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A Reuters poll of 30 property industry experts has seen them predict that average house prices in London will fall by around 1% this year - the first annual decline since 2009. Prices across the rest of the country, they suggest, will climb 1.7%. This comes as ONS figures show the average value of a London property dipped 0.7% in the year to March, hitting £471,944. This decline was the second consecutive month where prices edged downward and the biggest dip since September 2009.
Evening Standard (07/06/2018) City AM (07/06/2018)
Rents in London far outpace wage growth, according to analysis of Valuation Office Agency figures by union GMB, which pegs average rents in the capital at £1,500 per month. It was found that while rents in London rose 25.9% between 2011 and 2017, earnings increased by just 9%. Greenwich has seen the largest increases, with monthly rental charges up 50% in the period to an average of £1,350, while rent in Newham increased by 47.4%, and Barking and Dagenham by 42.4%. In England as a whole, the GMB said, rent has increased by 18.2%, with the average two-bedroom flat costing £650 per month.
The Independent (04/06/2018) City AM (04/06/2018)
Analysis by the Daily Mail shows that almost a quarter of all mortgages from major banks and building societies are interest-only, with borrowers owing more than £200bn. Jonathan Harris, of mortgage broker Anderson Harris, said: “This is a time bomb. I'm sure the problems are going to come home to roost as borrowers get to the end of their mortgage terms and are suddenly asked for the money back.”
Daily Mail (01/06/2018)
Construction of the 67-storey Spire London, set to be the tallest residential skyscraper in western Europe, has been halted. It was expected to be completed by 2020. Now, however, the £800m scheme is at a standstill and prospective buyers are being told that sales had been temporarily halted because the design was under review. The economics of the project, by the Chinese developer Greenland Group, were also understood to be under scrutiny due to the fall in London property prices.
The Sunday Times (27/05/2018)
An Indian conglomerate claims its regeneration plans in east London have been dismissed by the Greater London Authority and existing owners the Silvertown Partnership. Essel Group said it had been in advanced talks to buy a 62-acre site at Silvertown, which would have housed a huge cultural centre and thousands of homes. Insiders said the partnership was now in exclusive talks with Lendlease and Starwood Capital to buy the site. “This approach suggests the interests of the developers are being put ahead of what is best for London,” said Essel chairman Subhash Chandra.
The Times (29/05/2018) City AM (29/05/2018)
London’s house prices have seen the slowest growth out of all major UK cities except Cambridge over the last year, according to property market analytics firm Hometrack. House prices in the capital increased by just 0.8% in the last year, while Cambridge saw house prices increase by just 0.1%. The data also showed the impact of larger discounts from asking prices. In England, discounts on asking prices were largest in London, Oxford and Cambridge, of up to 4.7% on average.
The Times (29/05/2018)