Docklands News

UK banks and building societies have announced new mortgage rates, including a best buy rate for first-time buyers. NatWest is offering a market-beating fixed rate of 4.68% for five years to new customers with a 10% deposit. The next-best rate is Virgin Money's 4.76% rate. NatWest is also launching a best-buy two-year fix for those buying a home with a 25% deposit, at 4.44% with a £1,495 fee. For new customers remortgaging with 40% equity or more, NatWest will offer a best-buy two-year fix at 4.34% with a £1,495 fee. Most major lenders have reduced mortgage rates in recent weeks. Santander and Leeds Building Society are also set to reduce some of their rates. 

Daily Mail (13/08/2024)   Evening Standard (13/08/2024)  

More young people than ever are considering moving in with a friend or sibling as housing costs continue to rise in the UK. With house prices approaching nine times the average salary, many young people are finding it increasingly difficult to get on the property ladder. Research from Lloyds Bank shows that just over half of young people would be willing to buy a home with a friend or sibling. This trend has been picking up in recent years, with more young people exploring non-traditional routes to achieve their housing goals. Shared mortgages have become a popular option, allowing individuals to split the cost of the deposit and make homeownership more affordable. The rental market has also become less appealing for some, prompting them to bypass it altogether and buy a home with a friend or sibling. However, experts recommend seeking legal advice before entering into a shared property purchase to understand the implications and protect future interests. 

The Independent (11/08/2024)  

The average UK house price increased by over £2,200 in July compared to June, following three months of little change, according to Halifax's index. Property experts are optimistic about the housing market, citing the recent interest rate cut by the Bank of England as a potential boost. Amanda Bryden, head of mortgages at Halifax, stated that the average house price in the UK is now £291,268, with an annual growth rate of 2.3%. In London, the average house price was £536,062. Affordability constraints and a lack of available properties continue to pose challenges for prospective homeowners. However, with lower mortgage rates and potential further rate reductions, house prices are expected to continue a modest upward trend. 

BBC News (07/08/2024)   Evening Standard (07/08/2024)   The Daily Telegraph (07/08/2024)   The Guardian (07/08/2024)  

According to Skipton Building Society analysis, nearly 80% of potential first-time buyers in the UK lack the savings needed for a deposit in their local area. The research also found that only one in eight potential first-time buyers can afford to purchase the average first-time property in their area. Additionally, nearly four in 10 renters spend 45% or more of their income on housing costs, making it difficult for them to save for a deposit. London was ranked as the most unaffordable city for both renting and buying properties, while Scotland was the most affordable.  

The Independent (03/08/2024)  

Brokers have stated that following Monday's volatility in the US stock market, mortgage rates in Britain may begin to decline more quickly. Brokers estimate that before the end of the year, borrowers may see mortgage rates as low as 3.5%. Currently, Nationwide and NatWest both offer mortgages with rates under 4%. Worse-than-expected US manufacturing and employment data has triggered a Wall Street meltdown and increased pressure on the Federal Reserve to reduce rates sharply in order to prevent the country from entering a recession. The Bank of England economists reduced the Bank Rate last week, from 5.25% to 5%, marking the first decrease in four years. NatWest has responded to a cut in the base rate by offering a five-year fixed rate mortgage at 3.97%, which is the lowest rate on the market. Other lenders, including Virgin Money, MPowered, Halifax, Leeds Building Society, and Skipton Building Society, have also made reductions.

Daily Mail (06/08/2024)   The Daily Telegraph (06/08/2024)  

Housebuilders have welcomed Labour's plans to build 370,000 new houses, but questions have emerged over whether the industry has the capacity to meet these targets. The last peak in housebuilding was in the 1960s, with just 189,000 homes built last year. Labour plans to reintroduce mandatory top-down housebuilding targets for local authorities and force councils to build on the grey belt. However, the construction industry is facing a skills shortage, with 55,000 vacancies and an ageing workforce. Brexit has also led to a loss of EU workers in the sector. Construction apprenticeships are not filling the gap, and the industry needs to provide more secure work and longer contracts. Steve Morgan, founder of Redrow, noted that two of the country's largest brick makers had mothballed some of their kilns. "You can't just go down to Tesco and pick up bricks. It takes time . . . You can't turn it on like a tap." Barratt chief executive David Thomas predicted that in the first two years of the Labour government, between 180,000 and 200,000 homes would most likely be built, before a surge in the latter half of the parliament. 

The Sunday Times (04/08/2024)