Spring has definitely sprung this week, with a return of some (fractionally) warmer weather and flowers popping up in many gardens across the UK.
Speaking of gardens, we have been discussing the rising popularity of rooftop gardens in new-build apartment blocks. This excellent feature enables those living in urban areas to enjoy the relaxation of outdoor spaces, which is known to boost well-being and residents’ perceived quality of living.
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Now, let’s take a look at all the headlines that caught our attention this week. I always try to summarise the links to save you from having to click through.
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Property News This Week
- UK Houses Get £3,000 Price Boost Amid Market Rebound – According to the latest Rightmove house price index, property prices have risen in the UK by 0.8% this month, representing an average £2,906 price growth. Although this is a little less than March’s usual average growth of 1% over the past 20 years, this year’s growth still indicates a robust market capable of bouncing back amid difficult economic conditions, with many buyers struggling against the historic interest highs and the accompanying cost of living rises.
- Bank of England Remains Positive as Interest Rates Rise Again – As the BoE interest rate rises once again to 4.25, now the highest it has been in 14 years, the head of the Bank of England has voiced his hope for the resilience of the UK economy. The latest rise has come after Swiss lender Credit Suisse was rescued from the brink of collapse, while two US banks fell, causing a “ripple effect” across the world. While the Bank of England is confident that the UK is not at risk of a recession, the current 40-year-high inflation will continue to put pressure on homeowners as we move further into 2023.
- London Now Ranks Just 24th in New-Build Hotspot List – Research by Alliance Fund has revealed that Greater London now sits at just 24th in the nation for the level of new-build market activity as a proportion of total homes sold. This comes despite Greater London having the highest number of new-build sales completed this year. While the number of new-build transactions in London reached a national high of 1,335 new homes sold, representing 11.5% of all new-build sales last year, the area’s new-build market activity as a proportion of all homes sold came in at just 2.1% of total market activity.
- Nearly 50% of All New Buyers Needed Family Financial Support – As figures from Nationwide reveal that house prices across the UK have risen 19% since the onset of the pandemic, it is unsurprising that almost 50% of new buyers recently surveyed by Savills reported needing financial support from their families to make the purchase. A total of £8.8 billion of parental gifts and loans were recorded in 2022, marking an increase of almost £4 billion since 2019. The percentage of new buyers needing family support is expected to grow to 61% this year as the cost of living crisis further impacts people’s ability to save and pass mortgage affordability stress tests.