House sales peak in July as energy bills set to rise by 80% from 1 October
House sales peak in July as energy bills set to rise by 80% in October
UK regulator, OFCOM, has hiked the energy cap which means average UK household energy bills are set to rise by up to 80% from 1 October.
The Government has announced that all households in England, Scotland and Wales will receive £400 to help with rising fuel bills this autumn. The payment will appear as a credit on your energy bill. Landlords who include utility bills in houses in multiple occupation will still be eligible for these payments.
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The increased outgoings could also affect how much you will be able borrow to buy your home.
Here are some changes to mortgage affordability calculations made by lenders that you need to be aware of if you are applying for a mortgage home loan in the UK.
Recent changes mean lenders will add another layer to mortgage affordability checks used to calculate how much they can lend to borrowers. In future, they will not just look at your income but will also take into account at all of your outgoings, which means you may not be able to borrow as much as you need.
Lenders are expected to amend the rules for benefit claimants to allow them to have their benefit payments assessed as part of the mortgage application.
House sales peak in July HMRC figures show but buyers are cautious
Following the recent Halifax report, official figures show that more homes were sold in the UK in July than in any other month this year, but agents report that buyers are showing more caution.
Due to cost-of-living pressures and lower mortgage advances, buyers are increasingly negotiating for a lower price.
HM Revenue and Customs data showed that 110,970 properties were sold in the UK during the month – the highest since September.
Consistent monthly sales of around 100,000 this year show that demand remains comparatively strong, but there are signs that the squeeze on budgets caused by rising prices and bills were having an effect.
Sales in July were still 33% higher than the same month last year and 7.2% higher than June, HMRC said.
Nathan Emerson, chief executive of the estate agents’ trade body Propertymark, told the BBC: “These figures show the housing market remains stable with transactions up month-on-month, year-on-year and well above pre-pandemic levels.
“The cost of living is still rising and we are seeing evidence of buyers negotiating harder, bringing price increases down. But our data from member agents shows the demand remains strong and that there with not enough stock to go round with the number of new potential buyers seven times higher than new homes coming to the market.”
US President Joe Biden is cancelling billions of dollars of federal student loans.
Mr Biden has just announced he will cancel up to $10,000 (£8,500) in federal student loans for millions of Americans who earn less than $125,000 each year. The cost is expected to exceed $300 billion and further add to the multi-trillion dollar US debt mountain.
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