Mortgage lending at three month low

Bank of England statistics have shown that loans to homebuyers fell to a three month low in August, with approvals falling from 66,100 in July to 64,212. Matthew Pointon, property economist at Capital Economics, said the “rapid deceleration” is due to expensive house prices. The Bank of England has pointed to the introduction of the Mortgage Market Review - which tightened lending criteria - as a cause. However, data from the National Association of Estate Agents shows the number of first time buyers has increased for the first time since April this year. Its survey indicates that 28% of sales were to first time buyers in August. Meanwhile, the Bank of England is preparing to deliver its verdict on Thursday as to whether new powers are needed to guard against risks building up in the housing market following the introduction of the Help to Buy mortgage guarantee scheme

Amberfield land

RICS has suggested that an “amberfield” land classification should be introduced in the UK. Local authorities would be required to set a quota for such land, which they would then be required to build on within five years, under the proposals. The institution believes that the change would boost housing supply and development opportunities.

Yes vote could create mortgage drought

The Guardian reports that borrowers in Scotland face a mortgage drought if next week's referendum backs a split from the rest of the UK. It says that major lenders are thought to be preparing to restrict lending in the event of a Yes vote amid concerns over the currency that an independent Scotland would use and the outlook for house prices. One industry insider tells the paper that there have been signs that the market for homes worth more than £600,000 in Scotland is drying up in the run-up to the vote, while in the commercial property arena deals are being put on hold until the vote was known – and could be abandoned in the event of a Yes vote. Elsewhere, the Daily Telegraph cites a Which? report that found Scotland to have a larger burden of mortgage debt than England and fewer citizens who fully own their homes, and reveals that a surge in customers contacting finance firms over Yes vote fears has been registered.

Scottish uncertainty stalls market

The Daily Telegraph speaks to Strutt & Parker partner Robert McCulloch on the Scottish property market stalling pre-referendum. "I would be surprised if any agent does any business in September. Ordinarily it is the most active period for us; we log a lot of sales. But the market is very, very cautious. There are so many uncertainties. It is difficult for any potential purchaser to know what to believe…. The fact is no market thrives on uncertainty,” says Mr McCulloch. Separately, the Daily Mail reports on the same subject, quoting Mark Coulter of Coulters estate agents who says: “Since August we've been getting noticeably far less calls and enquiries. You could have a flood of properties for sale as people jump ship to move to England.” Finally, the FT looks at the referendum’s effect on Scotland’s commercial property market. The paper notes that investors are moving hundreds of millions of pounds out of Scotland and adding “exit clauses” into commercial contracts to allow buyers to alter or scrap deals altogether if a Yes vote is registered.

Office-to-residential exemptions to be scrapped

The Government has revealed plans to extend its office-to-residential conversion policy by scrapping the exemptions some councils had from the scheme from 2016 onwards. However, the FT reports that according to the latest figures the amount of available office space across the UK is falling at a record rate due partly to the policy's introduction in May 2013. Figures from Colliers show that 800,000 sq. ft. of office space has been lost in Westminster alone since the policy was introduced, while a further 1.8m sq. ft. of offices in the borough are awaiting conversion to homes. Paul Smith of Colliers said that the policy is adding pressure on an office supply pipeline that is already struggling to keep up with demand.

Just like magic

Over 50 builders, engineers and craftsmen have created a 40-foot building out of a polystyrene called Filcor. The building will float over 10ft in the air as part of an art exhibition in Covent Garden.