UAE-based property company Metropolitan Group has been named the GCC’s best workplace for women in 2022, as companies in the region continue to focus on employee well-being, work-life balance and learning opportunities in the post-pandemic era, a survey by management consultancy Great Place to Work showed.
Recruitment consultancy Charterhouse, Dubai district cooling provider Empower, UAE insurance broker Howden Guardian Insurance and Saudi Arabia-based Elevation United Property Management round out the top five best workplaces for women in the GCC, the survey, released on Wednesday, found.
Other UAE companies on the list include fitness and leisure app scheme Privilee, Westford University in Sharjah, public relations company Hill+Knowlton Strategies, luxury retailer Chalhoub Group, Horizon International School, Sunset Hospitality and sustainable active wear brand The Giving Movement, among others, the survey revealed.
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“The top 30 Best Workplaces for Women in GCC is in line with our 2022 strategy of recognising organisations across the region that are working hard to close the gender gap and sustain a high trust, high performing culture for all employees,” Ibrahim Mougharbel, managing director of Great Place to Work UAE, said.
Since the Covid-19 pandemic began in 2020, employees and jobseekers have been increasingly requesting to work from home at least two days a week, in addition to asking for flexible hours and training opportunities, recruitment company Robert Half said in its 2022 salary guide.
Advertising, marketing and public relations attracts the most female talent in the UAE, a survey this month by UAE jobs portal Bayt and market research company YouGov found.
Women must be given more leadership roles to help the Middle East and North Africa close the second-widest gender gap in the world, according to a July report by the World Economic Forum.
Globally, countries will take another 132 years, compared with 136 in 2021, to close the gender gap, the WEF report said. In Mena, this figure stands at 115 years.
The survey on GCC’s best workplaces for women included companies in sectors such as logistics, technology, finance, social services and government agencies, media, retail, fashion, FMCG, hospitality, healthcare and manufacturing.
Companies based in the GCC that fall within these industries and employ 10 or more workers are eligible to participate in the survey, which aims to support closing the gender gap in the region.
Organisations are selected based on how well-represented women are in the workforce and throughout management, and assessed based on employee feedback and an audit of management and HR practices.
“Women today face a unique set of challenges both in and out of the workplace ranging from pay, fairness and empowerment,” said Tanzeel Rahman, managing director of Great Place to Work Saudi Arabia.
“The best workplaces on this list have created a greater sense of fairness, collaboration and professional development for female employees. These positive experiences empower them to bring their full potential to the workplace and the world.”
Meanwhile, UAE car-sharing platform ekar was ranked the best start-up to work for in the Emirates this year by professional network LinkedIn.
Dubai-based buy-now-pay-later (BNPL) company Postpay, Abu Dhabi agriculture technology start-up Pure Harvest Smart Farms, sustainable active wear brand The Giving Movement and e-commerce and supply chain company Right Farm complete the top five in the LinkedIn Top Start-ups List 2022.
Top 30 workplaces for women in the GCC in 2022
- Metropolitan Group
- Charterhouse
- Empower
- Howden Guardian Insurance
- Elevation United Property Management
- Beaconsmind
- Privilee
- Westford University
- Tajalla Creative Agency
- AlBahia Beauty Salon
- SEO Sherpa
- Hill + Knowlton Strategies
- Sunset Hospitality
- TAM
- Chalhoub Group
- Ash & Maple Management
- Aida Holding
- Deriv
- Maersk
- The Giving Movement
- Loccitane
- PBS
- Speakol
- Coberg Technologies
- Horizon International School
- Marc Ellis
- Robert Half International
- Servier
- GAC
- AlphaSights
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Watch: the law firm where few people ‘go to work’
Updated: September 28, 2022, 1:00 PM
Credit: Crown Copyright/Open Government Licence v3.0
The anti-corruption watchdog Acoba has admonished a former Home Office director general for failing to seek advice on a job that has seen him return to the department as a consultant.
