2012-01-31 15:30:14 - New Financial Services research report from Datamonitor is now available from Fast Market Research

The downturn continues to have an adverse effect on the UK mortgage market. The ability of providers to significantly expand lending remains constrained, and poor consumer confidence has restricted demand. Nevertheless, some sectors, such as buy-to-let and high value loans, are set to outperform the market over the next few years.

Scope
* Combines all Datamonitor's mortgage research conducted in 2011 into one document.
* Provides market sizing data, market shares, key trends, and detailed analysis of the buy-to-let and high value loans sectors.
* Includes detailed qualitative opinion and quantitative forecasts of the UK mortgage market for the next five years.


Full Report Details at
- www.fastmr.com/prod/329223_uk_mortgages_2011.aspx


Report Highlights

Gross advances across the market will decline

in 2012 to GBP127bn before recovering to GBP182bn by 2015.

Buy-to-let gross advances grew by 22% in 2010 to reach GBP10.4bn, and are forecast to reach GBP22.0bn by 2015, exhibiting a much faster rate of growth than the mortgage market as whole. Buy-to-let's share of lending rose from a low of 5.4% in 2009 Q3 to 10.4% in 2011 Q2, and will rise further in response to growing consumer demand.

Lloyds Banking Group saw the largest decrease in its share of gross lending while Barclays Group saw the largest increase, helped by its purchase of Standard Life's mortgage arm. Yorkshire Building Society also saw a large increase in its gross lending, driven by some competitive offers.

Reasons to Get this Report

* What issues are going to hold back the mortgage market in coming years?
* Why have some lenders been markedly more successful at growing their mortgage business than others?
* What factors will drive the expansion in buy-to-let and high value lending over the next few years?

Companies Mentioned in this Report: Bank of England, Barclays PLC, CMS Energy Corporation, Coventry Building Society, Hutchison 3G UK Limited, ING GROEP N.V., Kensington Group plc, Lloyds Banking Group plc, Macquarie Group Limited, Metro International S.A., Nationwide Building Society, Parcelforce Worldwide, Royal Bank of Scotland Group PLC, Royal KPN N.V., Schindler Holding Ltd., Skipton Building Society, The Governor and Company of the Bank of Ireland, Yorkshire Building Society

Partial Table of Contents:

OVERVIEW
- Catalyst
- Summary
UK MORTGAGE MARKET IN 2011 AND FUTURE OUTLOOK
- Datamonitor forecasts a lean market for gross lending over the next five years
- Gross lending will rise to just GBP182bn by 2015
- Under the optimistic scenario, gross lending will reach GBP220bn in 2015
- The pessimistic forecast sees gross lending falling to GBP131bn by 2015
- Business activity was sluggish throughout 2010
- Gross lending in 2010 did not improve on the levels seen in 2009
- The fragile state of the UK economy has held back consumer demand for mortgages
- Remortgaging levels remained depressed throughout 2010
- Mortgage interest rates barely shifted in 2010
- House purchase activity appears to have bottomed out
- Credit availability has stabilized, but not yet begun to recover
- The post-crash recovery in house prices ended in early 2010
- Arrears and possessions declined in 2010
- Uncertainty surrounded progress on the Mortgage Market Review in 2010
- Prospects for growth in 2011 are subdued
- Mortgage lending got off to a slow start in 2011
- Datamonitor expects the base rate to end the year at 1%
- House prices are likely to remain flat at best in 2011
- Funding issues will become more pressing as the year progresses
- Poor availability of high LTV mortgages will continue to hinder first-time buyers
- Arrears and possessions may rise slightly in 2011
- Buy-to-let is the only major sector of the market that will see significant growth in 2011
FIRST-TIME BUYER OPPORTUNITIES
- First-time buyers remain a risky proposition for lenders but they provide some opportunities
- The first-time buyer market remains subdued and is continuing to struggle in the current environment
- A large proportion of 18-34 year olds require help with their deposit
- Older mortgage holders are more likely to pay the standard variable rate on their mortgage
- Consumers in the youngest age bands present the greatest repayment risk for financial institutions
- Nevertheless, there are opportunities for first-time buyers as mortgage affordability has reached a 12-year high
- There are regional discrepancies, with those in the north requiring a smaller deposit
- Market share discrepancies illustrate that some lenders are making more of an effort to target young buyers
- Lenders are introducing accounts to help first-time buyers, but they remain underserved
- Lenders are offering 95% mortgages but they are few and far between
- Lenders are offering borrowers the chance to increase their deposit with outside help
- Regulation is altering the landscape for first-time buyers
- A report by the Independent Commission on Banking may result in a small increase in mortgage rates
- The DP11 consultation is considering a more intrusive and pre-emptive approach
- The government's new FirstBuy Direct scheme may further exacerbate the problem
- Tougher affordability requirements are likely to impede lending to first-time buyers
- The first-time buyer population will find conditions difficult over the next few years
- First-time buyers are likely to fall as a proportion of the overall mortgage market
- Growth in shared equity and shared ownership will be aided by innovation
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Full Table of Contents is available at:
-- www.fastmr.com/catalog/product.aspx?productid=329223&dt=t

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