Tag: Bank of England
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Expert Reactions to Latest House Price Index
As autumn unfolds, there’s traditionally an uptick in property asking prices. This October, however, the increase was modest at best. Rightmove’s House Price Index highlighted a mere 0.5% rise in property asking prices, the slightest seen since 2008 and significantly lower than the 1.4% average increase observed over the past 20 years. The restrained growth,…
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Mortgage Interest: A Growing Burden for Landlords
According to recent data from Hamptons, there’s a financial storm brewing for landlords. Mortgage interest payments have surged by a staggering 40% compared to last year. This upswing means that, as of August, landlords with mortgaged properties are now relinquishing an average of 37% of their rental income to cover mortgage expenses, a substantial increase…
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Post-Summer House Price Growth Slows to a Crawl
The UK’s housing market, typically buoyant following the summer months, is experiencing its most sluggish growth since the financial crisis of 2008. This deceleration is largely attributed to a series of interest rate hikes initiated by the Bank of England, which have significantly influenced buyer and seller behaviours across the board. A Subdued Surge in…
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Sales Dip, Yet Optimism Remains for Q4
The third quarter of 2021 showcased a notable downtrend in the housing sector, particularly in England and Wales, according to Street.co.uk’s latest market report. Residential property sales across England and Wales experienced a notable decline in the recent quarter, with transactions dropping by 12%. This downtrend was not solely confined to completed sales but also…
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London’s Luxury Homes Lure Cash-Rich Buyers Amid Market Slowdown
During a general cooling in the UK property market, the upper echelon of London’s real estate is proving to be an exception. Wealthy buyers, largely unaffected by the mortgage cost hike, are continuing to invest substantial cash in the city’s most luxurious residences, providing stability in what has otherwise been an uncertain time for property…
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Mortgage Rate Cuts are not Fast Enough
The UK’s housing market, a complex and often unpredictable beast, is currently experiencing what can best be described as stagnation, following an extended period of escalating borrowing costs. Despite a recent halt in interest rate hikes by the Bank of England, a move that traditionally leads to lower mortgage borrowing rates, the market hasn’t seen…
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Slight Economic Growth Means BoE More Likely to Hold Base Rate
The Office for National Statistics (ONS) revealed a slight uptick in the UK’s economic performance, with a growth of 0.2% in August. This growth, albeit modest, is significant, especially considering the economy had shrunk by 0.6% in July, a steeper decline than the initial estimate of 0.5%. The Driving Force: Service Sector Interestingly, this economic…
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London Landlords Pivot to Commercial Spaces Amid Residential Market Uncertainty
In the midst of ongoing turbulence in the residential property market, a significant shift is underway in London’s property investment landscape. Recent insights reveal an intriguing trend: landlords, traditionally linked to residential holdings, are now turning their attention to the commercial sector, seeking stability and diversification amid economic upheavals and a transforming urban environment. Residential…
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House Prices Have Fallen 13% in Real Terms
While it’s been widely reported that UK house prices have experienced a modest dip of 2.8% in nominal terms since their peak in March 2022, inflation’s role has largely been underplayed. Actually, when adjusted for inflation, house prices have plummeted by a significant 13.4%, according to comprehensive analysis conducted by Savills using the Nationwide house…
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UK Housing Market Adapting to Higher Interest Rates
The property market in the UK is showing signs of adjustment and recalibration to a higher interest rate environment. This is according to Nicky Stevenson, the managing director of Fine & Country, estate agents. While high interest rates can sometimes hinder investment plans, Ms Stevenson suggests they’re gradually becoming less of an obstacle. It is…