Details of the breach by Glyn Williams, former DG for migration and borders, were revealed in correspondence released by the Advisory Committee on Business Appointments last week. During his time in government, he worked on several major immigration and borders reform projects, and led major technology-centric programmes, including overseeing the delivery of the EU Settlement Scheme.
Acoba chair Eric Pickles has written to Nadhim Zahawi, chancellor of the Duchy of Lancaster, to report Williams for an “unambiguous” breach of the rules. The former senior civil servant had not sought Acoba’s advice in relation to the work “which resulted in him working indirectly for the Home Office again.”
Anti-lobbying rules mean former ministers and senior civil servants must not take up, or announce, a new appointment or job within two years of leaving office before seeking Acoba’s advice.
Williams retired last December, becoming a senior consultant on immigration and borders for Fortinus Global a few months later. The firm, which is run by Tony Smith, an ex-Border Force director general, claims to offer public- and private-sector clients support in four key areas: the use of technology and digital platforms at border crossings; strategic border management; immigration and customs compliance; and related training needs.
The company recently won a consultancy contract to work to provide “a managed service” to the Home Office, including support and on immigration systems and related policy.
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In his letter, Lord Pickles said: “This lack of awareness of the rules by a senior civil servant is a cause for concern. It is now a matter for you to decide what appropriate action to take.”
The breach was brought to Acoba’s attention by Home Office permanent secretary Matthew Rycroft last month.
In a letter to Lord Pickles, he explained that although the Home Office had reminded Williams of the rules, the official subsequently received advice from HR “indicating that this would not be needed if he returned to the civil service under an arrangement as a part-time director general.”
Rycroft said Williams “has been supplying his expertise” to the department via the Fortinus managed service contract but “should have applied to the Home Office for us to submit to Acoba before he took up this post, as he was advised by us before he retired”.
“It is unfortunate that this has happened, and I would like to apologise to the committee,” the departmental leader said.
Rycroft added that despite the breach arising from “a misunderstanding of the advice Glyn received, we nevertheless appreciate the seriousness of the situation”.
Replying to Rycroft’s letter, Pickles noted that Fortinus Global started working for the Home Office after Williams joined.
“Any suspicion around this timing is exactly the kind of risk to the integrity of government that the rules are designed to protect,” he said.
In a statement to Acoba, Williams denied any impropriety.
“I did not think I was required to seek approval through Acoba and that was why I did not do so.”
Having since read the rules, he accepted he “should have sought approval” but insisted he “did not deliberately seek to avoid compliance”.
Pickles has expressed concern a number of times in recent months over breaches of the anti-lobbying rules. In May, after reporting an ex-official who had worked on the Grenfell Inquiry to the Cabinet Office for failing to contact Acoba about his plans to lead Greater Manchester Integrated Care Service, he called lack of awareness of the rules “a cause for concern”.
“Although breaches of the rules remain a very small proportion of the casework Acoba sees, they are most often caused by a lack of clarity on the various processes and obligations that exist,” he told Zahawi’s predecessor, Steve Barclay, in a letter about the breach.
“I therefore remain concerned that not all former ministers and crown servants are sufficiently clear on the various standards of behaviour, rules and legislation that are incumbent on them,” he added.
The committee recently penned an open letter to ministers preparing to leave government in prime minister Liz Truss’s reshuffle reminding them of the rules, “to ensure all ministers understand the process and know what is expected of them”.
Additional material from PublicTechnology staff
Following an options appraisal, owner Waterfront Southport Properties has decided to sell the 131-bedroom property as the town’s wider £75m regeneration kicks off.
CBRE was appointed earlier this year to explore redevelopment options for Southport’s Bliss Hotel.
Now, the consultancy has been instructed to find a buyer for the four-star property, located next to Sefton Council’s proposed Marine Lake Events Centre, which forms the backbone of the authority’s regeneration strategy.
The events centre, which features a 1,200-capacity auditorium, is expected to attract 515,000 annual visits and 60,000 additional hotel overnight stays, according to CBRE.
“The recently upscaled luxury boutique hotel is in a prime position to the progressing events centre and exciting waterfront development,” said Shaun Skidmore, senior director at CBRE Manchester.
