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According to new research by market analyst PropCast, Walthamstow and surrounding areas have been named as the “hottest” markets for property sales in London. Some 60% of properties currently for sale in the E17 postcode are already under offer or sold subject to contract. PropCast's research also shows that 54% of London is now in a “hot” sellers market, with the capital becoming a seller's market overall in June for the first time since January. Other hot postcodes include E11, Woodfood, Stratford, and various areas in south-east London. On the other hand, Kings Cross and the W1 postcode are among the coldest markets, with only 8% and 12% of properties for sale already under offer or sold subject to contract, respectively.
Evening Standard (03/07/2023)
House prices fell by 3.5% annually in June, according to data from Nationwide Building Society, with this following a 3.4% year-on-year decline in May. Month-on-month, prices were up 0.1%, reversing the 0.1% dip recorded in May. The report shows that the average UK house price in June was £262,239. London saw a 4.3% year-on-year decline in house prices, while southern England saw a 3.8% decline and prices in northern England were down 2.7%. On the year-on-year fall, Robert Gardner, Nationwide’s chief economist, said: “Longer term interest rates, which underpin mortgage pricing, have increased sharply in recent months, in response to data indicating that underlying inflation in the UK economy is not moderating as fast as expected.” He added a “sharp” increase in borrowing costs is “likely to exert a significant drag on housing market activity in the near term.”
BBC News (30/06/2023) The Daily Telegraph (30/06/2023) The Guardian (30/06/2023) The Times (30/06/2023)
The average rate for a five-year fixed mortgage has climbed to 6.01%, adding £1,488 a year to repayments on a typical £200,000 25-year mortgage. According to financial information service Moneyfacts, the average two-year fixed deal is also now 6.47%. The increase follows the Bank of England’s decision to increase the base rate to a 15-year high of 5% as it looks to bring down inflation. The Moneyfacts analysis also highlights how savings rates have not matched the rapid increase in mortgage charges. While the average rates for two and five year fixed mortgages are both above 6%, the average easy access savings rate is 2.45%. Nick Mendes, from the mortgage broker John Charcol, said: "[Most] big high street lenders have already made substantial increases to their rates which means they sit outside of the best buys. Fingers crossed that rates might stop rising soon if swap rates calm down, although we may see increases in the future if there isn't substantial progress in bringing down inflation."
BBC News (04/07/2023) Financial Times (04.07/2023) The Independent (04/07/2023) The Times (04/07/2023)
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London luxury homes in prime locations represent value for money, according to Coutts' London Prime Property Index Q1 2023. The pandemic led to a race for space, with homeowners rushing to snap up properties in areas further out. However, with the peak of the pandemic hopefully behind us, inner central London is regaining popularity, says Katherine O’Shea, real estate investment services director at the private bank. These areas have also had more interest from international buyers, able to benefit from the strength of the dollar. Looking ahead, the number of homes under offer in the first quarter was up 26% compared with the last quarter of 2022 and up 3% compared with the same period last year. |
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The Times (28/06/2023) |
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UK house prices are expected to continue falling until the second half of 2025, according to Oxford Economics. The consultancy predicts that prices will plunge by 11% compared to their peak in 2022, making Britain's property market the longest in the West to experience a downturn. In contrast, other countries, including America, France, Germany, and Italy, are expected to see prices start rising again this year and throughout 2024. |
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The Sunday Telegraph (25/06/2023) |
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Chancellor Jeremy Hunt has announced a deal to ease mortgage pressures on households affected by rising interest rates. The agreement will allow homeowners to have more flexibility over their repayments and discuss their financial situation with lenders without it impacting their credit score. Mortgage holders will be able to temporarily switch to an interest-only deal or extend their loans for up to six months. Banks will also have to wait 12 months after the first missed payment before ordering a repossession. Hunt said the new measures were "very important" for people "worried about their rates going up". |
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Financial Times (24/06/2023) The Daily Telegraph (24/06/2023) The Guardian (24/06/2023) The Times (24/06/2023) |