Property & Finance Market Updates - Hosted by Cator Wells

Property & Finance Market Updates - Hosted by Cator Wells

5/22/2025, 7:06:40 AM

*Inflation hits 3.5%* Data from the Office for National Statistics shows that inflation rose to 3.5% in April. This was up from the 2.6% recorded in March and exceeds the 3.3% increase that had been forecast by economists. The Bank of England, which has an inflation target of 2%, has previously said it expects inflation to peak at 3.7% between July and September. The rise came amid increases in energy costs, while higher employer National Insurance contributions and a boost to the national minimum wage have put pressure on companies to raise prices. Monica George Michail, an economist at the National Institute of Economic and Social Research, said inflation could remain high for several months, meaning the Bank of England is likely to only cut interest rates one more time this year. The British Chambers of Commerce said that while April’s increase was expected, "the scale … is concerning." Suren Thiru, economics director at the ICAEW, said April's increase "highlights the brutal hit to household and business finances from April's multitude of eye-watering bill rises and tax hikes." Chancellor Rachel Reeves said she was "disappointed" with the figures.

Property & Finance Market Updates - Hosted by Cator Wells

5/22/2025, 7:06:18 AM

*UK house prices jump 6.4% in March* In March, the average UK house price rose by 6.4% annually, reaching £271,000, according to the Office for National Statistics (ONS). This increase follows 5.5% growth in February, driven by a surge of homebuyers eager to finalise purchases before the end of the stamp duty holiday. The ONS also reported a 7.4% rise in average UK monthly private rents, highlighting ongoing challenges in the housing market.

Property & Finance Market Updates - Hosted by Cator Wells

6/12/2025, 10:34:29 AM

*Property sales expected to rise* According to the Royal Institution of Chartered Surveyors (RICS), a net balance of 25% of property professionals expect an increase in house sales over the next year, the highest level since February. Despite this optimism, 26% reported a decline in new buyer inquiries, marking the fifth consecutive month of decreases. RICS chief economist Simon Rubinsohn said that the Government's affordable housing commitments "should provide greater certainty and support more strategic delivery." Meanwhile, 34% of professionals anticipate a rise in house prices, although current prices appear stable, with 8% reporting a decline in May. The lettings sector is also seeing increased tenant demand, leading to expectations of rising rents. Tarrant Parsons, RICS senior economist, noted that while conditions remain subdued, there are signs of stabilisation in sales expectations, suggesting a gradual recovery may be on the horizon.

Property & Finance Market Updates - Hosted by Cator Wells

5/16/2025, 8:10:33 AM

*Economy grows 0.7% in first quarter* Office for National Statistics data shows that the UK economy experienced growth of 0.7% in the first quarter of the year, surpassing expectations and defying earlier warnings of a downturn. This growth, primarily driven by the services sector, has provided a boost to Chancellor Rachel Reeves, who said: "Up against a backdrop of global uncertainty we are making the right choices now in the national interest." Despite concerns over the impact of US tariffs and rising National Insurance contributions, businesses increased investments to mitigate potential losses. The production sector saw a rise of 1.1%, while international trade contributed positively to GDP growth. However, economists caution that future growth may weaken due to ongoing global uncertainties and tariff implications.

Property & Finance Market Updates - Hosted by Cator Wells

2/6/2025, 8:40:00 AM

*Bank of England expected to cut rates* Policymakers at the Bank of England will meet today to decide on interest rates and are widely expected to back the third rate cut in six months. The Banks Monetary Policy Committee is forecast to lower borrowing by 0.25 percentage points from 4.75% to 4.5%. Simon French, head of research at Panmure Liberum, thinks the BoE will implement six interest rate cuts this year but won’t pivot to faster cuts until late summer. French is somewhat more optimistic about declining inflation than the market consensus, which predicts three cuts in 2025.

Property & Finance Market Updates - Hosted by Cator Wells

2/4/2025, 9:12:20 AM

*Bank of England to cut interest rates as growth stalls* City experts anticipate that the Bank of England will implement a third interest rate cut this Thursday, reducing the benchmark Bank Rate to 4.50%. Sanjay Raja, chief UK economist at Deutsche Bank, said: “Gradualism, we think, will remain front and centre for the MPC given two-sided risks to the inflation outlook.” The Bank's upcoming forecasts are expected to reveal weaker growth and higher unemployment, with growth estimates for 2025 likely revised down to around 1%. Despite anticipated weaker growth, inflation is projected to rise, potentially reaching 3.3% by spring, influenced by increased energy prices and a weaker pound.

Property & Finance Market Updates - Hosted by Cator Wells

2/25/2025, 10:14:49 AM

*Buyers rush to beat stamp duty change* Stamp duty receipts surged by £40m year-on-year in January, reaching £848m, as homebuyers hurried to complete purchases before tax changes come into force on March 31. The nil-rate threshold will drop from £250,000 to £125,000, significantly increasing costs for buyers, with stamp duty bills on an average-priced home set to more than double from £2,028 to £4,528. First-time buyers will also face a reduced relief threshold, while second-home buyers are already affected by a 5% surcharge. Experts warn that while the Treasury has gained £31.3bn from property taxes since September 2022, further tax hikes could negatively impact the market. Jonathan Stinton, head of mortgage relations at Coventry Building Society, said: “Buying a home is about to get a lot more expensive.”

Property & Finance Market Updates - Hosted by Cator Wells

2/4/2025, 9:13:05 AM

*Construction slump challenges Rayner's ambitions* Construction activity in Britain's major cities has significantly declined, presenting a formidable challenge for Angela Rayner, the Deputy Prime Minister and Housing Secretary, as she aims to stimulate a building boom. According to Deloitte's regional crane survey, new project starts fell by 27% in 2023, with the number of homes under construction dropping to 23,673. Despite a 57% increase in completed homes, the sector is hindered by political uncertainty, high interest rates, and stringent regulations. Zoe Davidson from Deloitte noted that the Government's building safety regulations have "added complexity and lengthened timelines" for residential projects.

Property & Finance Market Updates - Hosted by Cator Wells

2/26/2025, 10:09:26 AM

*House prices set to soar* UK house prices are projected to increase by 3.5% this year, driven by lower borrowing costs and a supportive Bank of England, which is expected to cut the bank rate to 3.75% by year-end. According to a poll of 20 housing market experts, prices will continue to rise by 4% next year. Aneisha Beveridge from Hamptons noted: "The slow downward drift in mortgage rates this year should boost prices and sales volumes." However, rental costs are anticipated to outpace house price growth, with a national increase of 4% expected this year. Despite these increases, property values remain constrained by higher taxation and a weak economic backdrop, with inflation projected at 2.8% this year.

Property & Finance Market Updates - Hosted by Cator Wells

1/31/2025, 7:38:51 AM

*BoE poised for interest rate cut* The Bank of England (BoE) is expected to reduce its benchmark interest rate from 4.75% to 4.5% on February 6, as the UK economy shows signs of stagnation. Economists surveyed by Reuters unanimously predict this cut, with a nearly 90% chance of it occurring. Philip Shaw, chief economist at Investec, said weak economic growth meant companies would find it harder to push the cost of tax hikes on to consumers. "That should make it easier for the Bank of England to look through a near-term rise in inflation and deliver more rate cuts than currently priced in."