“The area is primed to attract a host of economic benefits thanks to this significant multimillion-pound regeneration scheme.”
Bliss Hotel recently underwent a £15m refurbishment. The venue offers a lounge bar, restaurant, roof garden, gym, conferencing and events space, as well as underground parking for 120 cars.
The adjoining 50,000 sq ft leisure block is also up for sale and has the potential to be converted to expand the hotel.
Southampton-based Sillence Hurn Building Consultancy has welcomed new additions to the team as it continues to scale across the South East and London.
The company has grown threefold since it was founded in 2019 thanks to its rapidly expanding client base and a strong pipeline of work. It provides building surveying and project management solutions to commercial clients around the UK, working alongside landlords, occupiers, developers, lenders, and agents.
This month, Sillence Hurn welcomed Lisa Ashton (right), Business Development Executive and Harjit Johal (left), Building Surveyor. Both have worked within the property sector across the region.
Alex Hurn, Managing Director of Sillence Hurn, said: “Our biggest asset is our people. Thanks to their positive attitudes, dedication, and loyalty we continue to champion client experience and offer solutions at every stage of a client’s property lifecycle.
“From the day a client first engages with the brand to the day their project comes to fruition – we are there every step of the way, providing solutions and advice.
“Thanks to sustained and expected growth, we are continually recruiting in all areas of the business as we expand across the South East, London, and further afield. A big welcome to Lisa and Harjit who join the company at this exciting stage.”
Find out more about current opportunities with Sillence Hurn here.
Read more – Skills shortages and flexible working – how the construction industry is embracing change
A former head of planning at Urban Splash has set up independent consultancy Made it Together.
Andrew Johnston is a chartered town planner with 18 years’ experience in consultancy and developer roles. Before Urban Splash, he was a director at Avison Young and worked at Indigo Planning and DTZ, either side of a period working in planning in New Zealand.
Made it Together offers commercial town planning services with a focus on working collaboratively with clients, designers and communities.
Johnston said: “I’ve set up Made it Together to be open and collaborative. Working with good people for better outcomes. I want to be able give a leg up to others, in the same way so many have helped me.”
He added: “Over the years I have found that my most rewarding projects, and best results, have come when I have been seconded into clients. Fully immersed as part of the team, physically working alongside people, taking the time to understand what a place is about.
“Planning is very important, but is not just about that, you have to see the bigger picture too. I want to bring the same ethos to all the projects we work on at Made it Together.”
Johnston continues to work with Urban Splash, as well as with other developers, private sector clients and land promotors across the North West.
The growing prospect of 5 per cent or even 6 per cent mortgage interest rates in the UK means that so-called good debt could give your living standards a horribly bad squeeze.
Your mortgage debt is considered good because it is widely held to help make you richer — it builds equity in an asset that you expect to grow in value. When high-earners could borrow £500,000 at a cost of as little as £600 a month, we should not be surprised that they chose to stretch themselves.
But the same loan needing repayments surpassing £2,000 a month may not feel so good, especially when it comes alongside soaring energy bills.
The average new two-year fixed rate mortgage broke through 4 per cent in August for the first time since early 2013. Amid the turmoil in sterling and the surge in yields on British government bonds in the past few days, predictions of mortgage rates rising to 6 per cent are spooking borrowers. They’re scrambling for today’s fixed-rate deals, even as some lenders temporarily suspended some offerings.
Those with maturing two-year fixed-rate deals are finding that the overall average rate is 2 percentage points higher than when they secured their deal — equating to over £200 a month more on average, according to comparison website Moneyfacts.
Meanwhile, the price of new mortgages has been rising faster than UK interest rates. So, last week’s rise in the Bank of England’s main interest rate to 2.25 per cent, and likely further rises, could bring even sharper pain for the 40 per cent of borrowers with fixed-rate deals that are set to expire this year or next.
For ultra-cautious savings hoarders with cash in the bank that’s rapidly losing value to inflation, this is a good moment to make a mortgage down payment. It is, as they say, a no-brainer.
