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Towns & Cities Facing Mortgage Meltdown As HALF The UK Is Now Paying More Than £1,000/Month, Putting Thousands At Risk Of Losing Homes

Mortgages have more than doubled in some parts of the UK since 2020, putting millions of homeowners at risk of being priced out of their own home.

New analysis has revealed how, in the space of just three years, half the country has gone from paying less than £1,000-a-month on their mortgage to more than £1,000-a-month – a change fuelled by rising house prices and soaring interest rates.

Repayments have more than doubled for places in the south of England like Cornwall, where the average monthly mortgage bill has shot up from £565.38 in July 2020 to £1,142.36 in July this year.

Parts of Wales and Scotland have also seen sharp rises in the last three years, with prices in the Vale of Glamorgan increasing from £553.59 to £1121.39, while payments in East Lothian have increased from £582.69 to an eyewatering £1276.30 per month.

Elliot Taylor, director of Taylor Chartered Surveyors, told MailOnline that current mortgage prices are the worst he has seen in recent years.

Today’s average two-year fixed deal of 6.83 per cent is three times the average rate for the same two-year deal in July 2020, according to Moneyfactscompare.co.uk.

The collosal rise follows the disastrous Kwasi Kwarteng mini-budget during the short-lived Liz Truss government.

Rishi Sunak’s administration is now considering plans to offer more 40-year fixed term mortgages for first-time buyers unable to afford short-term fixed-rate deals.

HOW TO USE THE MAP: Press ‘play’ button on top right to flip between 2020 and 2023. Scroll around the maps to see the average mortgage price in each area.

A graph showing the average rates for a 2 year and 5 year fixed mortgage since January 2021
A graph showing the average rates for a 2 year and 5 year fixed mortgage since January 2021

The latest analysis from Nous, revealed that there are now only three areas in London, the South East and the South West where a family could afford their own front door for less than £1,000 a month.

Based on the latest average house prices and mortgage rates with a typical 75% LTV ratio, the mortgage on a house in Plymouth would cost £990.53, the mortgage on a house in Gloucester would cost £941.18, and the mortgage on a house in the Forest of Dean would cost £993.17 per month.

In all other local authority areas in these regions, a mortgage on a house would cost more than £1,000 a month.

In the most expensive area in Britain, Kensington and Chelsea, the average mortgage on a house would cost almost £12,000 a month.

In July 2020, there were 61 local authority areas in Great Britain where the average monthly mortgage payment on a house would be more than £1,000, compared to 204 today. The increase has been driven by rising house prices and soaring interest rates.

According to the Bank of England, the interest rate on a typical 2-year 75% LTV mortgage rate was 5.5% in the month to 30 June 2023. In the month to 30 June 2020 the typical interest rate for the same mortgage was 1.41%.

Greg Marsh, CEO and founder Nous said: ‘The combination of soaring interest rates and prices pushed up by the pandemic-era race for space has hammered families’ ability to afford their own front door.

‘Across the whole of the South of England, it’s now all but impossible to buy a house with a mortgage of less than £1,000 a month.

‘All this is happening while prices of everyday essentials are still soaring and energy bills are almost twice as expensive as they were two years ago, causing acute hardship for millions of households.

Plymouth is one a few places in the south west of England where monthly mortgage prices have stayed below £1,000
Plymouth is one a few places in the south west of England where monthly mortgage prices have stayed below £1,000
In the most expensive area in Britain, Kensington and Chelsea (pictured), the average mortgage on a house would cost more than £11,000 a month
In the most expensive area in Britain, Kensington and Chelsea (pictured), the average mortgage on a house would cost more than £11,000 a month

‘My advice is to get your finances in order and save where you can.’

Earlier this week the treasury reportedly held talks with MPs, the Bank of England and lenders offering 40-year deals, which offer one interest rate for the entirety of the loan, as part of a new plan to help more people get on the property ladder.

The longer term deals are likely to be cheaper than shorter ones and can be easier for first-time buyers to obtain while helping to protect against any future interest rate hikes.

Discussions have been held over regulatory changes that could help more firms offer the deal, including lowering capital requirements and easing loan-to-income limits.

