020 7538 0102
House prices are expected to fall towards the end of the year, according to revised estimates from the Office for Budget Responsibility. It said that average prices will drop by 0.3% in the fourth quarter of 2019. Growth is expected to return in the second quarter of 2020, to 0.9%, but will remain well below the previously forecast figure of 3.1%. The OBR said: “Indicators of housing market activity and price expectations have deteriorated significantly since our October forecast and are consistent with a further fall in house price inflation”.
Daily Mail (13/03/2019)
Mortgage lending in the UK was up for remortgaging in the fourth quarter of 2018 compared to a year earlier, according to data from the Bank of England and the Financial Conduct Authority, though down for house purchasing. Lending to existing borrowers was 1.4 percentage points higher than a year earlier, at 31.1% of the total figures, the statistics revealed, while the proportion of lending for house purchases, including buy-to-let lending, was one percentage point lower than in 2017’s fourth quarter - at 63.5%. The data also revealed that the percentage of total loans going to first time buyers remained high by historical standards, at 21.2%.
City AM
The number of skyscrapers being completed in London is expected to reach a record high this year. An annual survey by New London Architecture and GL Hearn forecasts that construction on 76 tall buildings will be finished during the course of 2019, marking a three-fold increase on the previous year. The NLA data also reveals that 90% of all tall buildings proposed are for substantially residential use, with towers under construction expected to deliver 110,000 new homes for London. The tallest residential development, the 220m Newfoundland Quay, with 58 floors, will open later this year in Canary Wharf. Canary Wharf and the Docklands continue to be development hotspots, with 85 tall buildings planned in Tower Hamlets and 69 planned across Greenwich.
City AM (05/03/2019) The Times (05/03/2019) The Daily Telegraph (05/03/2019)
Orchard Wharf Developments has negotiated a £65.5m loan from NatWest to redevelop a site on the banks of the River Lea, neighbouring East India Docks. The project, which is already over 70% sold, replaces a former petrol station with a 24-storey tower with stepped blocks of 20, 17, 11 and eight storeys. It will contain 338 new homes, and include 4,500 sq ft of commercial space.
Property Week (04/03/2019)
Analysis by Numis shows London estate agents are particularly struggling due to Brexit uncertainties affecting supply and demand, with transactions down 12-15% in 2018 against a 7-8% drop nationwide.
Financial Times (01/03/2019)
UK city house prices rose by 2.9% over the 12 months to January 2019 – but with marked regional variations. The latest HometrackCities Index, which looks at house prices across Britain’s top 20 major cities, showed prices are rising fastest at 6% in Leicester, followed by 5.8% in Belfast and 5.4% in Manchester. However, house price inflation in London was virtually flat at 0.2%, the second slowest growth outside of Cambridge. Three of the bottom four cities for growth did still have the highest average house price, with London, Cambridge and Oxford all above £400,000. The data also showed that the weakest housing markets have the longest sales periods and largest discounts; in Aberdeen and inner London, discounts on asking prices reach 7% on average, with it taking 16 weeks to sell, on average.
City AM (01.03/2019)