But should those fortunate enough to have securities portfolios or planning to start investing, cash in their holdings or scrap their plans — and pay down the mortgage instead?
Over the past 10 years, many investors felt confident that they could generate returns in excess of the cost of debt. But average mortgage rates are now several steps closer to long-term average returns from shares: in the past, about 7 per cent a year above inflation; in the next five to 10 years, it is likely to be lower.
One gloomy prophet, Stephen Clapham, founder of investor training consultancy Behind the Balance Sheet, told the audience at the recent FT Weekend Festival that it would be a good outcome over the next five years if they could beat inflation and not lose money on their investments.
Matt Conradi, head of client advisory at Netwealth Investments, told festival-goers it was less obvious that investors could beat their mortgage costs as rates rise and markets struggled to digest the impact of inflation.
“In the long run we feel more confident that investments will generate significantly better returns than the cost of a mortgage. However, in the short term with mortgage rates increasing and market uncertainty, if you are a higher-rate taxpayer, the balance of risks is shifting in favour of the certainty that paying down mortgage debt provides.”
If you nonetheless decide to favour the investment route, there are steps you can take to improve your returns.
First, don’t pass up your opportunity to have tax-protected growth in individual savings accounts (Isas) and pensions.
Isas supply tax-free income in retirement — and can give you the flexibility to retire or downscale work earlier than pensions. Your annual Isa allowance is £20,000 — and remember your spouse has one too.
With pensions, the tax relief on entry on top of ongoing tax-free growth can make a bigger impact, despite potentially paying tax on withdrawals.
If you use your full £40,000 annual pension contribution allowance and get higher-rate tax relief, it only costs you £24,000. That’s an instant uplift of 66 per cent on your investment. Where else can you possibly get this without taking excessive risks? Yes, it’s locked away until 10 years before your state pension age, but after that you can take 25 per cent tax free.
Netwealth compared a £10,000 mortgage down payment with the potential outcome from a pension investment. Over 20 years, on a fixed rate of 5 per cent the mortgage would amount to £26,533. If the pension grows at an average of 5.2 per cent, Netwealth’s estimated returns on a portfolio invested 90 per cent in equities and 10 per cent in bonds, it would have a cumulative net benefit over the mortgage of £2,487 for a basic rate taxpayer and £5,237 for a higher-rate taxpayer.
However, using the same growth assumptions versus a 6 per cent mortgage, the advantages of the pension are whittled away, with the mortgage downpayment winning for both basic and higher-rate taxpayers, albeit by just £300 for the higher-rate taxpayer.
If you’ve already used annual pension and Isa annual allowances, you’d be investing using a taxable general investment account. A tax-efficient way for those who are cashing in investments in a general investment account that have risen in value would be to use your annual £12,300 capital gains tax allowance to make the overpayments.
It could be worth doing. Using the same 5.2 per cent growth assumptions over 20 years, Netwealth calculates that a basic rate taxpayer choosing to invest could lose £4,333 compared with the certainty of paying off a 5 per cent mortgage, and a higher rate taxpayer could lose £8,633. On a 6 per cent mortgage the potential losses are £9,871 and £14,171.
You’d need to take high risks — investing 100 per cent in equities and targeting punchy annual returns of 10 per cent or more to make investing the potential outright winner. And you could always lose.
But, if you’re determined to continue investing, here’s some comfort.
Any extra money you throw at the mortgage is difficult to access immediately — for example, if you lost your job, or had a spell of ill health. As recession lurks around the corner, you may want that financial flexibility.
Also, bear in mind that the average homeowner is overexposed to residential property. So, be wary of increasing it. Property pundits expect the cost of living crisis to curb what has been rapid growth in property prices (notwithstanding the government’s boost to activity from a new stamp duty incentive).
Calculate the value of equity held in your home as a percentage of your overall net worth. Some UK financial advisers recommend 30 per cent of net wealth in residential property is ideal. You might already have much higher exposure.
