Docklands News

Homes in Britain have fallen in value by an average of only £3,000 or so over the past year, according to the official measure of house prices. The average price of a house in the UK fell to £287,782 in October, down by 0.7%, which is 1.2%, or £3,411, below the £291,193 recorded in the same month of 2022. In England, prices fell by 1.4% to £306,000, on average, with the northeast the only region to generate a rise, with prices increasing 0.2%. Meanwhile, prices in London fell the most, down by 3.6%. Prices of detached houses were unchanged year-on-year, while semi-detached homes declined in value by 0.3%. Terraced house prices also fell by 2% and flats fell by 2.5%. Anthony Codling, at RBC Capital Markets, said the relatively small drop was "testament to just how robust the UK housing market is." 

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Approvals for new homes in the UK have reached a record low, prompting accusations against Housing Secretary Michael Gove of "surrendering to nimbys" (not in my backyard). The Home Builders Federation (HBF) reported that planning permissions for 2,447 projects in Q3 2023 amounted to 50,316 housing units. These figures reflect a 3% decrease from the previous quarter and a 19% decline from the same period last year. Overall 245,872 units received planning permission in the year to September, the lowest since 2015. Experts say it calls into question the Government's target of delivering 300,000 new homes a year and could mean fewer than 200,000 are completed in 2024. The HBF believes the drop is a consequence of anti-growth policies, and further changes to planning regulations, expected to be announced by Gove, are criticised for appeasing NIMBY concerns at the expense of necessary housing development. 

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The number of new homes put on the market on Boxing Day has nearly tripled since before the pandemic. Rightmove reported a 173% increase in new homes listed by estate agents last year compared to 2019, and a 46% increase compared to 2021. Buyer demand also rose by 250% from Christmas Day to Boxing Day. The holiday period and the start of the new year are popular times for sellers to consider a move. Rightmove highlighted that two of the busiest days for sellers contacting estate agents to value their homes were in January 2023. Tim Bannister of Rightmove expects an upturn in buyer activity and advises sellers to take advantage of the renewed interest. Estate agents anticipate a significant increase in property listings on Boxing Day, as many buyers make decisions about where they intend to live in the coming year. 

Daily Mail  

Analysis by the Royal Institution of Chartered Surveyors shows that the property market saw signs of recovery in November. Its measure of new buyer enquiries rose to a net balance of -14 last month from upwardly revised -25 in October. This marked the strongest reading since April 2022. A measure of forecasted sales over the next three months rose to +6 in November, having come in at -17 in October. Agreed sales were up to a net balance of -11% in November, from -23% in October. Analysis measuring the gap between the share of surveyors seeing rises and those seeing falls rose to -43, up from a revised reading for October of -61. Only a net 10% of agents think prices will be lower in a year's time than they are now. Simon Rubinsohn, chief economist at the Rics, said the survey results were “further evidence that sentiment is a little less negative than previously was the case”, although he accepted that many agents are “still quite cautious”. 

Daily Mirror (13/12/2023)   Financial Times (13/12/2023)   Reuters (13/12/2023)   The Times (13/12/2023)  

UK lending for house purchases is predicted to fall by 8% in 2024, according to a report by UK Finance. The trade association said higher interest rates and household costs will make it harder for people to access mortgage credit. UK Finance said it expects lending for house purchases in the UK will fall from £130bn in 2023 to £120bn next year. Mortgage arrears are forecast to rise from 105,600 cases by the end of 2023 with arrears of over 2.5% of the outstanding balance, to 128,800 by the end of 2024. There were an estimated 4,400 repossessions in 2023, which UK Finance said is "an incredibly low number by historic comparisons". James Tatch, head of analytics at UK Finance, said "2023 was a challenging year for both prospective and existing mortgage borrowers, facing affordability pressures from higher interest rates and the increased cost of living, as well as house prices still at elevated levels relative to income".

BBC News (11/12/2023)   Daily Mail (11/12/2023)   Evening Standard (11/12/2023)   The Daily Telegraph (11/12/2023)  

Halifax has revealed that the average age for a first time buyer in the UK is no 32, up from 30 a decade ago. Data from Halifax's first time buyer report also revealed that Derbyshire Dales in the East Midlands has an average first time buyer age of just 26 with the average deposit sitting at around £33,143. This is a fall of eight years compared to the first time buyer age in 2013 which sat at 34. Halifax says this is the "biggest change" it has seen in its data. Richmond upon Thames has the highest average deposit sitting at £127,493 and had a first time buyer age of 35. Halifax found the priorities of potential first time buyers have shifted as nearly three-quarters of survey respondents have said "current economic challenges" have impacted their plans. A fifth (21%) said they put their buying plans on hold completely and 41% have pushed back their buying plans. Other priorities for first time buyers included paying off larger debts (40%), travelling (31%), and buying a car (27%).

Daily Mirror (11/12/2023)