of new mortgage products, including a new lowest home loan rate on the market, just 24 hours after Nationwide released the first sub-3.75% deal. Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “No sooner does one lender offer a sub-3.75% five-year fix, then another joins the fray, with Barclays launching a market-leading 3.71%. “The clear direction of traffic for mortgage rates is downwards, with lenders gently easing pricing as they compete for business." Mortgage lenders' attempts to lure in first-time buyers have stepped up with the UK's biggest building society allowing some to borrow more. Nationwide said that from now on, new borrowers could request a mortgage up to six times their income with a 5% deposit. But it would only be available for those taking out a five- or 10-year fixed-rate deal. Sarah Coles, personal finance columnist at Yahoo Finance UK and head of personal finance at Hargreaves Lansdown, said: "Fixed rate deals are on their way down, because the cuts expected later this year are already priced into these products." "It’s one reason why mortgage approvals have risen, and buyers are returning to the market — because the feel-good factor injected into property by the first Bank of England rate cut is backed by slightly more affordable mortgages," she added. "The prospect of a remortgage isn’t looking quite so hideous either now." Story continues HSBC mortgage rates HSBC (HSBA.L) has a 3.82% rate for a five-year deal. This is unchanged from last week, and for those that have a Premier Standard account with the lender this rate has come down to 3.79%. Looking at the two-year options, the lowest rate comes in at 4.14% with a £999 fee, which is also unchanged Both cases assume a 60% loan to value (LTV) mortgage, meaning buyers need to have at least 40% for a deposit. Read more: What is seller fatigue and how can it impact you when buying or selling property? HSBC offers 95% LTV deals, meaning you only need to save for a 5% deposit. The rates are much higher, however, with a two-year fix coming in at 5.75% or 5.19% for a five-year fix. This is because the rate someone can get will be determined by their financial situation and the size of their deposit. The larger the deposit, the lower the LTV, allowing buyers to access better deals because lenders consider them less risky. “The significant aspect of HSBC’s offer is the combination of a low rate and a manageable fee, making this deal highly attractive,” said Nick Mendes of John Charcol brokers. NatWest mortgage rates NatWest (NWG.L) is offering 3.77% for a five-year deal with a £1,495 fee, as the bank removed its market-leading 3.71% offer. Read more: Top tips to invest in a property and the features that sell a home For a two-year fix, the cheapest deal comes in at 4.05%, also unchanged from the previous week. In both cases, you'll need at least a 40% deposit to qualify for the rates. Santander mortgage rates At Santander (BNC.L) a five-year fix comes in at 3.80% with a £999 fee, assuming you have a 40% deposit — which is the same as last week's deal. For a two-year deal, the cheapest customers can get is 3.99% with the same £999 fee, which is also unchanged. This is currently the only one of two sub-4% deal available on the market for a two-year fix. Barclays mortgage rates Barclays (BARC.L) has launched a market leading 3.71% five-year deal for prospective homebuyers with a 40% deposit (60% LTV). When it comes to two-year mortgage deals, the lowest you can get is 4.22%. Nationwide mortgage rates Nationwide (NBS.L) is offering a five-year fix at 3.74%, which comes with a £999 fee and requires a 40% deposit. This is lower than the 3.99% rate it had offered last week. Read more: From square footage to décor, here's how estate agents decide how much your home is worth Nationwide offers a two-year fixed rate for home purchase at 3.89% with a £999 fee — also for borrowers with a 40% deposit. Halifax mortgage rates Halifax, the UK’s biggest mortgage lender, offers a two-year fixed rate of 4.12%, with a £999 fee for first-time buyers, which hasn't changed from last week. The lender, owned by Lloyds (LLOY.L) has a five-year rate going for 3.80% (also 60% LTV), which is lower than the previous week's 3.81%. It also offers a 10-year deal with a mortgage rate of 4.93%, which hasn't moved from last week’s offers. Cheapest mortgage deal on the market With mortgages below 4% back on the market, prospective homeowners are starting to have some choice when it comes to finding a good deal. Barclays currently has the cheapest deal on the market. However, its 3.71% offer requires a 40% deposit, so you will need a hefty amount of cash upfront to secure the deal. Nationwide is close behind, with a 3.74% deal for a