Docklands News

According to HM Revenue & Customs (HMRC), home sales in September increased by 9% compared to the same month last year, with approximately 91,820 transactions recorded. This marks the first month-on-month rise since May, albeit a slight increase of less than 1% from August. 

Daily Mail (01/11/2024)   The Standard (01/11/2024)  

Home sales in the UK are expected to jump at the start of next year as buyers rush to purchase properties before the rise in stamp duty takes effect in March 2025. At the moment, buyers of homes worth less than £250,000 don't pay stamp duty. This was doubled from £125,000 under Liz Truss's mini-Budget in September 2022. The threshold is £425,000 for those buying their first property. This was raised from £300,000 as part of the mini-Budget. Nationwide predicts that the March change will impact one fifth of first-time buyers, although the overall effect may be less significant than previous changes due to high interest rates dampening market activity. Chief economist Robert Gardner said: "Affordability is also still relatively stretched at present," indicating ongoing challenges for buyers. The changes will primarily affect England and Northern Ireland, with less impact in areas with lower house prices. The average UK home price reached £265,738 in October, reflecting a gradual recovery in the market. 

The Daily Telegraph (01/11/2024)   The Guardian (01/11/2024)   The Standard (01/11/2024)  

The Royal Town Planning Institute (RTPI) has released a report highlighting the failure of planning rules over the past decade to connect new housing developments to public transport. Despite the National Planning Policy Framework (NPPF) aiming to prioritise public transport, walking, and cycling, the study found that 96% of new homes were within a 20-minute drive of a town centre, but only 66% were accessible by public transport and 47% by walking. The RTPI is urging ministers to consider changes to the NPPF to improve transport links as part of plans to create 1.5m new homes in the current parliament. Recommendations include increased investment in public transport and disincentives for car use. 

The Guardian (05/11/2024)  

Landlords are racing to exchange contracts on property purchases to avoid a sudden increase in stamp duty, which has risen by 2 percentage points to 5%. According to analysis by Savills, a landlord buying a property worth £500,000 will incur an additional £10,000 in tax, while a £1m home will see an extra £20,000. Rachel Reeves stated: "This is expected to result in 130,000 additional transactions over the next five years by first-time buyers." However, critics warn that this could lead to a significant reduction in rental properties, with a Capital Economics report predicting that 540,000 properties could vanish from the rental market within a decade. Ben Beadle, chief executive of the National Residential Landlords Association, remarked: "This will not help the many tenants for whom home ownership is a distant dream." The Office for Budget Responsibility estimates the tax increase will generate only £400m by 2029-30, while overall stamp duty is projected to raise £14.1bn in 2024-25. 

The Times  

Sales in London's luxury property market have significantly declined, with 314 transactions above £5m recorded in 2024, representing a 23% drop compared to the previous year. However, this figure is still over 50% higher than in 2019, according to analysis by Savills. Notably, nearly 100 properties sold for £10m or more, maintaining last year's levels. The total value of properties sold for over £5m reached £3.28bn, down from £4.41bn in 2023. 

London Evening Standard  

According to Zoopla, approximately 306,000 homes are currently working their way through the buying process to completion, representing a £113bn sales pipeline. This is the highest number since autumn 2020, up 26% more than last year. The strong momentum in new sales is expected to continue into December. “It is positive to see the sustained increase in sales activity over 2024 which reflects growing confidence amongst buyers and sellers,” said Richard Donnell, executive director at Zoopla. The increase is being driven by first-time buyers, who are now expected to make up 36% of sales in 2024, with 31% for existing owners. Many first-time buyers are also keen to complete their purchases before potential changes to stamp duty relief, which could be addressed in the upcoming Budget. 

London Evening Standard   The Independent UK