Category Archives: Property

‘We’re kicking ourselves that we didn’t do a five-year mortgage fix in 2021’

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Anguished families talk about how the Bank of England’s 13th consecutive interest hike is affecting them – and their fears for the future

Liam, 36, a senior IT manager and married father-of-one from Newcastle upon Tyne, is one of millions of homeowners whose mortgage payments will rise even higher after the Bank of England on Thursday put up the base interest rate to 5% – a 15-year high.

Together with his husband, Liam bought his four-bedroom house in 2019 for £269k, and the couple’s three-year mortgage deal, refixed at 1.64% in 2020 just before the first lockdown, expired in March.

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UK homeowners face huge rise in payments when fixed-rate mortgages expire

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More than 2.4m deals are ending in 2024, raising fears of financial timebomb

More than a quarter of UK homeowners on a fixed-rate mortgage are heading for sharp increase in monthly payments before the next election, in a financial timebomb that will rock the Conservatives just as voters prepare to choose the next government.

With the Bank of England expected to increase its key interest rate next week for the 13th time, figures shared with the Guardian by UK Finance, the banking industry trade body, show more than 2.4m fixed-rate homeowner deals will expire between now and the end of 2024.

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Labour says ‘Tory mortgage penalty’ costs homeowners extra £7,000 a year

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Opposition finds fallout of Liz Truss mini-budget has raised average mortgage interest payments by £150 a week in two years

Homeowners are being hit with a “Tory mortgage penalty” of £7,000 a year with interest rates triple what they were two years ago, according to Labour.

Pat McFadden, shadow chief secretary to the Treasury, blamed what he called the “reckless economic gamble” taken by the Conservatives during September’s mini-budget when Liz Truss was prime minister.

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Housebuilders cut back on construction as UK mortgage rate rises spook buyers

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Work on residential building sites slips in May to weakest level since 2009

Britain’s housebuilders are cutting back on the construction of new homes amid signs that potential buyers are being spooked by the prospect of increases in mortgage rates over the coming months.

The latest report on the construction sector found that work on residential building sites slipped in May to the weakest level since 2009, apart from when sites were locked down during the Covid pandemic.

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Holiday lets nearly negate supply of new homes in tourist areas, study shows

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Campaigners say second homes and holiday lets are taking homes away from residents in hotspots such as Devon and Cumbria

The supply of new homes in some tourist hotspots is being almost completely negated by the rise of second homes and holiday lets, analysis has revealed.

In the Copeland area of the Lake District, which includes the beauty spot of Scafell Pike, there were 426 new homes created in the last three years. Over the same period, 407 existing homes were converted to commercial holiday lets or second homes.

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Agreed house sales in UK at highest point this year, says Zoopla

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But property website warns that rebound in activity could be hit by rising mortgage rates

More prospective house sellers are returning to the UK’s property market, pushing agreed home sales to their highest point of the year in May, according to Zoopla, although it warned that the rebound in activity could be knocked by rising mortgage rates.

House prices have fallen by 1.3% nationally over the past six months, the property website found, but the speed of price falls has been decreasing as buyer confidence slowly improves.

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UK homeowners and first-time buyers warned to brace for 5%-plus mortgage rates

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Lenders forced to raise fixed-term deals after latest inflation figure pushed swap rates upwards

Households looking for a new mortgage deal have been warned to expect 5%-plus fixed-rate deals in the coming weeks, after Wednesday’s inflation figures sent the money markets back into turmoil.

Nick Mendes, the mortgage technical manager at the broker John Charcol, said on Thursday that he doubts that there will be any two-year fixed-rate mortgages and probably few five-year deals priced at less than 5% in the coming weeks, as lenders are forced to reprice their mortgages upwards.

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House prices need to fall relative to income, Keir Starmer says

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Labour leader accuses Conservative government of killing the dream of home ownership

House prices need to fall in relation to people’s incomes, Keir Starmer has said, in a sign the Labour leader is willing to take on the objections of existing homeowners to get more people onto the property ladder.

Starmer told the British Chambers of Commerce annual conference on Wednesday that he believed prices should come down to make homes more affordable as he accused the Conservatives of killing the dream of home ownership.

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UK mortgage lender to offer first 100% loans since 2008 crisis

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Skipton building society aims product at renters who cannot save enough for a deposit

A leading lender plans to launch a 100% mortgage aimed at would-be first-time buyers who cannot save for a deposit, the first since the 2008 financial crisis.

Standard home loans where the borrower does not have to put down a deposit used to be fairly commonplace but the last was axed in the wake of the financial crisis.

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UK house prices rise for first time in eight months

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Nationwide expert hails ‘tentative signs of a recovery’ as buyers’ confidence improves

UK house prices rose by 0.5% in April after seven months of declines, according to Nationwide building society.

The modest increase took the average price of a home to £260,441 last month, from £257,122 in March. Compared with April last year, prices were down 2.7%, after a 3.1% annual decline in March.

