Commercial demand rises after 2023's record low new lending, house prices unexpectedly fall for second month in a row, lenders increase mortgage rates
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Keep on top of the latest property news headlines from the past week.
'Not a great start to the week' as two 'big six' lenders increase mortgage interest rates
With markets suggesting the Bank of England is unlikely to cut interest rates until August, two of the UK’s biggest lenders have raised mortgage rates.
Both NatWest and Santander announced mortgage price increases on Monday.
Impact of Bank of England interest rate hikes wanes as mortgage approvals rise
Despite rates rising in the past week, the general trend has been towards a growth in approvals.
The Bank of England’s data showed that net mortgage approvals reached 61,300 in March, a small increase on February’s 60,500.
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UK house prices fall unexpectedly for second month in a row
Interest rate uncertainty and more expensive mortgages have seen UK house prices fall for the second consecutive month.
The average house price was down by 0.4% on March, costing ￡261,962.
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New lending for commercial real estate fell last year to lowest level in a decade
The Commercial Real Estate report from Bayes Business School shows that new lending for commercial property purchases experienced a substantial year-on-year decline in 2023.
New lending for commercial real estate fell 33 per cent last year, reaching just ￡32 billion – the lowest level since 2013.
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RICS survey shows signs of recovery for the UK commercial property market
Despite these challenges, there is cause for some optimism within the market.
Commercial tenant demand rose in Q1 of 2024, with the industrial demand indicator posting the most positive reading since the mini-budget.
Office demand also rose for the first time since early 2022.
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US investing in London property soars to highest rate in years
The UK, and specifically London, is also seeing increased demand from US investors, who are buying commercial real estate at the fastest pace in eight years.
￡1.9 billion was spent by US-based investors in the first three months of 2024, according to BNP Paribas Real Estate.
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