Currently the average two-year fixed rate is 6.83 per cent, according to Moneyfacts, and the average rate for a five-year loan is 6.34 per cent.

Mortgage rates have soared over the past two months as disappointing inflation data increased the chance of further Bank of England base rate rises.

As a result, swap rates – the bank borrowing rates which reveal where the financial markets think fixed-rate mortgage prices will be in two and five years’ time – have been rising.

However, better-than-expected inflation data from June put some confidence back in the market and swaps are now falling with some high street lenders including HSBC and Nationwide reducing the rates on their fixed mortgages.

The news offers a glimmer of hope for homeowners, who have been struggling with the mortgage shock when coming off lower fixed rates.

Elliot Taylor, director of Taylor Chartered Surveyors, told MailOnline that current mortgage prices are the worst he has seen in recent years. , based in London, is optimistic that rates will continue to fall over the next few months but highlighted how volatile the market can be.

He said current mortgage prices for those looking to buy a house are the worst he has ever seen in recent years following a sudden increase in the past few months.

He said: ‘There is a feeling of nervousness with people looking to buy a new house due to the fluctuating house prices and there are definitely less people moving as a result.’

‘It is impossible to say whether we are at a low point in the market. But there is a feeling that house prices will recover.’

He is uncertain when mortgage prices will stabilise but said: ‘We won’t be going back to mortgage rates of one or two percent, rather rates between three and four percent will likely become the new normal.

‘People will make sacrifices to live in the property they want to live in rather than spending money when going out.’

However, cutting back on everday costs is becoming increasingly challenging for people amid the current cost of living crisis and soaring energy bills.

This is certainly the case in one seaside town in Wales where the cost of housing has led to people becoming financially overstretched and are now spending less on their local highstreets.

Penarth is a well-heeled Victorian town on the Vale of Glamorgan coastline, which has a 22,000-strong population, many working in the Welsh capital of Cardiff just a few miles away.

The town has a 22,000-strong population, many of which commute to the capital for work
The town has a 22,000-strong population, many of which commute to the capital for work
The cost of housing in Penarth has led to some people living there becoming financially overstretched
The cost of housing in Penarth has led to some people living there becoming financially overstretched

Carer Tracey Davies, 53, who works in the town said: ‘I think it is ridiculously expensive here. People are over-stretching themselves all the time and there will be a price to pay.

‘Shops are closing in the main street. Every time you look around you see another shop has gone – Shaws the Drapers, M and Co, all sorts are going. That is because people haven’t got enough money to spend because of the cost of housing.

‘You see house prices going up around here all the time because it is desirable place to live. I agree but there is no point in crippling yourself.’

Nurse Sue Burge, 63, said: ‘Yes Penarth is a lovely place to live but people are being driven away by the high prices.

‘I have four children who would love to return to the town to live but only one can afford it.’

She added that people moving out of London in pursuit of a more rural setting are beating out locals for new properties which has caused further increases in house prices.

Sue said: ‘We noticed a lot of people from London are moving here. It is all about quality of life – they can work from home and are still only a couple of hours away from London on the train.

‘That is driving up prices from local people around here. It is a lot cheaper to live in Cardiff then here.’

Sue’s daughter Zowie, 41, a business owner, lives just a few miles away in Cardiff, where house prices are much cheaper. She is keen to move back to the seaside town but can’t yet afford it.

She said: ‘I would love to come back here to live but it is just so expensive these days. Once you move out it is very hard to come back.

‘Getting a mortgage when you have your own business can be very difficult too because there is so much paperwork. I live in Cardiff but love coming back to visit my family.

‘Yes there are a lot of people from London moving around here, some second homes and some just few a better life balance. It is cheap compared to London but it is not worth overstretching yourself.’

