property - Nedbank

Will rising interest rates slow growth in the UK property market?

As the Bank of England continues to raise interest rates in its battle with persistent inflation, what will this mean for the UK’s residential property market?

Soaring energy prices and crippling inflation are fuelling fears of a recession. As the Bank of England responds by raising interest rates, what impact will this have on the UK’s residential property market?

September 2022 saw the consumer prices index, the UK’s preferred measure of inflation, rise by 10.1% year on year, up from 9.9% in August and back at the 40-year high set in July. We are also yet to see the effects of the 80% rise in energy bills due in October and further large increases expected in January.

The Bank of England continues to respond with aggressive monetary tightening – hiking the base rate of interest from 1.75% to 2.25% in September – the highest level for 14 years. This marks the central bank’s seventh increase since December 2021 as it attempts to get a grip on spiralling inflation. Any increase in the Bank of England’s base rate quickly feeds through to increased loan and mortgage rates, so the cost of borrowing rises.

This situation was exacerbated by the new UK government’s unfunded mini-budget, which sent financial markets into turmoil at the end of September. A rapid rise in gilt yields prompted mayhem in mortgage markets as lenders rapidly withdrew products in response to the soaring cost of funding them. The Bank of England stepped in to stabilise gilt markets, but the political and economic aftershocks are still playing out and the volatility and uncertainty are not good for the housing market.

The more affluent house buyers have certainly not been deterred by rising interest rates. Property group, Savills recently released its five-year forecast for the UK’s prime housing markets, which reflected strong levels of activity, despite the backdrop of international and domestic uncertainty. The firm expects prime central London prices to rise by 4% across 2022 but has forecast better growth of 7% for 2023 as international buyers are expected to return, particularly if sterling continues its downward trend and makes UK property more appealing.

Although annual average house prices in the UK had continued to increase up to June 2022, according to the Office for National Statistics, there are signs they are slowing. The outlook for both interest rates and real incomes remains negative and the impact of the government’s unfunded budget plans will not help consumer confidence. The GfK consumer sentiment indicator, a snapshot of how UK consumers feel about the economic outlook over the next 12 months, was already at a record low of -44 in August.

While rising interest rates, falling consumer confidence and the cost of living are all serious risk indicators, why is their impact on the housing market still muted?

The fact is there are other aspects of the housing market that give grounds for more optimism.

Interest rates are still low

Interest rates while rising fast are still relatively low. Between 1971 and 2022, interest rates have averaged 7.15% – from an all-time high of 17% in November 1979, when Margaret Thatcher’s government was battling inflation, to a record low of 0.10% in March 2020, in response to the COVID-19 pandemic.

Housing supply remains constrained

As we mentioned earlier, demand continues to exceed supply and unless the government has plans for a massive house building programme, this is unlikely to change anytime soon.

Cash buyers and fixed rate mortgages

About a third of homes are bought with cash, and around three quarters of borrowers are protected in the short term by a fixed-rate mortgage. With more than 90% of new borrowers choosing this option, a sizeable majority of borrowers will not feel the effects of the base rate rises until they need to renew their current deal.

More stringent borrowing criteria

As always, the lower end of the market will be most vulnerable to rising interest rates. Although mass repossessions are less likely since lenders introduced more stringent affordability tests in the wake of the global financial crisis, and the current labour market remains tight. Unemployment levels are at an almost 50-year low, at 3.8% for April to June.

The high end of the market remains buoyant

Not everyone is struggling to get by and as the Savills forecasts show, the market in prime locations is expected to remain buoyant, particularly for property above £5 million. This section of the market is less reliant on borrowing so less likely to be affected by further interest rate rises.

We are likely to see a fall in transactions in the wider market, though, as buyers hold back in the face of rapidly rising mortgage rates and escalating energy costs, which could serve to dampen overall demand.

Predicting the future of UK property prices is notoriously difficult because for nearly two decades governments have frequently intervened to boost prices when growth has stalled. However, with soaring energy prices, a cost-of-living crisis and its own political problems to contend with, will this government have the capacity to support homeowners as well?

Opinions vary on how the current economic disruption will play out in the UK property market but, as with any investment, it always pays to take a long-term view.

Clients can borrow against a UK, Isle of Man or Channel Island-based residence, be it a home or an investment property. We also lend against investment portfolios, and loans can be denominated in Sterling, Euros or US Dollars. With clients in 160 countries, we often help clients based outside the UK, and have lent using the same approach across market cycles since 1987.

To find out more about Nedbank Private Wealth’s bespoke lending services, please contact your private banker directly or call our client services team on +44 (0)1624 645000. Or you can get in touch using the links to the forms towards the end of this page.

