Docklands News

The average cost of a home in the UK has fallen at its fastest rate in over 12 years, with property values £6,000 lower than the previous year. House prices dropped 2.1% in the 12 months to November 2023, according to the Office for National Statistics (ONS). The fall in house prices continues to accelerate, with annual rent increases remaining at record levels. Average house prices decreased in England to £302,000 (a 2.9% drop) and fell in Wales to £213,000 (down 2.4%). The typical property value increased in Scotland to £194,000 (a 2.2% annual rise). Average house prices increased by 2.1% annually in Northern Ireland to £180,000. Within England, the North East recorded the smallest decrease in average house prices in the 12 months to November 2023 (falling by 0.4%), while London saw the biggest drop in average house prices (down by 6%). However, experts said the data was several months out of date and that confidence in the market had improved since. Separate figures from the ONS showed UK rental prices rose 6.2% in the 12 months to December 2023 - the joint highest annual percentage change since data collection began in January 2016.

Daily Mail (17/01/2024)   Financial Times (17/01/2024)   The Independent (17/01/2024)   The Times (17/01/2024)  

Four more mortgage lenders, including NatWest, HSBC, TSB, and Metro Bank, have reduced their mortgage rates. This brings the total number of lenders that have cut their rates since January 1st to almost 50. The lowest five-year fixes are now around 3.79%, while the lowest two-year fixes are closing in on the 4% mark. NatWest has cut rates for home buyers and first-time buyers by up to 0.4 percentage points, while HSBC has cut rates by between 0.05 and 0.4 percentage points. TSB has also announced rate cuts, and Metro Bank has reduced its product transfer rates for existing clients. Mortgage brokers believe that two-year fixed rates are unlikely to go much lower than they currently are due to market expectations for interest rates. However, some experts are optimistic that sub-4% two-year fixes could be just around the corner. 

Daily Express (16/01/2024)   Daily Mail (16/01/2024)   Evening Standard (16/01/2024)  

Monthly mortgage repayments in the UK have increased by almost £200 since the Bank of England raised interest rates two years ago, according to official figures. On average, indebted households are now paying an extra £2,220 per year, resulting in a total of £20bn more being spent on housing costs. The average mortgage payment reached £903 in December, rising by £100 from the previous year. Martin Beck, chief economic adviser to the EY Item Club, said mortgage payments have risen more rapidly than earnings since the pandemic struck, hitting families' spending power. He said: "Even strong wage growth has not been sufficient to compensate for higher mortgages. Things are probably going to get worse as wage growth slows at the same time as mortgage payments continue to climb, reflecting the fact that 1.5m households are going to refinance this year at higher rates".

The Daily Telegraph (13/01/2024)  

According to a new survey from Nationwide, 84% of people expect this January to be the toughest yet financially due to Christmas spending added to debt from the cost of living crisis. More than half (52%) believe January is the time of year that causes the most financial stress. While 51% blamed Christmas spending for January being a tough month, 43% highlighted energy costs as a factor. Added debt due to the increased cost of living was a significant issue for 37%. 

The Independent (15/01/2024)  

Halifax's House Price Index reveals that UK property values increased by 1.7% in 2023, beating expectations. While some regions experienced significant drops, others saw an increase, providing positive news for homeowners. Overall, average house prices rose by 1.1% month-on-month in December - the third consecutive monthly rise. The average house price in December 2023 was £287,105, up from £282,305 the previous year. Kim Kinnaird, director of Halifax Mortgages, attributes the growth to a shortage of properties on the market rather than buyer demand. Northern Ireland saw the biggest yearly increase in house prices by far. The average price of a home there in December 2023 was £192,153 - up 4.1%. Scotland was in second place, with the average price of a house there at £205,170 - up 2.6%. South East England recorded the biggest fall in prices. The average price of a home in the region in December was £376,804 - down 4.5%. 

Financial Times (06/01/2024)   The Daily Telegraph (06/01/2024)   The Guardian (06/01/2024)   The Independent (06/01/2024)   The Times (06/01/2024)  

More than one in 10 borrowers in Britain, around 1.6m, are locked into five-year fixed mortgages taken out during the pandemic property boom, meaning they could escape the mortgage crisis unscathed. They are not due to refinance until 2025 or after, when analysts now expect interest rates will have reverted to far more manageable levels. Analysis shows that more than 75,000 borrowers are also signed up to fixed interest periods of more than five years. In addition, more than half of homeowners in Britain do not have a mortgage, which provides another layer of protection for the housing market from distressed sales caused by high borrowing costs. David Hollingworth, associate director at L&C Mortgages, said: “The rates have shot up because there is something of a lag period. The big benefit of that is as rates have risen rapidly many [borrowers] have been protected from those increases. There's a lot who will be coming towards the end of their fixed rate. The most unfortunate ones would have already come to that point and had to refinance".

The Daily Telegraph (10/01/2024)