Carer Tracey Davies, 53, who works in the town, thinks house prices are 'ridiculously expensive'

Carer Tracey Davies, 53, who works in the town, thinks house prices are ‘ridiculously expensive’

Nurse Sue Burge, 63, has four children that all want to move back to the town but only one of them is able to afford it
Nurse Sue Burge, 63, has four children that all want to move back to the town but only one of them is able to afford it
Sue's daughter Zowie, 41, a business owner, lives just a few miles away in Cardiff, where house prices are much cheaper
Sue’s daughter Zowie, 41, a business owner, lives just a few miles away in Cardiff, where house prices are much cheaper
Zowie said that it is very hard to move back to Penarth after she moved out and added that getting a mortgage as a business owner can be a lengthy process
Zowie said that it is very hard to move back to Penarth after she moved out and added that getting a mortgage as a business owner can be a lengthy process
She added that many people from London have bought properties in the area either to use as a second home or move away from the city
She added that many people from London have bought properties in the area either to use as a second home or move away from the city

Kai Logan, Group Marketing DIrector at Bradleys Estate Agents, which operates across Cornwall, Devon and Somerset, has noticed more people are selling their homes across the region.

He said: ‘With a greater choice for home movers to choose from, there is a greater chance of seeing a property of interest which will inspire more sellers to in turn, market their home.

‘This is however, in line with a typical housing market following the drought of properties in the wake of the pandemic.

‘Buyers registering with us over recent weeks has also increased showing there is still a healthy demand for properties in Somerset, Devon and Cornwall.

The average monthly mortgage price in Cornwall has increased by 2.02% since July 2020, but other areas in the south west have seen worse rises.

For people living in the South Hams, a local government district along the south coast of Devon, prices soared from £687.82 in 2020 to £1507.21 this year. North Devon has also a 2.05% increase, with prices going from £541.75 to £1111.63.

Kai said: ‘Buyers should be getting an agreement from a mortgage lender on their affordability so they can shop the range of properties being marketed with confidence.

‘We are seeing transaction timescales slowly reduce where lenders, local authorities and other third parties involved in the conveyancing process are getting on top of their workloads and so moving forward there is optimism for the West Country property market.’


Culture

Assessing Property Size: What Square Footage Can You Get With The Average UK House Price In Your Area?

Assessing Property Size In The UK

In the United Kingdom, there is a prevailing tendency to gauge the size of residences based on the number of bedrooms rather than square footage. In fact, research indicates that three out of five individuals are unaware of the square footage of their property.

However, a comprehensive analysis conducted by Savills reveals significant variations in property sizes throughout the country. For instance, with the average property price standing at £340,837, this amount would typically afford a studio flat spanning 551 square feet in London, according to the prominent estate agency.

Conversely, in the North East region, the same sum would secure a spacious five-bedroom house measuring 1,955 square feet, nearly four times the size of a comparable property in London.

Best value: Heading to the North East of England is where buyers will get the most from their money

In Scotland, the median house price equates to a sizable investment capable of procuring a generous four-bedroom residence spanning 1,743 square feet. Conversely, in Wales, Yorkshire & The Humber, and the North West, this sum affords a slightly smaller four-bedroom dwelling of approximately 1,500 square feet, while in the East and West Midlands, it accommodates a 1,300 square foot home. In stark contrast, within the South West, £340,837 secures a modest 1,000 square foot property, and in the East, an even more confined 928 square feet.

London presents the most challenging market, where this budget offers the least purchasing power. Following closely, the South East allows for 825 square feet of space or a medium-sized two-bedroom dwelling. Lucian Cook, head of residential research at Savills, emphasizes the profound disparity in purchasing potential across Britain, ranging from compact studio flats in London to spacious four or five-bedroom residences in parts of North East England.

While square footage serves as a critical metric, with a significant portion of Britons unfamiliar with their property’s dimensions, the number of bedrooms remains a traditional indicator of size. Personal preferences, such as a preference for larger kitchens, may influence property selection. For those prioritizing ample space, Easington, County Durham, offers a substantial 2,858 square foot, five-bedroom home, while Rhondda, Wales, and Na h-Eileanan an Iar, Scotland, provide 2,625 and 2,551 square feet, respectively. Conversely, in St Albans, Hertfordshire, £340,837 secures a mere 547 square feet, equivalent to a one-bedroom flat.

The disparity continues in central London, where purchasing power diminishes considerably. In Kensington, the budget accommodates a mere 220 square feet, contrasting with the slightly more spacious 236 square feet in Westminster. Conversely, in Dagenham, the same investment translates to 770 square feet. Three properties currently listed on Rightmove exemplify the diversity within this price range across the UK market.