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Duke of Westminster’s property firm pays £50m dividend despite profits drop

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Boss of Grosvenor, which owns swathes of Mayfair and Belgravia, warns of ‘more pain’ for commercial property market

The Duke of Westminster’s property company, which owns swathes of London’s exclusive Mayfair and Belgravia districts, has paid out a £50m dividend despite falling profits.

The boss of Grosvenor, the duke’s £11.5bn property empire, warned of a period of stagflation and that UK interest rates and inflation could stay high for longer than expected, resulting in “more pain” for the commercial property market.

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Asking price of properties popular with UK first-time buyers hits record

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Average of £224,963 for homes with one or two bedrooms is 2% higher than a year ago, says Rightmove

Those people hoping to get on to the UK housing ladder are facing record asking prices, as calm returns to the sector after last autumn’s mini-budget spooked the markets.

Rightmove, the property portal, reports that the average asking price of properties popular with first-time buyers – those with one or two bedrooms – has hit a record price of £224,963 in the last month. That is 2% higher than a year ago, even though higher mortgage rates have made homes less affordable.

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Stately home featured in James Bond films goes on sale for £75m

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Denham Place in Buckinghamshire, which once housed M’s office, being sold by multimillionaire Mike Jatania

A 13-bedroom grade-I listed stately home that featured in the James Bond films Live and Let Die and The Man with the Golden Gun has been put up for sale with a price tag of £75m – which would make it one of the most expensive properties ever sold outside London.

Denham Place, which is set in 17 hectares (43 acres) of Buckinghamshire parkland designed by the 18th-century landscape architect Lancelot “Capability” Brown, is being sold by the multimillionaire cosmetics tycoon Mike Jatania.

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Private landlords in England get £1.6bn a year welfare for ‘non-decent’ homes

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Sadiq Khan describes figures from City Hall analysis as a scandal, with London the worst affected region

Private landlords in England are earning £1.6bn a year in housing benefit in return for providing “non-decent” homes, in what Sadiq Khan has described as a scandal.

The capital is the worst affected region, with £500m in welfare money going on privately rented homes that are in a state of disrepair, cold, damp, lacking modern facilities or do not meet health and safety standards, according to City Hall analysis.

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More house price drops expected despite signs of market stabilising

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Rics monthly poll shows new buyer inquiries in UK are flat as volume of agreed sales falls further

UK house prices are expected to continue to fall despite surveyors’ expectations that the housing market will stabilise over the next 12 months, a study has shown.

The Royal Institution of Chartered Surveyors’ (Rics) monthly survey, which measures the proportion of surveyors reporting new buyer inquiries against those saying they fell, found the net balance was -29% in March, almost flat on the -30% recorded in February.

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Salcombe locals priced out by most expensive seaside homes in UK

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Average cost of property in Devon town reached £1,244,025 last year, driven by second home owners

“Don’t hate me,” said Theo Spink of the view from her office on Tuesday afternoon, “but the sun is shining, there’s a gentle breeze, people are arriving for Easter, eating ice-cream. It’s all rather charming.”

If the town of Salcombe, situated on the neck of a narrow estuary in south Devon, sounds idyllic, that is because “it really, really is”, she said. “When the sun shines, you could be in the Mediterranean. It is that beautiful.”

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Tougher second homes regulations come into force in Wales

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Council tax and planning changes aim to make housing more affordable for those on local incomes

Radical measures giving councils in Wales a raft of extra powers designed to stop second homes hollowing out communities, especially in coastal and rural areas, have come into force.

Local authorities across Wales are using the powers to increase the amount of council tax that second home owners must pay and will also be able to bring in changes to planning rules to make it harder for houses and flats to be snapped up as holiday boltholes.

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Planning applications in England fall to record low in housing blow

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Experts say developers deterred by changes to planning system brought in by successive Tory governments

Planning applications in England have fallen to their lowest level in at least 16 years, according to figures published this week by the levelling up department that highlight the scale of the country’s housing crisis.

Local authorities received fewer applications to build new buildings or improve old ones in 2022 than at any point since before 2006, the earliest year for which the government provides statistics.

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UK homeowners still better off than renters despite spike in interest rates

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Average monthly cost of owning 3-bed home is £500 a year less than renting, but the gap is narrowing

Homeowners in the UK are nearly £500 better off a year than renters, according to new research from Halifax.

The average monthly cost of owning a three-bed home for first-time buyers is now £971, which is £42 lower than the average cost of renting an equivalent property, the mortgage lender said. Renters pay on average £1,013 each month – 4% more.

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UK house prices could be stabilising despite falls, say surveyors

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Rics data for February shows improvement in new buyer inquiries and sales

The UK housing market remains in decline but there are some signs of stabilisation, with an improvement in new buyer inquiries and sales last month, according to surveyors.

Many told the Royal Institution of Chartered Surveyors (Rics) that a return of optimism, and lower than expected interest rates, had given the housing market some hope for the coming months after a sluggish start to the year.

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