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London has attracted a growing number of first-time buyers, despite a decline in other parts of the country. The capital recorded 9,960 first-time buyers' mortgages completed in the second quarter, up 1.2% on a year ago, UK Finance figures show. Economists said that the sharper drop in property prices in London may help to explain why first-time buyer interest had grown in the city. Analysts noted that affordability was still stretched and that overall lending to first-time buyers in the capital was still well below the national average.
The Times (20/08/2019)
Following a six-year planning battle, Tower Hamlets Council in London has ruled against a development of flats by a subsidiary of Galliard Homes on the grounds that it would “harm the long-term provision of a nightclub that serves the LGBT+ community”. The decision means the 34-year-old Backstreet Bar will be spared from closure.
The Guardian (16/08/2019)
The traditional summer property slowdown is weighing particularly heavy this year. HMRC figures reveal a marked reduction in the number of property transactions over the summer months, with a fall of 8.5% in residential transactions between June and July 2019, and a 12.4% decrease since July 2018. Residential property transactions totalled 86,630 in July - 8,000 fewer than the previous year - according to the report, which studied transactions worth over £40,000 in Scotland, England and Wales.
The Times (22/08/2019)
According to analysis by research consultancy Capital Economics, the monthly cost of paying the interest on a new mortgage in the UK is now 62% lower than renting, as the average monthly rent for a property is £859, compared with the £323 average monthly interest on a new mortgage. In comparison, between 2010 and 2018, the average interest on a mortgage was 55% lower than the average rent, while paying the interest on a mortgage in the 2000s was only 27% cheaper than paying the rent. The report said that while mortgage payments have fluctuated broadly in line with rents over the past decade, lower interest rates meant that larger shares of those payments were now being used to pay off the loan capital. In the 1980s and 1990s, about 80 to 90% of payments on a new mortgage covered the interest, a ratio that was down to 50% in the 2010s and 41% last year.
The Times (19/08/2019)
London house prices have endured their 16th consecutive month of declines, taking average prices in the capital below where they stood on the day of the Brexit referendum. The average home in London lost more than £13,000 in value over the 12 months to June, to £466,824, according to Land Registry data. Prices in Wales are up 4.4% annually and those in Northern Ireland climbed 3.5%. Within England, the East Midlands showed the strongest growth in prices with a rise of 3.2% on last June's property values. Analysis by Savills indicates that 18 London boroughs still have prices higher than they were on the day of the referendum, though 14 and the City of London have seen falls. Prices in the City are 21.6% below June 2016, the worst-affected area, while the biggest Brexit falls in any borough were in Hammersmith and Fulham, down 11.4%. In Barking & Dagenham they remain 11% higher and, across Brit ain, prices rose 0.7% in the month of June to an average of £230,292 - up 0.9% on June 2018. Richard Donnell, research and insight director at Zoopla, said: "Signs of greater realism on pricing from sellers has resulted in a small but important increase in sales, but affordability and weak market sentiment are still the main constraints here."
The Times (14/08/2019)
A development boom in East Belgravia will see £1.4bn of investment in luxury homes and hotels, according to a new report. The plot of land between Upper Belgrave Street and Grosvenor Place has been earmarked for private mansions, penthouses and VIP clubs, earning it the moniker “billionaire’s strip”. “Currently the value of property within this enclave is underpriced relative to neighbouring addresses and this has attracted inward investment from both corporate and boutique developers, with the regeneration taking place likely to generate an uplift in property values in the location over the next two to three years,” commented Gary Hersham, founding director of Beauchamp Estates.
City AM (16/08/2019)