five-year fix. Read more: Which first-time home buyer scheme is right for me? Given the average UK house price sits at £292,505, a 40% deposit equates to about £117,000. Borrowers would need to spread their home loans over more than 70 years to afford the same mortgages on offer just two years ago, banks have said. There is also a new mortgage product promising to help first-time buyers get on the property ladder with just a £5,000 deposit. Yorkshire Building Society is offering a deal that enables first-time buyers across England, Scotland and Wales with a £5,000 deposit to purchase a property valued at up to £500,000. This means first-time buyers could get on the ladder with as little as a 1% deposit. Also, lender April Mortgages is now offering buyers the chance to borrow up to six times their income on loans fixed for five to 15 years, from a deposit of 5%. Both those buying alone and those buying with others can apply for the mortgage. The company, which is part of an independent Dutch asset manager DMFCO has interest rates starting at 5.20%, with an application fee of £195. Skipton Building Society has also said it will allow first-time buyers to borrow up to five-and-a-half times their income, in an effort to support more borrowers on to the housing ladder. Will mortgage rates go down in 2024? Mortgage holders and debt borrowers have been forced to pay record-high repayments in recent years due to the UK's hiked base rate being passed onto customers by banks and building societies. Until now, the consensus was that interest rates have peaked and that 2024 will see rate cuts as inflation eases. Read more: What you need to know before buying a second home However, even with inflation close to the BoE's target of 2%, traders are now pricing in just two more rate cuts, compared to expectations of five cuts at the start of 2024. Matt Smith, Rightmove’s mortgage expert, said: “While those looking to take out a mortgage soon shouldn’t expect to see drastically lower mortgage rates, we would expect the downward trend we’ve started to see continue." He said that once there are "further reductions to the base rate, people should really start to see the impact. However, it’s important to keep in mind that mortgage rates are widely expected to eventually settle at higher levels than previously, with the market view that the base rate may eventually fall to about 3.25%." About 1.6 million existing borrowers have relatively cheap fixed-rate deals expiring this year. Download the Yahoo Finance app, available for Apple and Android. |
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| 21.09.24 08:53:01 | Barratt Developments' (LON:BDEV) Dividend Will Be £0.118 | |
| The board of Barratt Developments plc (LON:BDEV) has announced that it will pay a dividend of £0.118 per share on the 1st of November. This means that the annual payment is 3.2% of the current stock price, which is lower than what the rest of the industry is paying. View our latest analysis for Barratt Developments Barratt Developments' Projected Earnings Seem Likely To Cover Future Distributions Even a low dividend yield can be attractive if it is sustained for years on end. Prior to this announcement, the company was paying out 138% of what it was earning. It will be difficult to sustain this level of payout so we wouldn't be confident about this continuing. According to analysts, EPS should be several times higher next year. If recent patterns in the dividend continue, we could see the payout ratio reaching 69% which is fairly sustainable. historic-dividend Dividend Volatility Although the company has a long dividend history, it has been cut at least once in the last 10 years. The annual payment during the last 10 years was £0.025 in 2014, and the most recent fiscal year payment was £0.162. This means that it has been growing its distributions at 21% per annum over that time. Dividends have grown rapidly over this time, but with cuts in the past we are not certain that this stock will be a reliable source of income in the future. Dividend Growth Potential Is Shaky Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. Barratt Developments' EPS has fallen by approximately 36% per year during the past five years. This steep decline can indicate that the business is going through a tough time, which could constrain its ability to pay a larger dividend each year in the future. However, the next year is actually looking up, with earnings set to rise. We would just wait until it becomes a pattern before getting too excited. We should note that Barratt Developments has issued stock equal to 49% of shares outstanding. Trying to grow the dividend when issuing new shares reminds us of the ancient Greek tale of Sisyphus - perpetually pushing a boulder uphill. Companies that consistently issue new shares are often suboptimal from a dividend perspective. We're Not Big Fans Of Barratt Developments' Dividend To sum up, we don't like when dividends are cut, but in this case the dividend may have been too high to begin with. The company seems to be stretching itself a bit to make such big payments, but it doesn't appear they can be consistent over time. Considering all of these factors, we wouldn't rely on this dividend if we wanted to live on the income. Story continues Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. However, there are other things to consider for investors when analysing stock performance. For example, we've identified 4 warning signs for Barratt Developments (1 doesn't sit too well with us!) that you should be aware of before investing. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View comments |
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| 19.09.24 12:21:17 | What the Bank of England’s interest rate decision means for your mortgage | |
| The Bank of England's decision to hold interest rates at 5% was anticipated by many, yet it remains a blow to mortgage holders dealing with high borrowing costs. For homeowners with variable or tracker rate mortgages, the Bank’s decision means monthly payments will stay the same, offering a temporary reprieve from the uncertainty of potential future rate hikes. However, those with fixed-rate mortgages are likely to experience the lingering effects of past rate increases when they remortgage, as lenders incorporate current economic conditions and the Bank’s policies into their offers. Alice Haine, personal finance expert at Bestinvest, said: “The decision to keep interest rates on hold may unsettle households, especially as they navigate a tight budget. While easing inflation and last month's rate cut have provided some relief from high borrowing costs, they have not entirely resolved the affordability issues faced by existing homeowners and prospective buyers.” About 1.6 million existing borrowers have relatively cheap fixed-rate deals expiring this year. Read more: Bank of England holds interest rate at 5% Haine also noted that while some better mortgage rates are available, new buyers must be strategic to keep monthly repayments manageable. This might involve seeking larger deposits from family or opting for longer mortgage terms — 30, 35, or even 40 years — instead of the traditional 25-year term. For those on tracker mortgages, relief may only come after the next Monetary Policy Committee (MPC) meeting. Meanwhile, borrowers with fixed-rate deals secured before the Bank of England's tightening cycle began will face significant repayment increases as their deals expire. Matt Smith, mortgage expert at Rightmove, said: “We still expect two rate cuts before the end of the year, which should lead to a downward trend in mortgage rates by Christmas. However, the response from lenders may be moderate, as their funding costs are unlikely to decrease substantially, limiting the extent of rate cuts.” Despite today's setback, experts anticipate some relief for mortgage holders. Laura Suter, director of personal finance at AJ Bell, predicted: “Interest rates are expected to end the year at 4.5%, with two successive cuts before Christmas. This could ignite further activity in the housing market, which has already seen a pickup since last month’s cut. Potential buyers may also delay their purchases, hoping for even lower rates later in the year.” Ryan McGrath, director of second charge mortgages at Pepper Money, expressed hope that the Bank's decision will encourage lenders to lower rates ahead of an anticipated November cut. “This rate hold may be the catalyst lenders need to adjust their rates, providing more options and stock in the market for potential buyers.” Story continues Read more: Best UK mortgage deals of the week Guy Gittens, chief executive of Foxtons group, said that since the interest rate cut in August — the first in four years — there has been an increase in buyers entering the market after strengthened mortgage approval numbers. "While rates have been held today, this improving market momentum is only likely to strengthen further, as mortgage rates continue to trend downwards, putting the property market in very good stead for the remainder of the year," he said. Savings and Credit Cards In light of the Bank of England’s decision, Liz Edwards, a money expert at Finder.com, has advised savers to lock in the best available rates. “Today’s decision, while disappointing for borrowers, serves as a reminder for savers to take advantage of higher rates on fixed-rate accounts,” Edwards said. Finder’s research revealed that