Being a borrower with a fixed-rate mortgage is a classic inflation hedge. Your house value could move up, but your fixed rate loan is not going to change, and might feel less burdensome after a few years of higher inflation reducing the buying power of our pounds. Of course, your house could drop in value but, in the long run, that hasn’t been the British experience.
Note these are mostly rational arguments. Emotion will also play a part in your decision.
Your personal risk appetite is different to that of your friend or relative, or even your younger self. As you build wealth, a little more can make less of a difference to your life. You might simply choose to lower your risk rather than increase your returns.
How would you feel, think, or live differently if you didn’t have a mortgage? If your mortgage feels like a mental burden, stops you from changing career, or sparks arguments at home, make it your priority.
Not everyone wants to collect art, fly first class, or drive a Porsche. If being mortgage-free is your luxury of choice, a status symbol that simply makes you feel good, that’s perfectly valid.
In any case, paying down debt doesn’t have to be forever. It may be possible to get a larger mortgage later. Just don’t count on interest rates returning to their all-time lows.
Moira O’Neill is a freelance money and investment writer. Twitter @MoiraONeill and Instagram @MoiraOnMoney
Global Consultancy Services Market Outlook from 2022 to 2028 provides industry analysis, important insights, and a competitive and useful advantage to the pursuers. The report studies the global status of the market along with growth opportunities, main players, and future forecasts. The report focuses on the growth and development of the global Consultancy Services market by players, regions, type, and application, forecast to 2028. One of the objectives of the report is to offer an in-depth evaluation of each crucial aspect related to the market size, market share, market growth factor, key vendors, revenue, value, volume, top regions, industry trends, product demand, capacity, and cost structure. The report assists to create merger and acquisition opportunities by analyzing the market vendors. The analysts have estimated a share of every segment of the market, giving methodical information about types and applications of the market.
Competitive Landscape:
The market report highlights key players included in the global Consultancy Services market in order to render a comprehensive view of the competing players existing in the market. Company details, strategies, aptitude, history, cost analysis, and prevalent strategies. The reader can identify the player’s footprints by knowing the company’s total sales, the company’s total price, and its production by the company over the 2022-2028 forecast-period. The competitive landscape of the market has been elaborated by studying a number of factors such as the best manufacturers, prices, and revenues.
DOWNLOAD FREE SAMPLE REPORT: https://www.marketsandresearch.biz/sample-request/305338
Leading manufacturers/companies operating at both regional and global levels:
- Broadridge Financial Solutions
- GFT
- FinTech Network
- Fospha
- Shashvat Systems
- Actualize Consulting
- SkySparc
- Valley Valuations
- TABB Group
The most important types of products covered in this report are:
- Data Consultancy
- Content & Conferences for Banking
- Business Valuations and Exit Planning
- Others
The most widely used downstream fields of market covered in this report are:
- Large Enterprises
- SME(Small and Medium-sized Enterprises)
Regional Level Analysis:
This report sheds light on the sales growth of different regional and country-level markets. For the historical and forecast period 2022 to 2028, it provides detailed and accurate country-wise volume analysis and region-wise market size analysis of the global Consultancy Services market. The industry existence and maturity analysis will lead to investment feasibility and development scope. The estimated growth rate of all the regions as well as the returns assembled by each region during the forecast period is mentioned in the report.
ACCESS FULL REPORT: https://www.marketsandresearch.biz/report/305338/global-consultancy-services-market-2022-by-company-regions-type-and-application-forecast-to-2028
What Benefits Does This Research Study Provide?
- Supporting company financial planning
- Open up new markets
- To seize powerful market opportunities
- The key decision in planning and to further expand global Consultancy Services market share
- Identify key business segments, market proposition & gap analysis
- Assisting in allocating marketing investments
Sharekhan by has buy call on Tata Consultancy Services with a target price of Rs 3250.
The current market price of . is Rs 3018.65
Ltd., incorporated in the year 1995, is a Large Cap company (having a market cap of Rs 1104100.46 Crore) operating in IT Software sector.
The current market price of . is Rs 3018.65
Ltd., incorporated in the year 1995, is a Large Cap company (having a market cap of Rs 1104100.46 Crore) operating in IT Software sector.
