Savills reports year on year declines in London residential land values, with Central London down 7.2% and Outer London down 12.3%. Slower sales, build cost inflation and Gateway 2 delays are squeezing viability, so many buyers are waiting for the Autumn Statement and Greater London Authority measures. Demand is strongest for income producing sites near stations under 18 metres tall. Meanwhile office land has been steadier, with Central London up 2% in the past six months and Outer London flat.
Finance
Bank of England reduces the Bank Rate to 4.5%
5 February 2025
The Bank of Enland’s Monetary Policy Committee voted 7–2 on 5 February 2025 to reduce Bank Rate by 0.25 percentage points, to 4.5%, citing continued progress on disinflation but persistent inflation risks. CPI inflation was 2.5% in Q4 2024, is forecast to rise to 3.7% by Q3 2025, and then ease toward the 2% target. The Committee will remain cautious and closely monitor supply, demand, and inflation developments to guide further decisions.
Halifax House Price Index shows an annual increase of UK house prices by 2.3% in July 2024
7 August 2024
In July 2024, the Halifax House Price Index showed that UK house prices increased by 0.8%, on a monthly basis, resulting in an annual growth of 2.3%, the highest since the start of the year. The average house price is now £291,268, up by over £2,200 from the previous month. London property averaged £536,052, up 1.2% compared to last year.
Bank of England cut base rate from 5.25% to 5%
1 August 2024
The Bank of England’s Monetary Policy Committee (MPC) voted by a majority of 5 to 4 to reduce the Bank Rate from 5.25% to 5%. Four members preferred to keep the rate at 5.25%. Inflation was at 2% in May and June 2024 and is expected to rise to 2.75% in the second half of the year and then return to the 2% target again.
Savills July 2024 property auction
23 July 2024 | Online
The Savills July 2024 property auction includes the following development opportunities.
A two-storey detached building comprising four flats on Stockwell Lane, SW9 0SS, situated 0.3 miles from Stockwell Underground station. The guide price is £600,000.
Two self-contained flats over the raised ground and lower ground floors of a building in Chalcot Gardens, Belsize Park, NW3 4YB, with planning permission for conversion to a three-bedroom, 1,873 sq ft flat. The guide price is £1.8m. A second and third-floor flat in the same building, with an area of 1,496 sq ft, is available with a guide price of £1.55m.
A former bank building situated on the corner of Woodwarde Road and Lordship Lane, East Dulwich, SE22 8LZ, with a total GIA of 428 sq m (4,603 sq ft). Development potential subject to planning. The guide price is £975,000.
A detached bungalow on a 3-acre site on Wise Lane, West Drayton, UB7 7ET, with development potential subject to planning. The guide price is £1.8m.
The auction includes unmodernised houses in Camberwell SE5 0NJ, London SE1 9EQ, Blackheath SE3 8NG, East Dulwich SE22 9JH, Peckham SE15 5AF and Bermmondsey SE16 3RS.
Hines and architects Foster + Partners to create a 1 million square feet mixed-use destination at Bankside, London
13 April 2024
International developers Hines have secured approval from Southwark Council for a new office and residential development at 18 Blackfriars Road on a 2-acre site that has been undeveloped for 20 years. The buildings, designed by architects Foster + Partners, are intended to be fossil fuel-free, 100% electric and Net Zero carbon in use, with 95% of the heat requirement served by ground source heat pumps. [Read more…] about Hines and architects Foster + Partners to create a 1 million square feet mixed-use destination at Bankside, London
Bank Rate maintained at 5.25%
9 May 2024
The Bank of England’s Monetary Policy Committee (MPC) voted by a majority of 7-2 to maintain the Bank Rate at 5.25%. Two members preferred to reduce the bank rate by 0.25% to 5%. Twelve-month CPI inflation fell to 3.2% in March from 3.4% in February. Monetary Policy will remain restrictive for sufficiently long enough to allow inflation to return to the 2% target.
Nationwide indicates a 0.4% monthly drop in UK house prices in April 2024
1 May 2024
According to Nationwide, UK house prices fell 0.4% in April 2024 after considering seasonal effects, slowing the annual rate of increase from 1.6% in March 2024 to 0.6% in April 2024. House prices are now 4% below the all-time highs of summer 2022.
