Docklands News

Jeremy Hunt has admitted that buying a first home in Britain today is a "real struggle" after Sir Howard Davies claimed it was "not that difficult". The boss of NatWest said that people would "have to save more" but suggested the system had simply reverted to how it "used" to be. Housing campaigners criticised his claim while shadow chancellor Rachel Reeves branded Sir Howard "out of touch". When asked about the comment, the Chancellor referenced the much higher mortgage rates compared to 18 months ago. He said: "We know that makes it a real struggle for people trying to buy their first home." He insisted the way to deal with the problem was to continue to focus on cutting inflation.

The Independent (06/01/2024)  

The National Association of Property Buyers says that only one London neighbourhood will see its residential properties rise in value this year. It says that Rotherhithe is set to benefit from the high demand for living space in the area compared to the "low-key" plans for building houses in the area creating a shortage and so driving up prices. Rotherhithe benefits from parks such as Stave Hill Ecological Park, which overlooks the Canary Wharf skyline; it is also well connected to the rest of the capital, with an Overground station, and a Jubilee line stop at Canada Water. 

My London (02/01/2024)  

UK house prices fell 1.8% over the course of 2023, according to Nationwide’s House Price Index. Month-on-month, prices were flat compared to November at an average of £257,443. Nationwide said consumer confidence "remains weak", despite some mortgage rates starting to fall, while also noting that the number of housing transactions has been running at around 10% below pre-pandemic levels. The lender’s report suggests there are “encouraging signs” emerging for potential buyers, with expectations pointing to moderate inflation and interest rates. However, Robert Gardner, Nationwide’s chief economist, said a “rapid rebound in activity or house prices in 2024 appears unlikely.” "If the economy remains sluggish and mortgage rates moderate only gradually, as we expect, house prices are likely to record another small decline or remain broadly flat (perhaps 0 to -2%) over the course of 2024," he added. 

City AM (29/12/2023)   Financial Times (29/12/2023)   The Guardian (29/12/2023)   The Times (29/12/2023)  

The number of homes sold to first-time buyers in the UK has been steadily increasing for almost a decade, with 28% of properties sold to them this year. Despite challenging market conditions, first-time buyers have shown resilience and have even outnumbered experienced movers in 28 local authorities, particularly in London and surrounding areas. A survey by the Skipton Group revealed that 70% of first-time buyers are willing to make compromises, with the size of the garden being the top compromise. The research also highlighted that first-time buyers in London are more likely to receive financial support from their parents for their deposit. The average household income of first-time buyers has increased by 14%, indicating their increased buying power. 

The Express (30/12/2023)   The Sun (30/12/2023)  

Halifax, the largest mortgage lender in the country, has cut interest rates on several of its deals, raising hopes for lower home loan costs. Other lenders owned by Lloyds Banking Group, such as Scottish Widows and BM Solutions, have also reduced their prices. Halifax said it was cutting rates by up to 0.92 percentage points for product transfers and 0.83 on remortgages. It now offers a two-year fix at 4.81% for those with 25% equity in their home. Leeds Building Society followed Halifax by announcing a string of cuts of up to 0.49 percentage points. David Hollingworth, of L&C Mortgages, said rates had been dropping "at pace" and added: "That trend looks as though it could accelerate further as swap rates have fallen further over the festive break." He said that after the reduction by Halifax "it would only be a matter of time before others do the same.” The average 2-year fixed residential mortgage rate is now 5.93%, down from 5.94% at the end of 2023, while the average 5-year fixed residential mortgage rate is now 5.54%, down from 5.56%. 

Daily Mail (02/01/2024)   Evening Standard (02/01/2024)   The Daily Telegraph (02/01/2024)   The i (02/01/2024)   The Times (02/01/2024)  

A predicted fall in base rates is expected to fuel a rebound in the property market, according to analysts. Falling mortgage rates and the possibility of the Bank of England cutting borrowing costs are set to reverse the dip in property values. Steadily falling mortgage rates and an expected surge in customer demand will push up house prices by 5% in 2024, according to estimates from Pantheon Macroeconomics. Capital Economics said that another year of declining house prices could be “avoided altogether” as the economy improves. The Bank's ratesetting monetary policy committee is expected to cut interest rates, with market estimates pointing to a reduction of one percentage point. Interest rate cuts will push down mortgage rates, leading to a surge in average house prices. Despite low levels of transactions, experts do not expect significant falls in house prices in 2024. 

The Times (03/01/2024)