If you fail to keep up loan repayments, your assets used to secure the loan may be at risk and/or your home may be repossessed. Any examples are for illustrative purposes only. The webinars and Q&A do not constitute an invitation or inducement to buy any financial product or service. None of the content constitutes advice or a personal recommendation. Individuals should seek professional advice, based on their jurisdiction and personal circumstances, before making any financial decision.

Chiraag Patel

Chiraag joined the team in 2021 with responsibility for Nedbank Private Wealth’s lending proposition in the UK. His primary role is to support clients’ borrowing requirements, as well as help clients who have been introduced by mortgage brokers and other property intermediaries.

With 18 years’ experience as an adviser in the property teams of financial services firms, with an emphasis on serving the high net worth market, Chiraag’s previous roles include time as a credit specialist at Santander Private Banking and Barclays.

He holds a Certificate in Mortgage Advice and Practice (CeMAP) and graduated from the Queen Mary University of London with a BSc (Hons).

The lay of the land: property taxes across the UK

Temporary property tax holidays for the lowest property tax brackets came to an end in 2021. We take a look at what property taxes buyers now need to pay across the UK, whether resident or not.

In July 2020, temporary property tax holidays were introduced for UK residential housing. The break aimed to encourage people to have confidence when buying, selling and renovating houses, and provide support for economic growth and jobs.

And while taxes returned to their previous level, changes have been introduced for England and Northern Ireland following the Chancellor of the Exchequer’s ‘mini -budget’ on 23 September 2022.

However, the difference in approaches taken across the country served to highlight how the UK landscape for property tax diverges across its four home nations, deviations often due to the devolved parliaments in Scotland and Wales.

So, while stamp duty land tax is due in England and Northern Ireland, it is the land and buildings transaction tax in Scotland, and the land transaction tax in Wales. And there are other differences buyers should be aware of, which we explain below.

What do you pay where?

England and Northern Ireland

In England and Northern Ireland, at present, no stamp duty is due on the first £250,000 of a property purchase, provided it’s your main residence and you are UK resident. That threshold, however, increases to £425,000 if you’re a first-time buyer and the property you’re buying costs £625,000 or less.

It’s also worth noting stamp duty is progressive and marginal, i.e. different percentages apply to each price band. As such, if the property you’re buying is worth between £250,001 and £925,000 the initial rate of tax is 5% of the final sale value. If that value is between £925,001 and £1,500,000, the tax paid on the ‘chunk’ above £925,001 increases to 10%. Finally, 12% is due for homes on the portion worth more than £1,500,001.

If it is a second home – i.e. you already own a home anywhere else in the world – or an investment property, collectively categorised as ‘additional properties’, you should expect to pay 3% more. A further 2% is also usually due if you are not UK resident and you spend less than 183 continual days in the UK either before or after the completion date of your property transaction. It is also worth noting that you can claim this tax back if you become UK resident within a two-year period of the completion date.

Scotland

The main difference between Scotland and the other home nations is the thresholds and rates currently in place. In Scotland, first-time buyers pay no land and buildings transaction tax on the first £145,000 of a property. Then, if the property you’re buying is your main residence and is worth between £145,001 and £250,000, you’ll pay 2%. If the value is between £250,001 and £325,000, the percentage increases to 5% for that portion. It then reaches 10% for the portion of a property’s value between £325,001 and £750,000 and, again, a 12% marginal rate due on any homes worth more than £750,001.

As elsewhere, additional properties and those being bought by non-resident buyers are taxed at higher rates.

An additional complexity for those buying north of the border is that Scottish properties typically require offers over the value being advertised. Elsewhere, the value advertised is seen as a guide and offers below the asking price may be appropriate, e.g. if the property has been on the market for many months.

Wales

In Wales, the thresholds and rates are different again to those detailed above, and there is no extra relief for first-time buyers. As such, no stamp duty is due on the first £180,000 of a property. If the property you’re buying is your main residence and is worth between £180,001 and £250,000, you’ll pay 3.5% on the portion between that band. If the value is between £250,001 and £400,000, that figure increases to 5%. It then reaches 7.5% for properties worth between £400,001 and £750,000, 10% for properties worth between £750,001 and £1,500,000 and finally 12% for a home worth more than £1,500,001.

As before, additional properties are taxed at higher rates.

To summarise these for home buyers, while noting that Scotland and Wales have not made changes to their stamp duty equivalent taxes (as at the time of writing), we have put together the table below:

Payment due dates

If you’re buying in England or Northern Ireland, you have 14 days from the date of completion – the day when all the contracts are signed and dated, and you get the keys – to file the stamp duty return and pay what you owe. In Scotland and Wales, you have 30 days.