Tata Consultancy Services Ltd. key Products/Revenue Segments include Consultancy Income and Sale of Equipment & Software Licences for the year ending 31-Mar-2022.
Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 53547.00 Crore, up 3.83 % from last quarter Total Income of Rs 51572.00 Crore and up 16.07 % from last year same quarter Total Income of Rs 46132.00 Crore. Company reported net profit after tax of Rs 9519.00 Crore in latest quarter.
Investment Rationale
The stock has tested the July low, where it is getting fresh buying support.
Promoter/FII Holdings
Promoters held 72.3 per cent stake in the company as of 30-Jun-2022, while FIIs owned 13.5 per cent, DIIs 8.36 per cent.
(Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
Cross adds ninth: Cross Hotels & Resorts, Bangkok, Thailand, has signed a management agreement for a riverfront property in Bangkok with Kene Hotel Bangkok Co. Ltd. The 169-key Away Bangkok Riverside Kene will be the ninth addition to Cross’ portfolio this year. Cross’ portfolio includes over 27 hotels under five brands across Indonesia, Vietnam, Thailand and Japan.
IHG signs 5 conversion deals: IHG Hotels & Resorts has signed a multi-property development agreement with France’s Grape Hospitality for five conversion properties totaling 810 rooms in key destinations across Europe. The properties include voco Madrid Centre Retiro (the first voco hotel in Spain); three Hotel Indigos (in Florence, Italy; Bordeaux, France; and Barcelona, Spain) and Crowne Plaza Madrid Centre Retiro. The Hotel Indigo brand now has 40 open hotels in Europe with 19 more in the pipeline, while voco has grown to 15 open properties in Europe following the recent opening of voco Dusseldorf Seestern and voco Venice Mestre – The Quid. Crowne Plaza has 88 open hotels in Europe, including a recently opened property in Budapest.
NewcrestImage JV acquires BW Plus: A joint venture of NewcrestImage, Dabu Hotels and Countrywide Hospitality has acquired The Best Western Plus in Page, Arizona. The 130-key hotel will be operated by Terrapin Hospitality. NewcrestImage has now added 77 hotels totaling 8,000 rooms since March. In September alone, the Dallas, Texas-based company added 60 Marriott-branded hotels with around 5,500 rooms across 19 states.
Tivoli Hotels debuts in Spain: Tivoli Hotels & Resorts has announced its debut in Spain with the upcoming launch of Tivoli La Caleta Resort in Tenerife, Canary Islands. The resort, which is closed and undergoing refurbishments, will reopen in spring 2023 and will offer 284 rooms, including 20 suites. Tivoli will continue its collaboration with Portuguese chef Olivier de Costa to develop and implement new concepts. The brand currently has 16 properties across four countries.
RADCO acquires in Florida: The RADCO Companies has acquired three new hotels in the Gulf of Mexico resort community of Panama City, Florida, at an undisclosed price. The properties include a Hampton Inn, Home2 Suites and an adjacent Fairfield Inn & Suites. All three properties will be managed by LBA Hospitality. The properties add 281 Marriott and Hilton rooms to RADCO’s Hospitality Division. Hospitality Real Estate Counselors served as brokers for the Home2 Suites and Fairfield Inn hotels, while Hunter Hotel Advisors brokered the Hampton Inn deal. One of the acquired properties opened in 2021, while the rest two will undergo minor renovations. RADCO will make more capital and operational improvements to all the properties, as part of its value-add strategy. RADCO created a hotel division in 2021 in response to the operational and capital markets disruptions in the hospitality sector caused due to the pandemic.
Hyatt Place El Segundo sells: JLL’s Hotels & Hospitality Group has closed the US$49 million sale of the Hyatt Place Los Angeles/ LAX/ El Segundo in El Segundo, California. JLL represented the seller, Washington Holdings, and procured the buyer, El Segundo-headquartered Welcome Group. The 143-key, select-service hotel was sold unencumbered by management. It was renovated in 2020. The JLL team was led by Senior Managing Director John Strauss, Managing Director James Stockdale and Executive Vice President Melvin Chu.