eight of the 16 largest UK banks have already reduced rates on easy-access savings accounts since the Bank’s base rate cut earlier this month. Mark Hicks, head of active savings at Hargreaves Lansdown, echoed this sentiment: “The decision to keep rates steady is positive for savers. Had a rate cut occurred, we would have seen a swift follow-through from other banks and building societies.” Read more: What we're expecting to see in the autumn budget For credit card holders, changes in the base rate can affect interest charges if their card’s rate is linked to it. Cardholders should receive a 30-day notice prior to any rate increases. The cost of securing new credit has risen compared to a year ago due to higher rates. Data from Moneyfacts shows that the average credit card interest rate for September 2024 is 35.5%. While personal loan and car financing rates are typically fixed, borrowers should verify their terms with lenders. Download the Yahoo Finance app, available for Apple and Android. |
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| 18.09.24 10:08:57 | UK rental prices rise four times higher than inflation | |
| UK private rents climbed at a near-record rate to 8.4% in the year to August, with London leading the surge, according to official figures. The increase in private rents is almost four times that of inflation, which rose 2.2% in August, figures from the Office for National Statistics (ONS) showed. In August, the average private rent in Great Britain was £1,286 per month. This is £100 (8.4%) higher than 12 months previously. Average rents increased to £1,327 in England — an increase of 8.5% — £752 (8.5%) in Wales, and £969 (7.6%) in Scotland, in the 12 months to August 2024. In Northern Ireland, average rents increased by 9.9% in the 12 months to June 2024. In England, rent inflation was highest in London at 9.6% and lowest in the South West at 6.4%. Read more: UK inflation rate holds steady at 2.2% ahead of interest rate decision The average rent was highest in London at £2,129 and lowest in the North East at £682. ONS head of housing market indices Aimee North said: "Rental prices continue to climb at a near-record rate, although the pace of the increase has slowed slightly. London again saw the fastest growth in rents, with the slowest rise in the South West of England." Nathan Emerson, CEO at Propertymark, said:“The rental market continues to operate with a very strong headwind, as many landlords battle increased overheads and uncertainty regarding future legislation. Landlords have faced a complex combination of high inflation, interest rates, maintenance costs and a more demanding taxation structure over the last few years. "In turn, this has had a profound impact on their ability to operate and in some circumstances has forced good landlords to make the difficult choice to sell up and leave the sector." Last month, the highest average rent was in Kensington and Chelsea, London at £3,418 and lowest in Dumfries and Galloway in Scotland at £483. Excluding London, the local area with the highest average rent in August 2024 was Elmbridge in the South East at £1,822. Meanwhile, average UK house prices increased by 2.2% to £290,000, which was down from 2.7% in the 12 months to June 2024. It is also the fifth monthly rise in annual house price inflation in a row. Read more: Average UK house price rises as interest rate cut boosts market The ONS reported that average house prices increased in England to £306,000 — a rise of 1.6% in the last year. In Wales house prices rose by 2% to £218,000, and in Scotland they were up 6% to £199,000. The North East was the English region with the highest house price inflation in the 12 months to July 2024, at 3.8%. Story continues "Annual house price growth slowed this month. The North East saw the highest annual growth while London was the only region to show annual price falls," said North. Nick Leeming, chairman of Jackson-Stops, said: “For the first time, house prices are reflecting a cautiously positive afterglow from Labour’s election victory and showing a promising picture for the start of Autumn. Post-election stability coupled with the first base rate cut in four years — which has steadied mortgage rates — have renewed buyers’ intent and underpinned stronger house price growth. “Buyers’ confidence will always, to varying extents, be influenced by the wider economic picture. It is essential the new government introduces polices to address the supply and demand imbalance, but at a rational rate. The market needs consistency and certainty, not knee-jerk reactions and short-term solutions.” Download the Yahoo Finance app, available for Apple and Android. |
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