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The Royal Institution of Chartered Surveyors’ latest commercial market survey shows demand for commercial property in London stayed in negative territory for the 12th quarter in a row. And demand from overseas investors has also continued to drop as Brexit looms, Niall Lindsay of surveyor Lapar said: “The key issue is Brexit. The market is less concerned about whether we remain in or out. It just wants certainty one way or the other.” Retail was responsible for pulling the overall figure below zero, with a net balance reading of minus 61 on the demand gauge. By contrast, surveyors reported seeing demand rise for industrial buildings, a large part of which was for warehouse space for online shopping.
City AM (24/07/2019)
High street banks agreed more than £50bn of mortgages to homebuyers in the first half of the year, up 10% on the first six months of 2018 and setting up lenders for their biggest year since 2007, according to data from UK Finance. The loans were offered to almost a quarter of a million homebuyers in the first six months, up 6% on the first half of 2018. The number of mortgages approved for house purchase rose to 42,653 in June, on a seasonally-adjusted basis, up from 42,407 in May and close to April’s two-year high of 42,792. Analysts said the spike in approvals could be attributed to the UK avoiding crashing out of the EU at the end of March. UK Finance added that gross mortgage lending in June was 4% lower than the same month last year, at £21.9bn, as a result of a dip in remortgaging.
The Daily Telegraph (24/07/2019) The Times (24/07/2019)
Developer Rockwell has submitted plans the London Borough of Tower Hamlets to transform Quay House in the Docklands from a three-storey building into a 40-storey tower. The proposals include a 400 bedroom hotel and 279 serviced apartments. Rockwell said the tower would overlook Canary Wharf, and is consistent with the height range of other projects already under construction in the area. It also said the scheme has been designed to activate underused public spaces below the DLR and Admirals Way to improve the waterfront’s accessibility and aesthetic.
Property Week (17/07/2019)
Detached homes in London fell in value by more than £50,000 in a year, according to official figures, driving the slowdown in UK house price growth. Typically, this type of property cost £903,088 in May last year, but fell by 6.1% to £847,998 by this May, Land Registry figures show. The prices of other property types in the capital also fell, but by less. The average home in the capital is now valued at £457,471. Just seven of London's 33 boroughs saw an increase in average sold prices in the past 12 months, including Newham, Hackney, and Barking and Dagenham. The London housing market has been affected by factors ranging from stamp duty and other tax changes to sentiment among buyers and sellers owing to Brexit. Annual property price rises overall in the UK slowed to 1.2% in May, from 1.5% the previous month.
BBC News (17/07/2019) The Times (17/07/2019) Evening Standard (18/07/2019)
First-time buyers in London are still paying more despite falling house prices, according to a new report. A Gatehouse Banks analysis shows house prices in popular areas with first buyers has risen 4.3% despite house prices dropping by 1.9% across the capital on average. Average London property values have been falling on an annual basis since March last year, but affordable areas such as Barking, and Dagenham have seen a rise in the average price paid by first-time buyers by 2.91% - up from £276,701 to £284,751 in the same period. Other parts of the capital to see a rise were Richmond Upon Thames at 2.12% and the City of London up to 16.24%.
East London Guardian (13/07/2019)
Low deposit mortgages could put thousands of house buyers in danger of falling into negative equity, according to figures from the Bank of England. Almost 20% of mortgages lent in Q1 of 2019 were given to a borrower who paid a deposit of under 10% - the highest level since the end of 2007, before the global financial crisis. If lending continues at its current rate, it means that more than 100,000 of these risky home loans will be issued this year. It also means that growing numbers of borrowers are exposed to a sharp fall in property prices which could wipe out all their equity. “Soaring demand for high loan-to-value mortgages is alarming, especially as house price growth is slowing and interest rate rises over the next five to ten years look very likely,” commented Justin Modray, from Candid Financial Advice.
Daily Mail (12/07/2019)