UK Property Market Sparks Buyer Confidence, New RMBS Deal
A new wave of optimism among first-time homebuyers reflects a deeper confidence in the UK residential property space as a new residential mortgage-backed security (RMBS) deal is set to hit the UK securitization market. Around 65% of first-time homebuyers in the UK believe now is a good time to buy, adding to a general sense of urgency to take advantage of the current strong property market, according to a quarterly survey of 35,000 respondents conducted by UK property database Rightmove. Less than 10% of respondents to Rightmove's consumer confidence survey indicated now would be a bad time to buy. More than 80% of first-time homebuyers believed prices would not fall any further in the next 12 months. The response highlights "a new sense of optimism" among new buyers, Rightmove said. “Now could be a good window of opportunity for first-time buyers if they can get a decent deposit together," said Miles Shipside, Rightmove's commercial director. "The market appears to have bottomed out and there are still bargains out there. However, this increased number of market newcomers comes at a time when property choice is limited, with new stock coming onto the market in the 10 months of 2009 down by a third on the same period last year.” The majority of Rightmove's respondents also expected prices to increase over the next 12 months, while only 10% expect prices to fall. Confidence in UK's strengthening property market also comes in the form of a new RMBS deal by UK mortgage lender Nationwide, one of the few new issuers since the onset of the financial crisis. Nationwide's Silverstone 09-1 will include a fixed-rate seven-year tranche, according to analyst reports out of Europe. The bonds to be offered through the deal are longer-dated than typical issuance, indicating a move toward targeting longer-term investors. Write to Diana Golobay.