Docklands News

The average UK house price surged by 12.4% in April, up from 9.7% in March, according to the Office for National Statistics. Average values jumped to £281,000 in April, £31,000 higher than this time last year. In Wales and Scotland, house price growth hit 16.2%. In England, the rate was 11.9%, while Northern Ireland recorded 10.4% growth. The South West had the fastest price rises of any region in England, with growth at 14.1%, while London recorded the slowest pace of growth at 7.4%. However, due to a lag in ONS data, the figures do not reflect the current state of the cooling market. Andrew Montlake, of mortgage broker Coreco, said: “This data is not a true reflection of where the market is at right now. The era of ultra-cheap money is finished and that will soon start to feed through into house price growth.” 

Evening Standard (22/06/2022)   The Daily Telegraph (22/06/2022)  

House sales were down by 5% in May this year than in the same month in 2021, according to HM Revenue and Customs (HMRC) figures. Some experts said it could be a sign of the impact of rising mortgage rates and living costs on the housing market. Across the UK, 109,210 homes changed hands last month, marking a 5.1% fall compared with May 2021. However, the total did edge up by 1.3% compared with April 2022. The total for May this year is also up compared with the 96,500 house sales recorded in the same month in 2019, before the coronavirus pandemic. 

Evening Standard (21/06/2022)  

Around a quarter of first-time buyers are paying stamp duty as house prices have soared, analysis has revealed. The HomeOwners Alliance called for an urgent review of the tax, which applies in England and Northern Ireland. The organisation, which made its findings using provisional HM Revenue and Customs (HMRC) figures, said around 26% of first-time buyer transactions were liable for stamp duty in the first quarter of this year. This compares with around one in five first-time buyer transactions in the fourth quarter of 2017. Paula Higgins, chief executive of the HomeOwners Alliance, a property advice website, said: "It's clear that the stamp duty tax needs to be reviewed to ensure it's facilitating rather than fettering first-time buyers." 

The Independent (21/06/2022)  

Buy-to-let yields have hit a record low, fuelling fears that property investors will sell up. Nationally, gross rental yields are already at a record low of 4.38%, as house prices have climbed more quickly than rents. Research consultancy Capital Economics has forecast that by the end of 2022 yields will hit a new low of 4.26%. As interest rate rises push up land lords' outgoings, next year the margin between rental income and mortgage costs will become the most squeezed it has been since the financial crisis. 

The Daily Telegraph (18/06/2022)  

More than 2m households face increased mortgage payments after the latest Bank of England interest rate rise. The Bank rate has been increased from 1% to 1.25% as officials look to tackle rising inflation and borrowers who have variable mortgage rates will see their monthly repayments go up. Analysis by industry body UK Finance shows that those on standard variable rates will see an average annual increase of £191, while for tracker deals the figure is £303. The increase affects a quarter of mortgage borrowers, which translates to about 2.25m households. 

Daily Mail (16/06/2022)   Sky News (16/06/2022)   The Daily Telegraph (16/06/2022)   The i (16/06/2022)  

The Resolution Foundation has suggested the COVID-19 pandemic will have a lasting impact on the housing market. Researchers said house prices grew nearly twice as fast in villages and small towns as they did in major cities between February 2020 and February 2022, by 22% and 12% respectively. This has led to some balancing out of regional house price gaps as cheaper homes increased in cost at a faster rate than higher-value properties. However the report warned low-paid households risk being “priced out” of homes in areas traditionally overlooked by commuters but now more in demand, amid the rise of flexible working. The authors insisted greater supply is needed to prevent “worrying” consequences. “Unless more houses are built in response to this apparent extra demand, the long-run consequence may just be to reduce housing affordability in what are currently some of the lowest-paid parts of the UK,” the report added.

The Daily Telegraph (16/06/2022)   The Independent (16/06/2022)