Docklands News

The latest figures from Halifax show house price growth in January was unchanged month-on-month, following monthly decreases of 1.3% in December and 2.4% in November. The annual rate of house price growth slowed to 1.9% last month, the weakest increase in three years. The average UK house price is now more than £12,000 below a peak in August, though it still remains some £5,000 higher than in January 2022. Kim Kinnaird, at Halifax Mortgages, said the trend of higher borrowing costs hitting demand was likely to continue in 2023. 

Estate Agent Today (07/02/2023)   The I (07/02/2023)  

The Bank of England’s suggestion that inflation may come under control sooner than expected should send interest rates on five-year fixed mortgages to below 4% in the near future, experts say. The average rate on two and five-year fixes fell from 6.47% and 6.32% at the start of November to 5.44% and 5.2% at the start of this month, according to the data firm Moneyfacts. The Bank rate is now at a 14-year high of 4% after the tenth successive increase on Thursday. The cheapest mortgage now starts with a 3 for the first time since September, with Lloyds and Virgin Money both offering ten-year fixes at 3.99%. Even tracker loans, which are linked to the base rate and will increase in line with it, have fallen from an average of 4.48% at the start of January to 4.39% this month for a two-year fix.

Financial Times (03/02/2023)   The Times (03/02/2023)  

Research by the EY Item Club suggests growth in mortgage lending is set to fall to 0.4% this year, its lowest level in more than a decade. Higher interest rates, a weak economic outlook and falling house prices will dampen demand along with a tightening of banks’ lending criteria. Anna Anthony, UK financial services managing partner at EY, warned: "Stretched affordability will affect loan demand across all fronts and banks should be preparing for low and, in some cases, negative lending growth rates." Lending to businesses grew by 3.7% in 2022, but is expected to fall by 3.8% this year, before returning to growth of 0.9% next year. Dan Cooper, UK head of banking at EY, said UK businesses faced rises in interest rates but much of the borrowing over the course of the pandemic was in the form of government-guaranteed loans with low interest rates. Meanwhile, corporate balance sheets had strengthened as stresses associated with the pandemic eased. 

The Daily Telegraph (06/02/2023)   The Times (06/02/2023)  

Data from Nationwide shows that house prices fell for the fifth consecutive month in January. The price of the average property was £258,297 last month, with this down by 0.6% on December. Year-on-year price growth slowed to 1.1%, down from 2.8% in December. Robert Gardner, chief economist at Nationwide, said the affordability of mortgages is set to "remain challenging" in the short term due to higher interest rates. “Affordability pressures remain particularly acute in London and the south of England, where mortgage servicing costs have risen sharply compared with a year ago,” Gardner said. “Scotland and the north continue to be the most affordable regions but, even there, mortgage payments as a share of take-home pay are at their highest level for over a decade.” 

BBC News (01/02/2023)   Financial Times (01/02/2023)   The Daily Telegraph (01/02/2023)   The Times (01/02/2023)  

Seven in 10 estate agents say home sellers are being unrealistic about what their properties are worth, according to estate agent membership body, Propertymark. Agents say sellers are overvaluing their homes, either because they think they have the best house on the street, or because they want to sell at a price which will enable their next move. Propertymark's latest figures show the number of prospective homebuyers registering with agents fell from 2.5 per available property in December 2021, to 1.4 per property in December 2022 - a 45% decline year-on-year. The average number of viewings per property fell by 71% between April and December 2022. Nathan Emerson, chief executive of Propertymark said: "The largest shift we have seen in the sales market is prices agreed, compared to normal asking prices. The year 2022 started as a seller's market, and ended the year back to normality as a buyer's market." 

Daily Mail (30/01/2023)  

Equity release lending to new customers increased 31% in 2022 compared to the year before, as £6.3bn of cash was tapped from properties. The number of equity release plans taken out over the year also increased 29% taking the total to 52,295, according to equity release broker Key. The typical customer released £106,806 of equity from the value of their home, 2% more than the £104,792 average in 2021. 

Daily Mail (30/01/2023)   Daily Telegraph (30/01/2023)