Latest news with #NathanEmerson
The Independent
08-05-2025
- Business
- The Independent
Bank of England cuts interest rates to 4.25 per cent in boost to businesses
The Bank of England has confirmed a 25 basis points cut to the Bank Rate down to 4.25 per cent, a second such drop this year in an ongoing boost to businesses and mortgage payers alike. Following cuts in February and now May, the base rate is down from a high of 5.25 per cent to a level last seen two years ago in May 2023. While the Monetary Policy Committee (MPC) had been widely expected to bring interest rate down this time, there is a wider possibility for back-to-back rate cuts - while some analysts predict a further three cuts to happen this year, bringing the interest rate down below four per cent for the first time since January 2023. That will still be partly dependent on factors such as inflation, any lingering impact from the Trump tariffs and also domestic business and employment data following April's rise in labour costs - as well as increased household bills. Nathan Emerson, chief executive of Propertymark, said: "Today's news will no doubt be extremely welcome for many, especially given current economic uncertainties. International bodies have recently stated they expect interest rates to fall in the UK as the year progresses. Overall, we hope to see interest rates further continue their downward trajectory over the course of 2025. "The UK housing market has recently been buoyed by Stamp Duty threshold changes leading up to the start of April, and with the busier spring and summer months now here, this base rate reduction should attract even more buyers and sellers to the market and provide greater affordability. "Housing is a central part of the UK economy, and we now hope to see considering the UK Government and the devolved administrations have shown a keen focus on housing growth, is that they look ahead to achieving their individual housebuilding targets to meet growing demand." Businesses habitually look to invest more money in projects or personnel when interest rates are lower, as the cost of taking on debt is in turn lower. Theo Chatha, CFO of Bibby Financial Services, pointed out that more than six in ten smaller businesses (62 per cent) have said they'd 'feel more confident investing' with lower rates - but cautioned against potential future interest rate rises if the UK faces inflationary pressures as a result of Trump tariffs. 'The Bank may need to raise rates again later in the year to curb inflation due to tariffs friction,' he said. 'This threatens to dampen SMEs' ambition – meaning investment plans are delayed further, but SMEs can't afford a 'wait and see' approach to decision making. Against economic uncertainty, businesses that continue to invest and plan for every scenario will stay ahead of the competition.' While this interest rate cut was already largely priced into mortgage markets, the possibility of future interest rate cuts should still see more competitive product rates emerging in the months ahead. Plenty of lenders are already fighting a sub-four per cent battle, a relief to any of those homeowners set to come to the end of a fixed term across the coming months. On the other hand, while loans will also become cheaper to pay off if not linked to fixed interest rates, any cash held in variable rate savings accounts could soon be earning less.
Yahoo
11-04-2025
- Business
- Yahoo
How house prices have changed in each south London borough since 1997
The average house price in south London is now more than £200,000 higher than it was in 1997, according to new data. New data from the Office for National Statistics (ONS) has revealed the housing affordability levels in local authorities all over England and Wales. The data revealed what the median house prices were every year since 1997, and, in south London, house prices have skyrocketed over the years. In 1997, house prices in Richmond were higher than in any other borough in south London, with an average of £88,000. Lewisham was the borough with the lowest average, with homes costing £46,950. We have created a graph which shows how prices in Bexley, Bromley, Croydon, Greenwich, Kingston, Lambeth, Lewisham, Merton, Richmond, Southwark, Sutton, and Wandsworth have changed since 1997. Up until 2000, Richmond and Lewisham remained the boroughs with the highest and lowest average house prices, respectively. By the start of the millennium, houses in Richmond cost an average of £150,000, while Lewisham houses cost an average of £72,500. In 2001, Richmond remained at the top with an average of £165,000, but prices in Lewisham rose and Bexley became the south London borough with the lowest average, with prices around £84,000. By 2005, Bexley and Lewisham had the same average house price of £150,000. By 2008, Richmond homes had an average of £285,750, and Bexley homes had an average of £172,650. Following the 2008 financial crisis, averages in each south London borough dropped. This may have been due to the recession, causing job losses, stricter mortgage lending, and reduced buyer confidence. With fewer people able to secure mortgages and some homeowners forced to sell, demand fell while supply increased, driving prices down. So, by 2009, Richmond prices dropped to £250,000, just £50 more than the average price in Wandsworth. In 2013, Wandsworth overtook Richmond, with houses in the former having an average price of £322,500 and the latter having an average price of £320,000. Wandsworth remained the south London borough with the highest average price of affordable housing until 2019, when the Richmond price reached £450,000, and the Wandsworth price stood at £439,250. This lasted just a year, as in 2020, Wandsworth saw a significant jump to £475,000. This may have been driven by factors such as the impact of the COVID-19 pandemic, which led to shifts in buyer priorities as many sought more space and suburban areas for remote working. Meanwhile, Bexley still had the lowest average price, with £295,000 in 2020. In 2021, the Richmond price reached £481,250, and Wandsworth dropped to £475,000. Since 2021, Richmond has had the highest average price. In 2024, homes in Richmond had an average price of £500,000. Croydon had the lowest average price, with affordable homes standing at £307,500. Nathan Emerson, CEO of Propertymark, a leading professional body for property agents, said: 'These figures suggest that housing continues to play a vital role in the UK economy and that an uplift in housing activity can help generate further economic growth. 'With the Planning and Infrastructure Bill heading through Parliament, this should pave the way for 1.5 million new homes across England and Wales before the next general election and should contribute positively towards stabilising supply and demand levels and help keep pace with predicted population growth across the forthcoming years. 'Although the last Bank of England Money and Credit Report suggested that net mortgage approvals for house purchases decreased slightly at the start of this year, there is currently a strong appetite to borrow in order to purchase a potential new home. 'The same report suggested overall net borrowing rose by £0.9 billion. 'Today's news should deliver a sense of confidence to those considering taking ether their first or next step on the housing ladder.'
Yahoo
29-01-2025
- Business
- Yahoo
Rental market overhaul could push landlords out of sector
Fifty percent of surveyed property agents express concern over the Renters' Rights Bill, according to data from Propertymark, a property professional body. While Propertymark supports many of the protections the bill offers, they believe certain aspects could have far-reaching implications in the sector. They caution that the bill may prove counterproductive if a fair balance between tenants' and landlords' rights is not achieved. The lack of available rental stock is a key concern, and Propertymark warns that legislative changes must not push landlords out of the market or deter new entrants. The Renters' Rights Bill, introduced by the UK Government following Labour's general election victory in July 2024, aims to end 'bidding wars' between landlords, scrap 'no fault' evictions, and allow tenants to keep pets. It also proposes ending fixed-term tenancies, ensuring adherence to a Decent Homes Standard, and creating an ombudsman service for private rented sector landlords. However, Propertymark points out that the bill contains no provisions to boost the supply of new rental properties. They argue that costs and taxes, which impact investors and deter them from investing in the private rental sector, need to be revisited. Landlords have been unable to offset mortgage costs against their tax bill since 2015, a policy Propertymark wishes to see amended. They also suggest retaining fixed-term options, implementing court reform before abolishing Section 21, allowing more pet-friendly properties, and introducing qualifications and regulations for property agents. Nathan Emerson, CEO at Propertymark, said: "The Renters' Rights Bill has provisions that would benefit tenants, and it goes some way towards improving living conditions and providing additional protections. "However, it is important that the private rental market works for all parties involved. "Without a sufficient supply of homes, rents will continue to climb and without wide-ranging support, investment in the private rented sector moving forward may be hindered. "The UK Government must ensure that it prioritises increasing the number of private rented homes so that both tenants and landlords can benefit from a stable and affordable private rental market."