Savills Q1 2024 research shows first signs of recovery for prime outer London homes
25 April 2024
According to research by Savills, prime residential property values in outer London increased by 0.8% in Q1 of 2024. The strongest performers were houses in Battersea, Clapham, Ealing, Fulham and Victoria Park. Prime central London property prices increased by 0.1%, the first increase since mid-2022. Sales volumes across all residential properties in London are 15% above pre-pandemic levels and 24% up on last year.
Bank of England holds rates at 5.25%
1 February 2024
The Bank of England’s Monetary Policy Committee (MPC) voted by a majority of 6-3 to keep the Bank Rate at 5.5%. Two members preferred to increase the rate by 0.25% and one preferred to reduce it by 0.25% to 5%. Twelve-month CPI inflation fell to 4% in December 2023 and is now expected to fall to the 2% target in the second quarter of 2024, but increase again in the third and fourth quarters.
Savills research highlights challenges for developers
18 January 2024
Savills ‘Market Pressures’ report concludes that London developers face a challenging market with a 41% decline in new build sales below £1,000psf in the past year. Private starts on-site are now 60% below the 2015 peak. The end of Help to Buy and higher interest rates contribute to this decline. Current new home deliveries at 34,985 are just 41% of housing needs, pointing to a challenging future. Prospects for improvement hinge on a predicted interest rate drop in mid-2024. Savills
Bank of England holds the Bank Rate at 5.25% for the third consecutive time
14 December 2023.
The Bank of England’s Monetary Policy Committee (MPC) voted 6-3 to maintain the Bank Rate at 5.25% for the third consecutive time. Three members voted to increase it by 0.25% to 5.5%. 12-month CPI inflation fell from 6.7% in September to 4.6% in October.
Bank of England maintains Bank rate at 5.25%
2 November 2023.
The Bank of England’s Monetary Policy Committee (MPC) voted 6-3 to maintain rates at 5.25%. Three members voted to increase the Bank Rate by 0.25% to 5.5%. Twelve-month CPI inflation fell to 6.7% in September, well above the 2% target, but is expected to continue to fall sharply to 4.75% in 2023 Q4, 4.25% in 2024 Q1, and 3.75% in 2024 Q2, and to the 2% target by the end of 2025.
Savills reports 39% decline in residential development land transactions in the UK in the third quarter of 2023
26 October 2023.
The Savills third-quarter 2023 report on residential land in the UK reveals a 39% decrease in transactions, fewer sites entering the market, and a 22% decrease in planning consents in England. The sites in highest demand are those ready for immediate construction.
Residential land values in Central London have fallen by 8% over the 12 months leading up to September 2023, and in Outer London, the decline is even steeper at 15.6% during the same period. [Read more…] about Savills reports 39% decline in residential development land transactions in the UK in the third quarter of 2023
Allsop November 2023 residential property auction
2 November 2023 | Online.
The Allsop November 2023 residential property auction includes the following lots:
High Street, Windsor SL4 1LN. A freehold vacant former bank building with development potential. GIA of 473 sq m (5,084 sq ft). Guide price £1.4m+.
Albert Road, East Barnet EN4 9SH. A freehold development site occupied by a semi-detached house and detached building. Site area of 400.54 sq m (4,311 sq ft). Guide price £950,000+.
Stuart Crescent, Wood Green N22 5NJ. Freehold former social club and detached building. Planning permission for 5 mews houses and 7 flats, 2 further houses and commercial space, with a total proposed GIA of 2,000.95 sq m (21,538 sq ft). Existing GIA 1,892.53 sq m (20,271 sq ft). The site is 0.16 hectares (0.4 acre). Guide price £4m+.
Bank of England holds rates at 5.25%
20 September 2023
The Bank of England’s Monetary Policy Committee (MPC) voted by a majority of 5 to 4 to maintain the Bank Rate at 5.25%. Four of the members voted to increase the rate to 5.5%. The 12 month CPI inflation was 6.7% in August down from 7.9% in June.
Bank Rate increased to 5.25% in August
3 August 2023
In the August meeting of the Bank of England’s Monetary Policy Committee (MPC) the members voted by a majority of 6-3 to increase the Bank rate by 0.25% to 5.25%. Two members preferred to increase the rate by 0.5% to 5.5% and one preferred to leave the rate unchanged at 5%. Twelve month CPI fell from 8.7% in May to 7.9% in June.
UK Bank Rate increased from 4.5% to 5%
22 June 2023
The Bank of England’s Monetary Policy Committee (MPC) voted by a majority of 7-2 to increase rates by 0.5 percentage points to 5%. Two members preferred to leave the rates unchanged at 4.5%. Inflation measured by Consumer Price Index (CPI) was 8.7% in May, unchanged from the April figure. The MPC will adjust rates to return inflation to the 2% target.
