The parent group of Skipton Building Society and Connells estate agency has hailed the success of its new zero-deposit mortgages but pointed to high levels of disruption in the housing market.
The Skipton Group said it had “performed strongly in the first half of 2023, though group profit before tax fell to £148.9m from £160m during the same period last year. Skipton said the launch of its Track Record mortgage - which offers loans to would-be homeowners without a deposit if they have evidence of at least 12 months of rental history, as well as passing credit and affordability checks - was helping people “trapped in expensive rents access the finance needed to own a home of their own”.
The building society said it had made £3.4bn of mortgage advances, up 27% year on year, helping nearly 9,000 first time buyers. Society membership had grown 3.1% to 1.17m, it said.
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But it also revealed that its Connells estate agents group had incurred a £5.8m loss and said the fallout from the Liz Truss/Kwasi Kwarteng mini-budget had stalled the housing market at the end of 2022, leading to a 26% fall in its sales pipeline. There were signs of improvement in the housing market, it said, with customers “active but exercising caution.”
The impact of rising interest rates was also demonstrated in the group’s reports with its interest receivable more than doubling to £770.3m.
Chief executive Stuart Haire said: “In May we took a stand, by launching a new option for aspiring first-time buyers that no lender has before - our Track Record mortgage helps those trapped in expensive rents to get access to a mortgage. I feel very strongly that we can and should do more to support our potential and current members with this massive housing challenge; it links clearly to our founding purpose and why building societies exist. I could not be prouder of the impact it is having.
“In June we launched a new highly competitive member benefit product in the form of a regular saver that pays an interest rate of 7.5%, allowing members to make the most of their hard-earned savings. Earlier this year we offered all our members a free Home Energy Efficiency Assessment Report (EPC Plus), to help them on their journey to greening their homes and making them more energy efficient.
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“The Skipton Group touches each aspect of the property journey like no other organisation; from first-to-market savings products like the cash Lifetime Individual Savings Account (Lifetime ISA); to innovative mortgage products; combined with the 海角视频’s largest estate agency supporting members, sellers and buyers alike.
“We are making good progress to leverage the group’s structure, unique mix of businesses and, of course, our proud mutual status to be there during the moments that matter to our members. Our Society’s performance in the first half of 2023 casts no doubt on just how valued it is - with growth in member numbers, mortgage and savings balances.”