Docklands News

UK house prices are expected to fall in 2024, according to analysts and lenders. The Government's official forecaster predicts a drop of nearly 5%, while lenders expect a smaller decline. Rent prices for newly-let properties are also projected to rise by 5-6%. UK Finance, which represents banks and lenders, said it expected mortgage lending to fall, and for more people to fall into arrears. It predicts UK lending for house purchases will drop by 8% in 2024. Robert Gardner, Nationwide's chief economist, said: "If the economy remains sluggish and mortgage rates moderate only gradually, as we expect, house prices are likely to record another small decline or remain broadly flat over the course of 2024." 

BBC News  

The Conservatives plan to cut the up-front cost of a home for first-time buyers. Michael Gove told The Times that the party would “definitely” have a new offer in place before polling day, in what is expected to be a central element of the party's campaign. Options being considered include Government support for longer fixed-term mortgages and a revival of the Help to Buy scheme. Ministers are also reportedly looking again at stamp duty and some in favour of scrapping the tax altogether, arguing that it distorts the housing market by discouraging people from moving. Gove said: “We have been asking the question, how can we ensure that people with decent incomes who are finding it difficult because of the scale of deposit required can get on to the housing ladder? I don't want to pre-empt anything … but it's about looking at some of the rigidities in the mortgage market which they haven't got in other jurisdictions.”

The Times  

The average house price in London has more than doubled in the 20 years since the release of the film Love Actually, according to analysis by Savills. The average house price in London has surged from £278,000 in 2003 to £705,000 in 2023. Savills also looked at specific areas where the film was set, finding that house prices in St James's ward increased from £491,655 to £1,747,027, and in the West End ward from £585,529 to £3,929,524. The average property transaction value in West Putney increased from £339,441 to £844,308. In the ward of Colville, which includes Notting Hill, the average house price increased from £542,140 to £1,870,682. 

London Evening Standard   The Independent UK  

The impact of Brexit on London's housing market has been revealed in new research. Despite dire predictions of an 18% drop in house prices, real terms prices today are no higher than in late 2015. Central London neighborhoods have seen the most severe slowdown, with house prices falling since the Brexit vote. Meanwhile, outer boroughs have experienced growth, with Redbridge seeing a 30% increase in property values. The decline in London's property market is attributed to reduced interest from wealthy foreign buyers due to the uncertain economic climate following the Brexit vote. Experts also point out that stamp duty and other factors have played a significant role in shaping the housing market in the capital. 

London Evening Standard  

Housing Secretary Michael Gove has employed a panel of experts to review the London Plan and find where property building in the capital can be sped up. Gove accused Mayor Sadiq Khan of focusing too much on affordable housing, leading to delays in new developments. Christopher Katkowski KC, Bedfordshire Tory councillor James Jamieson, architect Paul Monaghan and town planner Dr Wei Yang will review the London Plan, and "identify where changes to policy could speed up the delivery of much needed homes in urban city sites the heart of our Capital", Mr Gove added. They will report their findings to the Department for Levelling Up, Housing and Communities early next year. However, City Hall argued that new analysis has revealed a gulf in the rate of housebuilding between London and the rest of England. Since Mr Khan was elected in 2016, London's devolved planning framework has achieved a rate of housing completions that's 20% higher than the rest of the country, a spokesman for the Mayor said. 

London Evening Standard  

London's property market is experiencing a surge in sales of £10m-plus homes, with almost 200 properties sold in the past year, according to research by Knight Frank. The number of high-end sales is the highest since 2014, when stamp duty changes were introduced. The super-rich are opting for luxury homes in the capital over country retreats, spending over £3.4bn on "super prime" properties. Mayfair, Kensington, and Belgravia are the most popular locations for these transactions. While London's property market thrives, sales of expensive homes in the countryside have declined. The enduring appeal of London as a global "super city" and its relative affordability compared to a decade ago are driving the strong performance. 

The Guardian