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London’s prime property market is continuing to struggle amid political uncertainty and higher stamp duties, despite increased demand from overseas on the back of the weak pound. More than half of homes in central London's most exclusive boroughs were withdrawn from the market in Q2 of 2019, according to Lonres. The figure has risen steadily since 2014, when it ranged between 30 and 40%. Marcus Dixon, head of research at Lonres, said that changes to stamp duty in 2014 and 2016 and the uncertainty surrounding the EU referendum in 2016 had hit the market. "Indeed, since 2016 more properties have been removed from the market due to a withdrawal than a sale," he said.
The Times (16/09/2019)
July 2019 saw almost 2,000 more first-time buyers join the property ladder compared to the same month last year, according to official data. UK Finance data revealed that there were 32,640 new first-time buyer mortgages completed in July, some 5.8% more than in the same month last year. The number of people moving house remained similar year on year. UK Finance said there were 32,710 home-mover mortgages completed in July, just 1.4% more than in the same month in 2018. This means that in July, there were just 70 more homeowners moving house than there were first-time buyers completing a mortgage on their first property. Meanwhile, there were 5,800 new buy-to-let home purchase mortgages in July, an increase of 5.5%. Remortgages with additional borrowing slumped 7.1% in July, while pound-for-pound remortgages also fell 12.9%.
Daily Mail (17/09/2019) The Times (17/09/2019)
Ultra-long mortgage deals are leading to homeowners unwittingly paying tens of thousands of pounds more in interest payments, according to industry experts. There has been an increase in the number of mortgages of 35 years or more and high house prices have forced borrowers to pay back their loans over a longer period in order to keep monthly repayments at a manageable level. However, industry experts have warned that consumers may have sleepwalked into these deals without realising the true cost, as thousands of loans were taken out without adequate financial advice. An analysis by Quilter, the wealth manager, revealed that an average first-time buyer who purchases a house worth £193,701 will pay £80,000 more if they spread repayments over 35 years than over the traditional term of 25 years.
The Sunday Telegraph (15/09/2019)
A series of major developments, plus a new market square, are breathing new life into Canning Town, with £3.7bn being spent to create 10,000 new homes and make improvements to its transport infrastructure. Around 650 new homes apiece have been built at Rathbone Market and East City Point respectively; they will be joined by another 1,100 dwellings at Hallsville Quarter, opposite Canning Town station. Homes in the development’s current phase, the 18-storey Discovery Tower, start from £550,000 for a two-bedroom flat. Elsewhere, at Western Gateway close to the ExCeL London convention centre, Mount Anvil is working on Royal Docks West, where a two-bed apartment can be had from £685,000. Looking to the future, Berkeley Homes has been granted planning permission for a 4,000-home development at Stephenson Street where, by 2029, it is anticipated that almost 4,000 abodes will house around 10,000 people in towers up to 377ft tall.
Evening Standard (04/09/2019)
A Chinese property developer has threatened to stall further investment in a £1.7bn regeneration project at London’s Royal Albert Dock until there is certainty around the outcome of Brexit. Advanced Business Park says it is reviewing the future of the scheme, its first development outside China, after being hit by slow sales and lettings activity caused by uncertainty around Brexit. Chairman Xu Weiping said that the company's board "will not make a decision so easily about continuing to invest" in the next phase of the project: "They will need to further assess the future development of the UK."
The Times (09/09/2019)
The cost of moving home in the UK has reached a record £10,414, rising to £24,585 in London, a study by conveyancing firm Reallymovingreveals. Homeowners pay stamp duty of £4,625, estate agent fees of £3,356, £1,490 for conveyancing, £408 in surveys, £480 to a removal firm and £55 on an energy performance certificate. However the sum is less for first-time buyers, who dodge some fees such as stamp duty, and pay £1,613 on average and £5,684 in the capital.
Daily Mirror (11/09/2019) The Sun (11/09/2019)