‘Geopolitical uncertainties’ amid Iran war could slow fall in mortgage rates, says Halifax

UK house price growth slowed in February as value of typical home rose 0.3% to £301,151

Halifax has warned that the US-Israel war on Iran could slow mortgage rate decreases this year, as it said that house price growth eased dramatically in February.

Halifax, which is part of Lloyds – Britain’s biggest mortgage lender – said the conflict in the Middle East was likely to affect global economies, stoke inflation and reduce the likely rate of interest rate cuts that influence borrowing costs for homebuyers.

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UK house prices rise in February as chancellor avoids ‘negative speculation’

Rachel Reeves’ upcoming spring forecast has not led to slowdown, as property tax rumours did in November

House prices in the UK increased in February as Rachel Reeves avoided a repeat of the pre-budget “negative speculation” that depressed the market, as she prepares to present the spring forecast on Tuesday.

The average price of a home rose to £273,176 last month, up by 0.3% from the month before, Nationwide said. It matched January’s monthly increase, and was above analysts’ forecasts of a 0.2% gain. The annual growth rate remained steady at 1%, the country’s biggest building society said.

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Asking prices fall as UK housing market hit by budget speculation, Rightmove says

November drop of 1.8% is biggest for this time of year since 2012, with chancellor’s plans looming

Budget speculation has depressed the UK property market, figures from a leading property website have suggested, with asking prices slipping in the run-up to Rachel Reeves’s much anticipated fiscal set piece on 26 November.

The average new seller asking price fell by 1.8%, or £6,589, month on month in November, the figures collated by the property website Rightmove set out, taking the average price tag on a British home put up for sale to £364,833.

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Generational shift as millennials make up half of new buy-to-let investors in England and Wales

Surprise finding by Hamptons shows age group comprises 50% of all new shareholders in firms set up this year

Millennials now account for half of new buy-to-let investors in England and Wales, signalling a generational shift in landlords, while rents have dipped, according to a report.

It is a surprise finding, as many millennials – people born between 1981 and 1996 – have struggled to afford a housing purchase, which means they are less likely than older generations to own their home. Even so, some have clearly fared better, and millennials are leading the charge in buy-to-let investment, according to analysis of Companies House data by the estate agent Hamptons.

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Tory plan to abolish stamp duty ‘will benefit London and the wealthiest the most’ – as it happened

This blog is now closed, you can read more on this story here

Voting in the Labour deputy leadership election opens today. Lucy Powell, the former Commons leader, is seen as the favourite and, as Jessica Elgot reports, Powell told supporters yesterday that, if she is elected, she will use the post to argue for changes in the way the government is operating. “We can’t sugarcoat the fact that things aren’t going well,” she said.

Powell is no longer a government minister and, if she is elected deputy leader, she will do the job from the backbenches. In an interview on Newsnight last night, Bridget Phillipson, the education secretary standing against Powell, said a Powell victory would be “destabilising” for the party. She said:

[Electing Powell] risks destabilising the party … we best achieve what we need to do together when we have those fierce conversations, including disagreements, behind closed doors.

Members need to understand that there’s a potential challenge around all of that – that if you’re not inside when the big decisions are being made, you’re not at that table, you’re not in those conversations.

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Lifetime of earnings not enough for UK workers to join wealthiest 10%, report says

Research finds it would take average worker saving all their earnings for 52 years to match wealth of richest 10th of society

It would take the average earner in the UK 52 years’ worth of earnings to become as wealthy as the richest 10%, according to new research by the Resolution Foundation.

In a new report, the influential thinktank analyses the Office for National Statistics’ latest wealth and assets survey, which covers the Covid pandemic period of 2020-22.

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UK ministers aim to speed up homebuying by four weeks

Proposed government overhaul of house purchase process looks at shifting some costs from buyers to sellers

Ministers are attempting to cut the time it takes to buy a home by four weeks under new proposals aimed at overhauling the housebuying process.

The UK government will also consult on plans to shift costs from buyers to sellers, including compelling sellers and estate agents to provide buyers with vital information – such as the condition of the home and the scale of any leasehold costs – upfront.

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London homes 500 metres from station ‘command £42,700 premium over those 1,500 metres away’

Nationwide survey in London, Manchester and Glasgow shows pandemic trends may be reversing as more people return to office

People buying homes in London 500 metres from a tube or railway station pay £42,700 more than buyers of similar properties 1,500 metres away from transport hubs, according to new data.

The figures indicate that despite the reshaping of the housing market sparked by the coronavirus pandemic and dramatic changes to working patterns, the traditional estate agent mantra of “good transport links” continues to wield its power over buyers.

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UK lender offers 98% mortgage to first-time buyers – but bars bank of mum and dad

Newcastle building society aims for those with smaller deposits and no help hoping to get on to housing ladder

First-time buyers are being offered the chance to borrow up to 98% of the price of a property – but they cannot get help with their deposit from the bank of mum and dad.

Newcastle building society’s First Step mortgage is designed to help those who have been saving to get on the housing ladder.

