Docklands News

UK property sales hit new record in June

Property sales in the UK hit a new record level in June, according to figures from HMRC. An estimated 213,120 sales were completed during the month - more than twice the total in May. Some 428,620 house sales took place in the second quarter of this year - the highest quarterly figure since the third quarter of 2007 and the highest total for the second quarter of any year on HMRC's records. Experts say a rush to buy before the end of the stamp duty holiday fuelled the boom, but with demand outstripping supply, prices are expected to keep on rising. London estate agent Jeremy Leaf commented: "These figures clearly illustrate the frenzied rush to the finishing line for buyers to take advantage before the stamp duty holiday drew to a close. However, activity has reduced since, particularly in London where the savings were greatest. Early signs are that sales will be down significantly but we have noticed nearly all of our transactions are continuing with very few renegotiations. This leads us to believe prices will not be markedly different over the next few months." 

BBC News   The Times   City A.M.  

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Women now make up almost half of UK landlords

Women now make up 48% of the 2.6m buy-to-let landlords in the UK according to an analysis by London estate agent, Ludlow Thompson. Their income has also increased almost twice as fast as men's in the last 5 years. Women's buy-to-let income has grown by 27% in five years, rising from £12.7bn to £16.1bn. Whilst the number of male landlords increased by 10% to 1.38m between the 2014/15 and 2018/19 tax years according to HMRC data, the number of female landlords rose by 17% to 1.25m in the same period. “With the gender gap in buy-to-let ownership narrowing, it might not be long until we see a 50:50 gender split amongst buy-to-let investors,” commented Stephen Ludlow, chairman of Ludlow Thompson.

Daily Mail  

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House prices climb 10%

The average property price climbed by 10% in the year to May, with Office for National Statistics data showing that the typical value hit £254,624 as the stamp duty holiday drove demand. The figures, which are based on sales that have been completed and registered, show that homeowners making a move saw the biggest increase in prices, paying an average of £296,872 – 10.7% more than in May 2020. First-time buyers also saw an increase, paying an average of £213,336 in May – 9.5% more than May last year. London continued to be the region with the lowest annual growth for the sixth consecutive month, with property prices growing just 5.2%. The North West was revealed as the property hotspot, with house prices soaring 15.2% over the past year. At a country level, the largest annual house price growth in the year to May 2021 was recorded in Wales, 13.3%. London recorded the slowest property price rise over the year, of 5.2%.

BBC News (14/07/2021)   Daily Mail (14/07/2021)   Evening Standard (14/07/2021)   The Daily Telegraph (14/07/2021)  

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Mortgage lending expected to cool

Banks expect mortgage lending to ease off in the coming months as a result of the tapering of the stamp duty holiday. “Demand for secured lending for house purchases was expected to decrease over the next quarter,” the Bank of England said. Robert Payne, co-founder of Bristol-based Langley House Mortgages, said: "The housing market has boomed this year and we have submitted more mortgage applications than ever before but there is a huge amount of uncertainty in the economy and people need to be vigilant in terms of what they should borrow.” Ashley Thomas, director of London-based mortgage broker, Magni Finance, commented: "With the main Stamp Duty relief now over, demand has certainly reduced and is likely to cool in the months ahead.” Meanwhile, UK banks expect defaults to rise over the coming months as households struggle to service debt taken on to cope with the financial pressures of the coronavirus crisis, new figures reveal. 

City AM (15/07/2021)  

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Britain set to top Europe’s property charts again

The UK's domestic property market is set for a quicker recovery than previously expected, putting Britain on track to reclaim its title as the top destination in Europe for international real estate investors. The property market tends to track the health of the wider economy, and analysts at CBRE predict that the British economy will grow by 7.7% this year, followed by 6.6% in 2022. Previously, they had expected 6.7% and 5.9% respectively. CBRE's Miles Gibson commented: “The resolution of Brexit is one thing and the other is that it is now much clearer what our path out of the pandemic will be.” Before Brexit, the UK was the go-to destination for overseas real estate investors but it fell behind Germany shortly after the referendum. “Now that those uncertainties have been resolved, we expect that, once again, the UK will overtake Germany as Europe’s biggest real estate investment destination,” Gibson added. 

The Times (12/07/2021)  

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Home ownership out of reach for young families

The average age of a renter is now 41 - nine years older than a typical first-time buyer, new research shows, while more Brits live in private rental homes compared to ten years ago. The number of 35 to 44-year-olds renting has increased from 17 to 27%. Only 56% of the same age group are home owners, down from 67% a decade ago, the English Housing Survey shows. It also revealed the number of people owning a second property has risen from 1.81m to 2.44m in the past ten years. For the majority, 39%, this is a holiday home. Meanwhile the average age of someone with a mortgage is 45.6 years old, while those that are outright owners tend to be older at almost 68 years. The intergenerational wealth gap is benefiting some, with 1.13m homeowners saying they had help buying their home with a loan or gift from family. Londoners save more for their deposits: despite the high property prices in London only 13% of first-time buyers in the capital bought with a deposit of less than 10% compared with 27% elsewhere in the country. 

The Times (10/07/2021)  

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