Property & Construction Daily

The Property & Construction Daily provides a sector-specific comment from leading analyst Alastair Stewart. His daily perspective provides a round-up of market statements, news, economics and views from the property and construction sectors.

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July 14, 2023

Mortgage rates flattening out after BoE hike | Fortnight ahead | GFRD

Company news

Galliford Try Holdings (GFRD, 203p, £213m mkt cap)

UK construction and infrastructure services group. Contract. Galliford’s Building business has been appointed by St Martin’s Property Investments to undertake the £72m remodelling and refurbishment of Adelaide House in central London. The works consist of the remodelling of the nine-storey, Grade II-listed building, adjacent to London Bridge to a Category A office standard, as well as reconfiguration and enhancement works to external areas including the roof and riverside gardens.

Economic data

Mortgage rates. Rightmove’s latest weekly mortgage rate tracker indicates a relative flattening-off in five-year fixed rate loans of 90% LTVs and below (see below). Average rates for the 90% product rose by only 1 bp to 5.81%, following a 13 bps rise the week before; 85% LTV rates edged up by 4 bps to %.69% after a preceding 15 bps rise. The riskier 95% mortgage, however, rose by 10 bps to 6.10%. Rightmove has recently started tracking minimum as well as average rates: for 90% and 85% loans, the lowest available rate (on equivalent terms) is 32 bps below the averages; for 95%, it is 27bps.

Viewpoint: This suggests the latest 0.5% Base Rate rise has been absorbed by the market, at least for 90% and below and that market is still competitive.

Average Mortgage Rates

Fortnight ahead

Alastair Stewart B&C daily fortnight ahead
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