Docklands News

The Royal Institution of Chartered Surveyors (Rics) has reported home buyer inquiries are "flatlining" as higher mortgage rates squeeze affordability. The property industry survey shows estate agents have scaled back their expectations as climbing borrowing costs put the brakes on demand. The institution said the property markets in London and the south of England had seen a particular "loss of impetus". A net balance of 1% of property professionals reported new buyer inquiries falling rather than rising in April, following a balance of 6% reporting inquiries rising in March. Over the coming year, a net balance of 33% of professionals expect house sales to rise rather than fall. A balance of 5% of professionals reported prices falling rather than rising in April. This was unchanged from the previous month. Simon Rubinsohn, Rics chief economist, said: "A modest back-up in mortgage pricing has contributed to the flatlining in the buyer inquiries metric over the past month." 

The Daily Telegraph (08/05/2024)   The Times (08/05/2024)  

Average mortgage rates have reached their highest level since the start of the year, with 17 lenders raising rates on fixed deals by up to 0.4 percentage points. The average two-year fixed-rate is now 5.93% and the average five-year fixed-rate is 5.5%, the highest since January 2. Hina Bhudia from the mortgage broker Knight Frank Finance said: "We're talking about a slower and potentially shallower cycle of interest rate cuts from the Bank of England. Markets are expecting a new outlook in which the Bank makes one or two cuts this year rather than five or six". Bhudia said there were fears that rising rates could affect the housing market: "It could dampen demand just as the spring selling season should be gathering pace. The sun is out and buyers are returning after the Easter break, so we'd usually expect these to be the busy weeks before the summer, however the uncertain outlook for mortgage rates will undoubtedly weigh on activity".

The Sunday Times (05/05/2024)  

The tower block from Only Fools and Horses has a confirmed demolition date and is set to be replaced by £850m flats. Nelson Mandela House, actually named Harlech Tower and located in South Acton Estate, London, has now confirmed that it is set for demolition in 2027. Ealing Council have plans in place to replace the aging "shabby" tower blocks with high-quality homes that can accommodate a larger number of residents. A spokesperson from Ealing Council said: "As it is nearing the end of its life expectancy, the South Acton estate is currently undergoing an £850m rejuvenation to become Acton Gardens, which will eventually provide around 3,500 brand new high-quality, safe, and energy-efficient homes alongside a community hall, youth centre, and other facilities.” 

Daily Express (06/05/2024)  

House prices in April fell at the sharpest rate since last summer as a recent rebound in mortgage rates put a dampener on demand. Prices retreated by 0.4% last month, the second monthly fall in a row and the largest Nationwide has recorded since August 2023. Robert Gardner, Nationwide's chief economist, stated that the slowdown likely reflects ongoing affordability pressures, with longer-term interest rates rising in recent months. Nationwide estimates that the average price of a house in the UK is £261,962, or about 4% below the peak in the summer of 2022. Mortgage rates fell sharply over the winter but have started to rise again, impacting first-time buyers. Half of prospective first-time buyers have delayed their purchase due to high house prices and higher mortgage rates. Affordability is expected to improve as the year progresses, leading to a rise in house prices again. 

Daily Mail (01/05/2024)   The Daily Telegraph (01/05/2024)   The Guardian (01/05/2024)   The Times (01/05/2024)  

The Independent looks at which areas in the UK have been the worst hit by rising mortgage rates. It come after over 1.4m households in the UK had fixed-rate mortgages up for renewal last year, with more than half coming off rates of less than 2%. The Office for National Statistics estimates that areas like Kensington and Chelsea saw the biggest rise in monthly mortgage payments. The area was followed by Camden with a £924 monthly increase, Islington with a £803 rise and Hammersmith with a £776 increase. 

The Independent (27/04/2024)  

The price of flats is rising at a higher rate than houses as mortgage costs jump and workers are ordered back to the office. According to data from lender Halifax, the average price of a flat rose by 2.7% in the year to February, while the prices for semi-detached and detached homes increased by 1.7% and 2% respectively. Buyers have been adjusting their expectations to compensate for higher borrowing costs and the general cost-of-living squeeze. The return of workers to the office has also pushed up the cost of flats in big cities. "As interest rates have stabilised and buyers adjust to the new economic reality of owning a home, one way to compensate for higher borrowing costs is to target smaller properties," said Amanda Bryden, head of Halifax Mortgages. 

Daily Express (29/04/2024)   Evening Standard (29/04/2024)   I (29/04/2024)   The Independent (29/04/2024)