Streetsense acquires Pure Grey: Streetsense, an experience-based strategy and design group, has acquired Pure Grey, Marriott International’s in-house F&B concept and operations consultancy. Pure Grey, which delivers experiences across all hospitality segments and licenses its own restaurant brands globally, has developed restaurants and bars like Revel & Rye at the New York Marriott Marquis, Laurel Brasserie & Bar at The Grand America Hotel, Spice Market at Live Aqua San Miguel de Allende, Mexico, and launched the Market Kitchen brand at the W Algarve, Portugal. Pure Grey has also helped Marriott revamp its dining strategy after the merger with Starwood Hotels & Resorts. Streetsense has appointed Ed Viita, Pure Grey’s senior director, as its new managing director of hospitality.
More than 2mn households in the UK face sharp rises in their mortgage costs over the next two years, dramatically increasing the chances of a property price crash as many are forced to sell, according to analysts.
The warning comes as average mortgage rates are forecast to exceed 6 per cent in the first half of next year as the Bank of England raises interest rates more aggressively to try to address the market turmoil in the wake of chancellor Kwasi Kwarteng’s tax-slashing mini-Budget last week.
The fallout has already caused chaos in the mortgage market, with many lenders, including HSBC and Santander, suspending new deals for up to a week as they attempt to reprice them.
Analysts said that once lending resumed, borrowers would face much higher costs at a time when inflation is eating into budgets and the prospect of a recession looms, which could ultimately trigger a housing market crash.
“For the last few months, we’ve known this is a possibility but it’s looked like the worst-case scenario. Now we are heading for that scenario,” said Neal Hudson, a housing market analyst and founder of the consultancy BuiltPlace.
“I’m still not 100 per cent certain the market will crash . . . but it’s the main assumption now,” he added.
More than 2mn borrowers with fixed-term products will need to remortgage between now and the end of 2024, according to Bank of England data. And buyers who stretched their budgets when rates were low may simply not be able to cover the higher costs.
“I think there will be a lot of stress in the market. People who agreed mortgages five years ago are coming off 1 to 1.5 per cent rates and moving to 4.5 to 5 per cent. Monthly payments could go up £500 to £600,” said Andrew Montlake, managing director at broker Coreco, adding that he expected forced sales to increase as a result.
Pantheon Economics calculated that an average household refinancing a two-year fixed rate mortgage in the first half of next year would see monthly repayments jump from £863 to £1,490.
Rising rates and falling values would also wipe out any savings from the stamp duty cut that Kwarteng announced as part of his £45bn package of tax cuts. The chancellor doubled the threshold for buyers in England and Northern Ireland from £125,000 to £250,000, offering a maximum saving of £2,500.
In May last year, a borrower could have secured a two-year fixed rate mortgage with a 75 per cent loan to value ratio came with an interest rate of under 1.5 per cent. The rate for the same product is now about 4 per cent, and by May next year is expected to hit 6 per cent or higher.
Before Kwarteng’s mini-Budget spooked the markets, analysts had forecast the housing market would cool as the Bank of England put up interest rates gradually over the course of this year.
But Ian Mulheirn, chief economist at the Tony Blair Institute for Global Change, said the new chancellor’s intervention had drastically changed expectations. “We’ve seen a whiplash turnround in expectations of where the base rate is going to peak: the fuel was added by the fiscal statement last week.”
The last time mortgage rates were at a level similar was in May 2012, according to Mulheirn. At that point, the average house price was £168,400. Over the past decade it has risen to £283,500, according to official figures, as historically low interest rates allowed buyers with a deposit, to stretch their budgets and borrow larger and larger sums.
Mulheirn warned that the sharp reversal of the trend in interest rates had left an overpriced housing market perilously exposed.
“Interest rates are going back to where we were a decade ago, and prices are up [more than] 50 per cent since then. It’s not exotic to think you could see real house prices fall a third in the long term,” he said, adding: “People coming to the end of their mortgage deals are facing a fairly awful set of options.”