Bank of England increases interest rate to 4.5%
11 May 2023
The Bank of England’s Monetary Policy Committee (MPC) voted by 7-2 to increase the Bank Rate by 0.25% to 4.5%. The two members that voted against the rate rises preferred to maintain the rate at 4.25%. The Consumer Prices Index (CPI) inflation was 8.7% in the 12 months to April 2023, which is down from 10.1% in March.
Nationwide HPI points to a rise in house prices after seven consecutive falls
2 May 2023
The Nationwide House Price Index showed that annual house price growth was -2.7% in April, however the monthly figures showed a 0.5% increase. This is the first rise after seven consecutive declines.
Savills research show significantly reduced land transactions in London with downward pressure on values especially in Outer London
19 April 2023
Savills research points to a significant reduction in London land transactions over the last six months. Central London residential land values have declined 5.5% annually but have remained stable over the last quarter, however Outer London values have declined by 9.5% in the six months to March 2023 taking the annual decline to 16%.
The Outer London market has been disproportionately impacted by build cost inflation, slowing sales rates, the end of Help to Buy and rising mortgage rates. For the six months to March 2023 office land values have declined by 17.6% in Central London and 22.6% in Outer London.
Halifax House Price Index for March 2023
6 April 2023
On an annual basis the Halifax House Price Index shows that house prices were 1.6% higher this March, however this is the weakest increase since October 2019. The typical house price is now £287,880, 2% below the peak last August. London prices are just 0.1% higher than a year ago at £537,250.
Nationwide House Price Index points to 3.1% annual decline for the UK in March 2023
1 April 2023
The Nationwide House Price Index reports that house prices in the UK were down 3.1% this March compared to a year ago, and this is the largest annual decline since July 2009. Mortgage approvals were also weak at 43,500 cases in February, almost 40% below the same time last year.
Monetary Policy Committee increases interest rate to 4.25%
23 March 2023
The Bank of England’s Monetary Policy Committee voted 7-2 to increase the Bank Rate by 0.25% to 4.25%; two members preferred to keep the rate at 4%. The MPC will adjust the Bank Rate as necessary to return inflation to the medium term target of 2%. Inflation unexpectedly rose to 10.4% in February.
ONS reports London has the lowest house price increase in the UK
22 March 2023
The ONS UK House Price Index for January 2023 shows that average houses prices rose 6.3% to £290,000 in the 12 months to January 2023. This is down from 9.3% in December 2023. London saw a rise of 3.2% to £534,000, which is the lowest rise in the UK.
Locations surrounding regeneration zones in London benefit from an additional 2% pa increase in property values
16 March 2023
A CBRE report ‘The effects of regeneration on local property values’, analysed 11 regeneration zones in London and concluded that locations within a 10 minute walk benefitted from an average additional 2% increase per annum in residential property prices. The locations analysed were Canary Wharf, Colindale/Burn Oak, Elephant and Castle, Greenwich Peninsula, Kings Cross St Pancras, Nine Elms, Paddington, South Bank, Stratford, Wembley and Woodberry Down. Paddington benefitted the most with a 5.8% increase per annum. The research attributes this to many factors including improved transport links, enhancements to the area’s heritage, retail and green space.
RICS survey reports falling house prices and increased rents in the UK
9 March 2023
The Royal Institute of Chartered Surveyors (RICS) Residential Market Survey in February 2023 reports falling house prices based on their House Price Balance. The House Price Balance is a figure based on the difference between RICS surveyors reporting an increase in house prices and the number of surveyors reporting a decline. Although negative, the figure has improved from -45% in January to -29% in February. With the rental market, the RICS report rent rises due to continued supply and demand imbalance.
Bank Rate increased to 4%
2 February 2023
The Bank of England’s Monetary Policy Committee voted 7-2 to increase the Bank Rate to 4% from 3.5% with the aim to achieve the 2% inflation target while maintaining growth and employment. Two members preferred to keep the rate at 3.5%.
Bank Rate increased to 3.5%
15 December 2022
At the December meeting of the Bank of England’s Monetary Policy Committee the members voted 6-3 to increase the Bank Rate by 0.5% to 3.5%. Two members preferred to keep rates at 3% and one member preferred to increase the rate to 3.75%.
Bank Rate increased to 3%
3 November 2022
The Bank of England’s Monetary Policy Committee voted 7-2 to increase interest rates by 0.75% to 3%. One member preferred to increase the rate by 0.5% and one by 0.25%.
