Docklands News

House prices fell by 0.2% in June, Halifax data shows, which surprised economists who had predicted an increase. The average house price in the UK is now £288,455. Despite the recent slowdown, prices are still 1.6% higher than last summer. The housing market activity has been "broadly flat" over the past year, and Nationwide predicts that prices will "flatline at best" over the summer. The shortage of available properties, rather than demand from buyers, continues to drive higher prices. Prices are rising fastest in Northern Ireland and the northwest of England, while the east of England has seen a 0.9% decrease in prices. Halifax expects prices to rise modestly for the rest of the year and into 2025. Opinions on the near-term future of the housing market are split, with some economists predicting a tepid increase in prices this year, while others expect a 5% increase in 2025 due to rapid interest rate cuts by the Bank of England

BBC News (05/07/2024)   Daily Mail (05/07/2024)   The Guardian (05/07/2024)   The Times (05/07/2024)  

Property professionals' expectations for an uplift in house sales are at their strongest level since the start of 2022, according to a survey by the Royal Institution of Chartered Surveyors (RICS). While 20% of professionals expect a recovery in home sales over the next three months, 54% anticipate higher house prices in a year's time. The survey also revealed a pick-up in tenant demand and a decline in new rental listings. Economists are predicting a potential cut in the Bank of England base rate, which could soften lending rates and support a housing market recovery. "Although activity across the housing market remained subdued last month, forward-looking aspects did improve slightly. There are some factors emerging now that could support a recovery in the months ahead", said Tarrant Parsons, senior economist at the RICS. 

Daily Mail (10/07/2024)   Evening Standard (10/07/2024)   The Times (10/07/2024)  

Moneyfacts reported that the number of 5% deposit mortgage deals reached its highest level in July, with 361 options available. This marks the highest total since May 2022. The increase in low deposit deals is good news for first-time buyers. Across all deposit sizes, there were 6,658 mortgage options available, the highest number since February 2008. The average shelf-life of a mortgage product also increased to 30 days in July. Rachel Springall, a finance expert at Moneyfacts, stated that there is room for growth in the 5% deposit market, as it currently represents just 5% of all mortgage deals. 

Daily Mail (09/07/2024)   Evening Standard (09/07/2024)   The Independent (09/07/2024)  

With Labour preparing to form the next government, experts believe the party's housing policies could provide a much-needed boost to the UK property market. Labour has promised to build 1.5m homes and help first-time buyers through a mortgage guarantee scheme. The change of government is also likely to bring market stability, while base rate cuts from the Bank of England are also expected, which would lower mortgage rates and encourage more people to buy or sell homes. The Guardian says that relaxing planning constraints on greenbelt building, increasing the construction workforce, developing new communities, and funding social housing are all levers to pull. But, it adds that of these options, the first may be unpopular, the second needs time, the third has failed under David Cameron and Gordon Brown, and the fourth seems implausible given the main parties' economic constraints. Separately, the Telegraph notes that that British prime ministers who presided over strong housing markets have enjoyed longer tenures. Baroness Margaret Thatcher and Sir Tony Blair saw significant house price growth and high numbers of first-time buyers during their terms. However, Liz Truss and Gordon Brown experienced declines in property values and first-time buyer numbers.

The Daily Telegraph (05/07/2024)   The Guardian (05/07/2024)   The Sun (05/07/2024)  

Newham Council has given the green light for plans to turn the largest surviving group of Victorian gasholders into a new neighbourhood with 2,100 homes. The Bromley by Bow Gasworks site, near the border between Newham and Tower Hamlets, comprises seven disused Grade II listed gasholders. Under plans drawn up by architect RSHP for St William Homes, a joint venture formed by Berkeley Group and National Grid, these will be restored to incorporate many of the new homes within the cast iron structures. The remaining homes will be built in higher rise surrounding cylindrical buildings echoing the gas holder homes. A Section 106 legal agreement has to be finalised with London’s Newham Council, before work can begin on site in 2025.  

Construction Enquirer (01/07/2024)   Housing Today (01/07/2024)   Property Week (02/07/2024)  

House prices in the UK rose by 0.2% between May and June, according to the Nationwide House Price Index. The market remained fairly subdued, with transactions down by around 15% compared to 2019 levels. The average price of a home in the UK is now £266,064, with London homes averaging over double that at £525,248. Despite stronger earnings growth, higher mortgage rates have impacted house price growth. The annual rate of growth rose from 1.3% in May to 1.5% in June, leaving prices around 3% below the all-time high recorded in 2022. Due to rising borrowing prices, mortgage transactions have continued to decrease, falling by more than 25% from their peak five years ago. In contrast, because of the fact that higher rates have a damping effect on pricing, the number of cash buyers is actually up 5% from pre-pandemic levels. 

City AM (01/07/2024)   Daily Mail (01/07/2024)   The Guardian (01/07/2024)   The Times (01/07/2024)