Docklands News

Data from Moneyfacts shows that 10-year mortgage deals are now the cheapest on the market. The average rate on a 10-year fix is currently 5.78% and while this marks a jump from the 2.99% average recorded a year ago, the increase is significantly less than for shorter-term fixes. Over the same period, the average rate on two-year fixes has nearly tripled from 2.25% to 6.47%, while five-year rates have climbed from 2.55% to 6.29%. Nick Mendes of broker John Charcol said more buyers would have to turn to longer-term fixes as they could become the only way to buy or remortgage. 

The Sunday Telegraph (16/10/2022)  

House prices in Tower Hamlets fell 12% in the 12 months through June, according to an analysis of UK Land Registry data by Bloomberg. The median price paid for an existing home in the borough was £460,368 in June. 

Bloomberg (12/10/2022)  

According to data from LonRes, asking prices of London's most expensive homes have been slashed since the Chancellor's mini-budget last month sparked turmoil in the mortgage market. The number of properties for sale in the centre of London with price reductions jumped by 76% in the last week of September compared to the same period in 2021. Prime London sale prices in September were up just 0.7% year-on-year and 2.4% compared to pre-pandemic levels – a significant contrast to the rest of the country. 

The Daily Telegraph (10/10/2022)  

House prices across the UK fell for the second time in three months in September, according to the latest data from Halifax. Prices declined 0.1% in September to an average of £293,835 as they retreated slightly from the record high of £293,992 in August. Halifax also expects “significant downward pressure” on prices over the coming months as the cost of living crisis bites and mortgage rates rise further. Home values had already dropped back in July, which marked their first fall in more than a year. For the third month in a row the annual rate of growth slowed with prices now 9.9% higher than they were this time last year. That compares with annual growth of 11.4% in August and 12.5% at the peak back in June. According to Halifax, London remains the region where prices are growing slowest, up 8.1% year-on-year. Prices are rising fastest in Wales, where home values are 14.8% above where they were this time last year. In Northern Ireland prices are up 10.9% over the past year and in Scotland they have risen 8.5%. A separate analysis of UK Land Registry data by Bloomberg found that, in the 12 months to the end of June, house prices in Tower Hamlets fell 12%, with the median price paid for an existing home in the borough at £460,368

BBC News (07/10/2022)   City AM (07/10/2022)   Daily Mail (07/10/2022)   Financial Times (07/10/2022)  

House Buyer Bureau claims it could take the UK property market nearly seven years to recover when it comes to reversing a decline in house prices. The property purchasing specialist analysed house price data across the UK market in the lead-up to, and the duration of, the last property market crash. The research revealed that the property market peaked in September 2007, eight months before the recession hit. At this point, the average UK house price was £190,032 and it wasn't until August 2014 that the property market recovered and returned to this level. As a result, it took 83 months - almost seven years - for the UK property market to go full circle from the point property values started to drop until they returned to their pre-financial crisis high. 

Daily Express (11/10/2022)  

Experts have warned that middle-aged borrowers who are forced into longer mortgages because of rising interest rates risk ruining their retirement. Recent house price growth has already triggered a spike in older borrowers taking out longer-term mortgages to bring down monthly costs. In January and February, 478 borrowers aged over 40 took out a mortgage with a term of 35 years or more, according to official data from the Financial Conduct Authority, compared with 162 in the same period last year and 88 in 2020. Karen Noye, of mortgage broker Quilter, said the spike in middle-aged borrowers taking out 35-year mortgages was "concerning" as they risked having to budget for repayments in retirement. 

The Daily Telegraph (07/10/2022)