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The total value of new mortgages set to be handed out in the coming months reached its highest level since 2007 towards the end of last year, Bank of England figures show. New mortgage commitments in the fourth quarter of 2020 totalled £87.7bn – however, the share of mortgages advanced to borrowers with deposits of less than 10% was 1.2%, marking “the lowest level since these statistics began in 2007”. Gross lending totalled £249bn in 2020, showing a 9.8% fall compared with 2019 (£276bn).
Evening Telegraph (10/03/2021) Daily Express (10/03/2021)
Caledonian Modular has confirmed the award of a contract package for a 279-key aparthotel in Canary Wharf, London. Canary Wharf Contractors is delivering the main build after a £74m development loan was secured by Canary Wharf Group and hospitality group edyn. The 20-storey Locke aparthotel is to be built at One Charter Street on Wood Wharf, Canary Wharf’s new mixed-use district. The job involves building 17 floors of volumetric modular serviced apartments over a retail/amenity space in the lower podium levels. The scheme will be crowned with a rooftop restaurant providing a unique dining experience with prime views over London City.
Construction Enquirer (01/03/2021)
The effects of the pandemic have hit demand for flats in London. In January, asking prices for inner and outer London flats were down 16.2% and 6.7% respectively compared with May 2020, according to data company TwentyCi. The proportion of flats sold has fallen too, as consumer demand quickly changed, favouring a house with a garden in the outskirts over a small flat in a handy location. Despite the headwinds facing the London flat market, pent-up demand from the shutdown last year, and the added incentive of the stamp duty holiday, have still boosted sales; TwentyCi found that in December, agreed sales for inner London flats were up 40%, going on to rise 8% year-on-year in January.
The Daily Telegraph (26/02/2021)
The stamp duty holiday has been extended by six months until the end of September, an extension that includes a tapering of support, with the nil-rate band gradually lowering from June. The extension applies to all transactions in England and Northern Ireland, meaning buy-to-let investors will continue to benefit from the tax savings. The deadline for buyers to take advantage of the higher £500,000 nil-rate band has been extended by three months. This means that buyers can save up to £15,000 in tax if they can complete their sales by June 30. After this date, the nil-rate band will drop to £250,000 until September 30th, with the maximum tax savings falling to £2,500 during this period. From October 1st, the nil-rate band will fall back to its original level of £125,000.
The Daily Telegraph (03/03/2021) The Times (03/03/2021) Financial Times (03/03/2021)
Figures from Nationwide show that average UK house prices grew 6.9% year-on-year in February, up from the 6.4% growth recorded in January. The average price hit a record £231,068 last month, with this marking a 0.7% month-on-month increase following a 0.2% dip in January. Nationwide's chief economist Robert Gardner said the increase seen in February was a surprise, with growth having been expected to soften as the (then-expected) end of the stamp duty holiday neared. He added that “if labour market conditions weaken as most analysts expect, it is likely that the housing market will slow in the months ahead”.
BBC News (02/03/2021) Financial Times (02/03/2021)
Leading estate agents are reporting record levels of new buyer interest in prime London property in January, thanks to price adjustments, London's ongoing reputation as a safe haven for wealth, and pent-up demand to buy. The number of prospective buyers registering to view £10m plus properties more than doubled in the year to January, compared with the same 12-month period the year before.
Evening Standard (25/02/2021)