This week, the King’s Speech took centre stage as the PM, Kier Starmer, outlined the new curriculum for the autumn term through his royal mouthpiece. This he hoped would clarify his intent to deliver on his election promises and for everyone to fall in line come the new term. Change is coming. Welcome to another UK Property News Recap – 19.07.2024.
Rightmove HPI July 2024
In Rightmove’s HPI for July 2024; it appeared that sellers have begun to pitch prices at a slightly more competitive level, reducing the average new listing price by 0.4% in July, in the hope of focusing buyers distracted – by the election, sporting features and school being out – to gain possession.
For some sellers this is working; agreed sales were up 15% on last year and buyers intending to move remains consistent at 3%, but for cash-strapped first-time buyers only a base cut and a government incentive will encourage them to abandon their defensive position and play forward. Due to this the property portal, along with many estate agents, remains confident of a more buoyant Autumn market.
Lloyds repurposes disused commercial stock
Lloyds Banking Group sees an opportunity to off-load its unprofitable commercial stock by repurposing it for “affordable” and social housing, starting with its decommissioned data and office space in Pudsey, West Yorkshire.
At the same time the lender plans to turn landlord, increasing the reach of its Citra Living Private Rental arm by investing in rental blocks that local authorities will manage, offering 80% off market rents.
Kings Speech – Labour sets out housing plans
Labour, keen to kick-start house building declared their autumn curriculum in the King’s Speech. Nimbys who previously blocked development are to be put in their voting place by the head, PM Kier Starmer, who is revoking their privileges except for stylistic input and instead giving councils and mayors greater legal powers to identify sites with the “presumption in favour of development”. Any stalling and ministers will be primed to intervene.
Other measures included:
- A planning and infrastructure Bill – to streamline planning and rework rules on compulsory purchase of land
- A Renters’ Rights Bill – to ban no-fault evictions and extend Awaab’s Law to private renters
- A draft Leasehold and Commonhold Reform Bill to curb ground rent for existing leaseholders and ban forfeiture over small debts.
ONS – UK private rents and house prices in July 2024
Rental inflation continued to slow in June 2024 while house prices, for the third consecutive month, clawed back some lost 2023 ground, increasing 2.2% in the 12 months to May 2024, to make the average house price £285,000.
During this time, House Prices rose highest in Scotland; prices increased by +2.5% annually closely followed by Wales which rose +2.4% and then England by +2.2%; where the average house price remains highest at £302,000.
Average UK rents though subdued when compared to previous growth, continued to stretch renters, increasing 8.6% in the 12 months to June 2024. Here prices increased the most in England up 8.6%, the average rent now costing £1,310 a month. Then Scotland, + 8.4% = £959 and then Wales with an 8.2% increase = £743 a month.
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Canary Wharf reimagined
Qatar Investment Authority placed an expensive bet on Canary Wharf, spending an estimated £400-800mn to overhaul 8 Canada Sq, currently leased by HSBC, into a mixed use building to attract a combination of tenants to make it profitable once more.
Clarion turnover and surplus for 2023.24 falls 10%
You can increase housing targets, but where is the motivation if building isn’t financially viable?
Clarion reported a 10% drop in its turnover and surplus for 2023/24. As a result, they lowered their completion target from 3,000 units per annum to 1,828 and 1,799 completions in 2024/25 and 2025/26 respectively.
CHAPS has a meltdown
On Thursday, the Bank of England’s CHAPS system went down for a few hours, causing many homeowners keen to complete on their house purchase to be left sweating over a bank transfer. Luckily, within hours, the problem was resolved enabling many a move across the country.
And that concludes another UK Property News Recap – 19.07.2024. If you have any comments or suggestions, please get in touch here.