South of the river: This semi-detached house is located near to three different train stations

South of the river: This semi-detached house is located near to three different train stations

2. Lewisham: One-bed house, £345,000

This one-bedroom property in Lewisham, South London, is on the market for £345,000.

The semi-detached house is set over two floors, and has a private patio.

The property is located near to bus links and amenities, as well as Catford train station.

Edinburgh fringe: This three-bed property is located on the edge of the city, near to the town of Musselburgh

Edinburgh fringe: This three-bed property is located on the edge of the city, near to the town of Musselburgh

3. Edinburgh: Three-bed house, £350,000

This three-bedroom detached house in Edinburgh could be yours for £350,000.

The house, which has a two-car driveway, boasts a large kitchen diner, and is within easy reach of Newcriaghall train station.


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Culture

Top 10 Florida Cities Dominate The Business Startup Landscape In The U.S.

Top 10 Florida Cities And Business Startup Landscape In The U.S.

The Voice Of EU | Florida emerges as a hub for entrepreneurial endeavors, with its vibrant business landscape and conducive environment for startups. Renowned for its low corporate tax rates and a high concentration of investors, the Sunshine State beckons aspiring entrepreneurs seeking fertile grounds to launch and grow their businesses.

In a recent report by WalletHub, Florida cities dominate the list of the top 10 best destinations for business startups, showcasing their resilience and economic vitality amidst challenging times.

From Orlando’s thriving market to Miami’s dynamic ecosystem, each city offers unique advantages and opportunities for entrepreneurial success. Let’s delve into the chronologically listed cities that exemplify Florida’s prominence in the business startup arena.

1. Orlando Leads the Way: Orlando emerges as the most attractive market in the U.S. for business startups, with a remarkable surge in small business establishments. WalletHub’s latest report highlights Orlando’s robust ecosystem, fostering the survival and growth of startups, buoyed by a high concentration of investors per capita.

2. Tampa Takes Second Place: Securing the second spot among large cities for business startups, Tampa boasts a favorable business environment attributed to its low corporate tax rates. The city’s ample investor presence further fortifies startups, providing essential resources for navigating the initial years of business operations.

3. Charlotte’s Diverse Industries: Claiming the third position, Charlotte stands out for its diverse industrial landscape and exceptionally low corporate taxes, enticing companies to reinvest capital. This conducive environment propels entrepreneurial endeavors, contributing to sustained economic growth.

4. Jacksonville’s Rising Profile: Jacksonville emerges as a promising destination for startups, bolstered by its favorable business climate. The city’s strategic positioning fosters entrepreneurial ventures, attracting aspiring business owners seeking growth opportunities.

5. Miami’s Entrepreneurial Hub: Miami solidifies its position as a thriving entrepreneurial hub, attracting businesses with its dynamic ecosystem and strategic location. The city’s vibrant startup culture and supportive infrastructure make it an appealing destination for ventures of all sizes.

6. Atlanta’s Economic Momentum: Atlanta’s ascent in the business startup landscape underscores its economic momentum and favorable business conditions. The city’s strategic advantages and conducive policies provide a fertile ground for entrepreneurial ventures to flourish.

7. Fort Worth’s Business-Friendly Environment: Fort Worth emerges as a prime destination for startups, offering a business-friendly environment characterized by low corporate taxes. The city’s supportive ecosystem and strategic initiatives facilitate the growth and success of new ventures.

8. Austin’s Innovation Hub: Austin cements its status as an innovation hub, attracting startups with its vibrant entrepreneurial community and progressive policies. The city’s robust infrastructure and access to capital foster a conducive environment for business growth and innovation.

9. Durham’s Emerging Entrepreneurship Scene: Durham’s burgeoning entrepreneurship scene positions it as a promising destination for startups, fueled by its supportive ecosystem and strategic initiatives. The city’s collaborative culture and access to resources contribute to the success of new ventures.

10. St. Petersburg’s Thriving Business Community: St. Petersburg rounds off the top 10 with its thriving business community and supportive ecosystem for startups. The city’s strategic advantages and favorable business climate make it an attractive destination for entrepreneurial endeavors.