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‘Shock’ in store for 350,000 UK households on low-interest fixed-rate mortgages

Those on typical £200,000 mortgages taken out between October 2020 and February 2023 may see costs jump by £3,996 a year this winter

More than 350,000 households who locked in to low-interest fixed-rate mortgages five years ago are expected to see their costs jump this winter as they reach the end of their deals.

Analysis by the bill management app Nous found almost half of mortgages taken out between October 2020 – as the housing market revived after an initial Covid shock – and February 2023 were five-year fixed-rate deals.

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Londoners buying lowest share of property outside capital since 2013

Stalling house prices and shift back to office working are affecting people’s ability to move out of city, say experts

Londoners are buying the lowest share of houses outside the capital in more than a decade as their moving plans are curtailed by a stalling local market and the shift back to office working.

They were behind just 5.3% of house purchases elsewhere in the country in the first seven months of this year, the lowest proportion since 2013, research has found.

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Damage to Labour from Rayner’s resignation is only just beginning

Deputy leader election campaign will distract from Starmer’s reset and winner may well come from left of party

At 9.30am on Monday morning, as MPs made their way back to Westminster, Keir Starmer gathered the entire staff of No 10 in the Pillared Room of Downing Street to tell them they were about to enter the next, delivery, stage of government.

“We go into phase two in good spirits, confident and with conviction,” he told them, as some of those gathered shuffled awkwardly. His remarks, after all, followed a difficult summer during which Labour vacated the pitch to Reform UK and ahead of what is likely to be an even more turbulent autumn.

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Drop in new properties for rent is steepest since Covid, says Rics

Monthly report from surveyors’ body sees ‘firmly negative trend’ that is expected to push up rental prices

The flow of new rental properties coming on to the market has fallen at the fastest rate since the first Covid lockdown five years ago, according to research by Britain’s property surveyors.

Although the demand for properties is steady, there are fewer new rentals from landlords coming available, the Royal Institution of Chartered Surveyors (Rics) found.

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Santander mortgage cap jumps by as much as 24% as bank eases lending rules

Some higher-earning couples with smaller deposits could borrow extra £130,000 as a result of overnight changes

Some couples applying for a Santander mortgage will see the maximum they can borrow increase by £130,000 overnight after the bank loosened its lending rules.

Santander is the latest in a line of lenders to allow some borrowers to access bigger mortgages after intervention by the City regulator and new guidelines from the Bank of England designed to help more people on to the housing ladder.

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Average private rent in Great Britain falls for first time in five years

Lower mortgage rates have helped cool rental sector after years of above-inflation increases in rent, data shows

Average private rents in Great Britain have fallen for the first time in five years as lower mortgage rates helped take some of the heat out of the rental sector, data shows.

Years of above-inflation increases in rents have put the squeeze on many households but the estate agent Hamptons said the average rent on a newly let property fell by 0.2% year on year in July. It was the first annual decline since August 2020, during the height of the Covid pandemic – although this national figure masks wide regional variations.

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New mortgage affordability rules help UK housing market avoid summer lull

Record number of homes for sale has created ‘buyer’s market’ and kept price rises in check, Zoopla report says

The typical summer lull in Britain’s housing market has been avoided amid the availability of bigger home loans fuelling a “buyer’s market”, according to a property website.

Despite the signs of a bustling market, Zoopla said it had halved its house price forecast for 2025 as buyers were taking into account increased stamp duty costs in their offers in England and Northern Ireland.

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Average UK house asking price registers steepest monthly drop for 20 years

Rightmove blames the 1.2% fall in new sellers’ prices on the end of stamp duty discounts and more homes coming on to the market

The average price of homes coming up for sale dropped by the largest monthly amount in more than 20 years in July, according to a property website, after the end of temporary cuts to stamp duty, and recent increases in council tax on second homes.

The average price being asked by new sellers fell by 1.2%, or £4,531, in July compared with a month earlier, to £373,709.

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Bangladeshis linked to Hasina regime appear to have made UK property transactions in past year

Call for asset freezes after figures under investigation in Dhaka employed services of UK law firms and consultants

By the time Bangladesh’s student-led revolution finally toppled Sheikh Hasina, her security forces had already spilled the blood of hundreds of protesters.

Now, almost a year after the country’s autocratic leader fled the former British colony into exile, an interim government is struggling to navigate bitter factional politics and economic turmoil.

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First-time buyers turn from rural areas to Britain’s regional cities

Number looking to move to urban centres up 16% in first five months of 2025 compared with same period in 2015

With the rise of home working and surging house prices in many urban areas, one might have assumed that British cities had lost some of their appeal to homebuyers over the past decade, but it turns out the opposite is the case.

An analysis of the first five months of this year shows the number of would-be first-time buyers in Great Britain looking to move to cities is up by 16% on average compared with the same period in 2015.

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UK mortgage guarantee scheme due to end with no news on replacement

More than 53,000 mortgages have been completed using scheme, which encourages lenders to offer up to 95% loans

A government scheme to encourage UK lenders to offer 95% mortgages is scheduled to end this month, with no word yet on when its replacement will be launched.

The mortgage guarantee scheme went live in April 2021 to help buyers with small deposits get on the property ladder.

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