Knight Frank identify 5 UK hotspots for future growth
23 October 2020
Knight Frank have identified property hotspots in the UK with future growth potential. The hotspots are based on existing house prices, house price to earning ratio, housing shortages, and access to services. The resulting locations are Surrey Heath, Fareham and East Herts with either fast trains or proximity to London, Tameside with close proximity to Manchester and Chesterfield, the gateway to the Peak District.
Mortgage approvals increase substantially but still below pre-Covid levels
1 September 2020
The Bank of England July 2020 Money and Credit report confirms that 66,300 mortgages for house purchases were approved in July, up from 39,900 in June. Approvals are still below the 73,700 reported in February 2020.
Land Registry resumes publication of its House Price Index
19 August 2020
The Land Registry has resumed publication of its House Price Index, with the April 2020 data showing prices falling in London by 1.6% for the period March to April 2020, however confirms an annual rise of 2.3% to April 2020. The Nationwide House Price Index showed annual growth for the UK of 1.5% in July 2020, and a monthly rise of 1.7%, reversing the previous month’s fall.
Bank of England instructs sale of historic sports ground in SW15
Priory Lane SW15 5JQ
The Bank of England has instructed Gerald Eve to bring to market a 28 acre site comprising leisure facilities and The Grange, the Bank’s former records office. The site is located within a short walk of Richmond Park and Barnes Common. Offers are invited for the long leasehold of the whole or part of the site. UNAVAILABLE
UK Government cuts Stamp Duty by reducing the threshold to £500,000
8 July 2020
In a ‘Plan for Jobs’ speech the Chancellor Rishi Sunak announced that the threshold for stamp duty was being raised from £125,000 to £500,000 resulting in no stamp duty being paid for transactions below that level. This is a temporary cut effective immediately and running to 31st March 2021. Update 7 August 2020: Savills predict increased demand where finance is not a barrier.
Coronavirus Business Interruption Loan Scheme for loans up to £5m
24 March 2020
The UK government has announced the Coronavirus Business Interruption Loan Scheme, offering businesses loans of up to £5m to help survive the disruption caused as a result of the COVID-19 outbreak. The scheme is operated by the British Business Bank via accredited lenders.
Monetary Policy Committee cuts interest rates to record low of 0.1%
19 March 2020
The Bank of England’s Monetary Policy Committee cut interest rates to a record low of 0.1% at a special meeting on the 19th of March. The aim of the cut is to help UK businesses and households cope with the economic disruption expected as a result of the measures necessary to contain the spread of the Covid-19 virus.
Bank of England reduces Bank Rate from 0.75% to 0.25%
10 March 2020
The Bank of England reduced the Bank Rate from 0.75% to 0.25% and launched a Term Funding Scheme to assist households and businesses to cope with the disruption associated with Covid-19.
Former bank building at Tower Bridge with development potential
185 Tower Bridge Road SE1 2UF
A grade II listed former bank building on Tower Bridge Road SE1 benefits from a positive pre-application response from Southwark Council. The existing building of 9,700 sq ft stands on a plot of 0.041 acres. Montague Evans | UNAVAILABLE
Mayor of London supports rooftop development
27 February 2019
The Mayor of London has supported rooftop developer Apex Airspace by providing a loan of £10m to create new homes above existing buildings. The firm will use the latest technology, using offsite construction methods, to minimise disturbance to neighbouring properties. Apex Airspace
Development Opportunity in the Southbank for Office or Mixed Use Scheme on a 0.42 Acre Site
14-21 Rushworth Street Southwark SE1
A 0.42 acre (0.17 hectare) site within a 6 minute walk of Southwark Station in the Southbank. Planning permission exists for mixed use scheme of 47 residential units and 21,299 sq ft of office space, and more recently permission was granted for a scheme comprising 69,137 sq ft of commercial space. Offers of £20m for the Freehold. Kalmars | UNAVAILABLE
UK Housing Stock Value
UK Housing Stock is Valued at £7.14 Trillion an Increase of 34% over Ten Years
19 January 2018
The total value of housing stock in the UK has risen by £1.82 trillion over the last 10 years, to £7.14 trillion. London accounts for a quarter of the total value, at £1.785 trillion, but only 12% of the homes. London and the South East account for 87% of the total housing value gain over the last 10 years, however house price growth last year was highest in Edinburgh, Birmingham and Barnet. Savills