Despite unprecedented challenges posed by the COVID-19 pandemic, the Great Resignation, and high inflation, these top Florida cities remain resilient and well-equipped to overcome obstacles, offering promising opportunities for business owners and entrepreneurs alike.


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European Startup Ecosystems Awash With Gulf Investment – Here Are Some Of The Top Investors

European Startup Ecosystem Getting Flooded With Gulf Investments

The Voice Of EU | In recent years, European entrepreneurs seeking capital infusion have widened their horizons beyond the traditional American investors, increasingly turning their gaze towards the lucrative investment landscape of the Gulf region. With substantial capital reservoirs nestled within sovereign wealth funds and corporate venture capital entities, Gulf nations have emerged as compelling investors for European startups and scaleups.

According to comprehensive data from Dealroom, the influx of investment from Gulf countries into European startups soared to a staggering $3 billion in 2023, marking a remarkable 5x surge from the $627 million recorded in 2018.

This substantial injection of capital, accounting for approximately 5% of the total funding raised in the region, underscores the growing prominence of Gulf investors in European markets.

Particularly noteworthy is the significant support extended to growth-stage companies, with over two-thirds of Gulf investments in 2023 being directed towards funding rounds exceeding $100 million. This influx of capital provides a welcome boost to European companies grappling with the challenge of securing well-capitalized investors locally.

Delving deeper into the landscape, Sifted has identified the most active Gulf investors in European startups over the past two years.

Leading the pack is Aramco Ventures, headquartered in Dhahran, Saudi Arabia. Bolstered by a substantial commitment, Aramco Ventures boasts a $1.5 billion sustainability fund, alongside an additional $4 billion allocated to its venture capital arm, positioning it as a formidable player with a total investment capacity of $7 billion by 2027. With a notable presence in 17 funding rounds, Aramco Ventures has strategically invested in ventures such as Carbon Clean Solutions and ANYbotics, aligning with its focus on businesses that offer strategic value.

Following closely is Mubadala Capital, headquartered in Abu Dhabi, UAE, with an impressive tally of 13 investments in European startups over the past two years. Backed by the sovereign wealth fund Mubadala Investment Company, Mubadala Capital’s diverse investment portfolio spans private equity, venture capital, and alternative solutions. Notable investments include Klarna, TIER, and Juni, reflecting its global investment strategy across various sectors.

Ventura Capital, based in Dubai, UAE, secured its position as a key player with nine investments in European startups. With a presence in Dubai, London, and Tokyo, Ventura Capital boasts an international network of limited partners and a sector-agnostic investment approach, contributing to its noteworthy investments in companies such as Coursera and Spotify.

Qatar Investment Authority, headquartered in Doha, Qatar, has made significant inroads into the European startup ecosystem with six notable investments. As the sovereign wealth fund of Qatar, QIA’s diversified portfolio spans private and public equity, infrastructure, and real estate, with strategic investments in tech startups across healthcare, consumer, and industrial sectors.

MetaVision Dubai, a newcomer to the scene, has swiftly garnered attention with six investments in European startups. Focusing on seed to Series A startups in the metaverse and Web3 space, MetaVision raised an undisclosed fund in 2022, affirming its commitment to emerging technologies and innovative ventures.

Investcorp, headquartered in Manama, Bahrain, has solidified its presence with six investments in European startups. With a focus on mid-sized B2B businesses, Investcorp’s diverse investment strategies encompass private equity, real estate, infrastructure, and credit management, contributing to its notable investments in companies such as Terra Quantum and TruKKer.

Chimera Capital, based in Abu Dhabi, UAE, rounds off the list with four strategic investments in European startups. As part of a prominent business conglomerate, Chimera Capital leverages its global reach and sector-agnostic approach to drive investments in ventures such as CMR Surgical and Neat Burger.

In conclusion, the burgeoning influx of capital from Gulf investors into European startups underscores the region’s growing appeal as a vibrant hub for innovation and entrepreneurship. With key players such as Aramco Ventures, Mubadala Capital, and Ventura Capital leading the charge, European startups are poised to benefit from the strategic investments and partnerships forged with Gulf investors, propelling them towards sustained growth and success in the global market landscape.


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