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House prices rose at their slowest annual rate since 2013 in May, continuing the slowdown seen since the UK voted to leave the European Union. The Office for National Statistics said that average UK house prices rose 3% in the year to May, the slowest annual rate since August 2013, compared to 3.5% in April. The average house price in the UK was unchanged from April at £226,000, and stood at £479,000 in London, the most expensive region. The average fell 0.4% in the capital, while rising 6.3% in the East Midlands and 5% in the West Midlands. In the North East they were up 1.3%, in Scotland 4.9%, 1% in Wales. Economists at PwC said they expected London house prices to continue falling this year and next, while forecasting overall UK growth of about 3% per year over the next decade.
BBC News (18/07/2018) Daily Mail(18/07/2018)
Mortgage lenders are offering hundreds of pounds in cashback to lure borrowers, as with mortgage rates near record lows, it is difficult for them to attract new customers by pushing interest rates down farther. There are currently 1,202 cashback mortgages available, according to research from Moneyfacts, compared to 939 products in May last year. The average cashback sum is £360, but many lenders are offering £500 or £1,000.
The Times (13/07/2018)
The Canary Wharf Group has secured a £30m loan from Metro Bank, for a new private members club on its 97-acre site on the Isle of Dogs. The new club now plans to open in spring 2019, after securing a 60,000 sq ft site, which has been pre-let to the Arts Club Group. The club will be located on Middle Dock, and feature 17 guest rooms for club members and guests, as well as multiple restaurants and a roof terrace.
City AM (11/07/2018)
Halifax’s latest house price index shows prices were flat in June, climbing just 0.3% when compared to those recorded in May. The average price of a home in June was £225,654, marking a 1.8% increase on June 2017’s £217,620. This increase fell just short of the 1.9% year-on-year growth seen in May. Comparing quarterly averages, prices between April and June were 0.7% lower than those in the second quarter of 2017. Russell Galley, Halifax’s managing director, said: “Activity levels, like house price growth, have softened compared with the final months of last year”, but added a continuing shortage of properties for sale should keep prices rising.
The Daily Telegraph (06/07/2018)
New figures from UK Finance, the banks' industry body, show that strong remortgaging activity drove lending for home purchases in May. Some 36,000 remortgages were completed in the month, 7.1% up year-on-year. First-time buyer mortgage completions rose by 8.1% to 32,200 compared with May last year, with the total value of lending rising 12.5% to £5.4bn. There were also 31,100 new mortgages completed for homemovers, up 4.4%. Meanwhile lenders issued £700m of buy-to-let mortgages in May, down 22.2% compared with the same month a year earlier. The total number of mortgages issued for BTL properties was 5,500, down 9.8% year-on-year.
The Times (12/07/2018) City AM (12/07/2018) The Guardian (12/07/2018)
The Bank of England should freeze UK house prices for five years to help prevent another financial crisis, according to the Institute for Public Policy Research. The think tank has urged the BoE to introduce a separate new inflation target, arguing that this could lead to house prices falling by around 10% in real terms as other prices and wages continue to rise, making homes more affordable. Under the proposals, house prices would be allowed to increase "only after expectations of constantly rising house prices have been 'reset'".
The Independent (09/07/2018)