Docklands News

The average two-year fixed mortgage rate has decreased from 5.93% in January 2024 to 5.48% at the start of 2025, but many are still feeling the pinch. With 1.8m fixed mortgage deals expiring in 2025, homeowners are hoping for more aggressive rate cuts from the Bank of England. However, inflation remains a concern, currently at 2.6%, above the Bank's target of 2%. Bank of England governor Andrew Bailey anticipates four rate cuts in 2025, potentially lowering the Bank Rate to 3.75% by year-end. While some relief may be on the horizon, experts say borrowers should prepare for a slow recovery in mortgage affordability. 

The Daily Telegraph (06/01/2025)  

New analysis by MPowered Mortgages reveals that cash buyers are securing significant discounts when purchasing properties, paying an average of £28,189 less than those using mortgages. This equates to a discount of 9.3% on the asking price, which has increased by 12.4% since September 2022. Stuart Cheetham, chief executive of MPowered Mortgages, remarked: "As the property market heats up and interest rates fall, the number of house hunters using a mortgage is surging and cash buyers are becoming relatively rarer." Cash buyers now represent only 22.4% of transactions, enhancing their negotiating power. The largest discounts are found in North West England, where cash buyers pay 13.4% less. In contrast, cash buyers in London paid £15,344 more than mortgaged buyers, highlighting the unique dynamics of the capital's property market. 

The Mail on Sunday (05/01/2025)  

UK house prices rose 4.7% in 2024, ending the year with an average price of £269,426, according to Nationwide. Northern Ireland saw the fastest price growth, with prices up 7.1% over the year. Values also rose faster in northern England than in the south, although all regions saw an increase. Experts predict the number of property sales will increase over the next few months, ahead of the stamp duty changes scheduled for April, before falling away afterwards. Nationwide's chief economist, Robert Gardner, commented: "Mortgage market activity and house prices proved surprisingly resilient in 2024 given the ongoing affordability challenges facing potential buyers." But he also noted that high property prices relative to earnings and record rental growth have made saving for deposits especially challenging for first-time buyers. Expectations of a gradual reduction in interest rates, potentially starting in February, could ease mortgage costs. However, Bank of England governor Andrew Bailey has warned that "the world is too uncertain" to predict precise rate cuts. 

BBC News (02/01/2025)   City AM (02/01/2025)   The Standard (02/01/2025)   The Times (02/01/2025)  

Super-prime apartments in London are set to become even more luxurious in the coming year, featuring hotel-like amenities such as spas, bars, and co-working spaces. With Knightsbridge's average price at £21.4m, the market remains exclusive, but prices have dropped over 20% since their peak in 2014, making it an opportune time for buyers. Notable developments include The Whiteley, which will house 139 unique homes and a Six Senses Hotel, and 60 Curzon Street, featuring a state-of-the-art spa and wellness centre. Prices for these apartments start at £1.5m and £3m, respectively, with penthouses reaching nearly £30m.

City AM (31/12/2024)  

London is experiencing a significant decline in affordable housing supply, with starts dropping 88% in the year to March, the lowest since records began in 2015. 

Financial Times (28/12/2024)  

PwC's predictions for 2025 indicate a significant rise in house prices, with the average price expected to surpass £250,000 in half of the UK. The firm forecasts a national increase of 3% to 4%, making home ownership increasingly challenging for first-time buyers. In London, average prices may reach £535,000, while the South East could see £380,000. Barret Kupelian, chief economist at PwC, commented: “This year, our predictions show that the UK will undergo subtle yet significant transformation in both its internal and external environment.” Labour has promised to build 1.5m new houses in order to help address the issue. However, by highlighting a persistent lack, PwC has raised questions about whether there are enough builders to support the ambitious aim. 

The Mirror (28/12/2024)