To help you understand how much you’ll pay on a property, we recommend you use the stamp duty tax calculator for England and Northern Ireland, the land and buildings transaction tax calculator for Scotland, and the land transaction tax calculator for Wales.

Meanwhile, if you are non-resident in the UK and buying a UK property to live in, you can reclaim the non-resident surcharge if you become UK resident within two years following the purchase. For those buyers who remain non-resident, it’s worth noting that any gains from UK residential property sales are subject to capital gains tax of 28%, which includes gains due to share ownership in ‘property-rich’ non-UK companies.

For those interested in learning more, it’s worth flagging that Nedbank Private Wealth doesn’t provide individual tax advice, but as a regulated mortgage provider, we work closely with legal and tax advisers. We are also able to introduce you to professional advisers if you do not have one.

As well as helping individuals and companies buy residential property in the British Isles, our award-winning wealth planning support can help you borrow for additional wealth goals, while ensuring your purchase fits with your broader financial plans.

This articles was previously published in August 2022, but updated following the announced change in stamp duty on 23 September 2022.

Chiraag Patel

He holds a Certificate in Mortgage Advice and Practice (CeMAP) and graduated from the Queen Mary University of London with a BSc (Hons).

What’s happening in London’s residential property market?

Many events affect the demand and supply of the capital’s property, and therefore valuations. But what is currently impacting London’s residential property market? What should buyers (and sellers) be aware of?

The creator of the modern dictionary gave us far more than individual definitions for words. Dr Samuel Johnson was also a biographer, critic, essayist, editor, playwright and poet, and left us with hundreds of great quotes. In 1777, he penned one of his most famous statements: “You find no man, at all intellectual, who is willing to leave London. Sir, when a man is tired of London, he is tired of life; for there is in London all that life can afford.” It’s a sentiment that, some 250 years later, still holds true for many. It’s why there is solid demand for London’s residential property.

For others, however, the temptations of the biggest UK city have taken a knock over the last decade, particularly when so many of the creative, gastronomic and intellectual motivations closed down in 2020/21 and some have yet to completely return to normal. So, despite the average house price in the UK increasing by 9.6% in January 2022 year on year, in London that increase was just 2.2%, marking the lowest growth of all the country’s regions, according to the Office for National Statistics (ONS).

However, that doesn’t mean a property that you are eyeing will have increased in value too, given these are based on averages. Trying to set out the characteristics for the ‘average house’ is impossible as it depends on a variety of factors, such as location and the incredible breadth of housing stock. For example, our country’s property is often cited as being the oldest in Europe – probably the world – and is only being replaced very slowly. So while that may translate into a property with ‘character’ for some, for others it spells problems due to the issues related to older buildings. This impacts buyer interest and the sale price.

To help get a handle on just what is happening, therefore, here are three topics we often discuss with clients.

Available housing stock is still limited

Although we may be starting to see the supply of new homes for sale inch higher in some areas of the property market, many believe the market as a whole is still being ‘squeezed’ by the limited levels of stock, continuing a trend that started in the second half of 2021. Data published by LonRes in March for its three prime catchment areas underscores this as the overall number of homes for sale was down 16% versus January 2021, while the figures for rental properties were 67% lower.

And the squeeze in supply is being exacerbated by an increase in demand, as shown by the total transactions that are completing and since home buyers in Q4 2021 paid more stamp duty land tax in England and Northern Ireland than in the entire 328-year history of the tax.

Yet again, the type of property being bought remains a key factor. Again according to LonRes, the number of transactions in its lowest price band (£500,000 to £1,000,000) was still 20% off its 2014 peak in the 12 months ending January 2022. Meanwhile, activity for properties in the £5m+ category is back to similar levels to those in 2014 over the same period.

But, overall, while this makes for a more difficult environment for clients looking to buy (or rent), as there will be a lot of competition for the ‘better’ properties being put up for sale, it’s good news if you own a house to rent out, given this area of the market is the one with the lowest levels of supply. As a result, rents saw annual growth in January 2022 of 22.5% across LonRes’s prime locations.

Is the ‘race for space’ still a factor?

While 2020/21 saw buyers’ preference lean heavily towards houses rather than flats, with particularly strong interest in housing with access to a (private) garden, 2022 may see that trend flatten as buyers realise we are unlikely to be subject to any more lockdowns and the (sometimes significant) price shifts may be enough of a tipping point for buyers to compromise on of their wish list and look at flats.

This demand is also fuelled by the rise of the so-called ‘remorseful’ buyer who left London during lockdown, but is now looking for a suitable foothold, perhaps near the office for their increasingly frequent trips in, and may consider a flat despite the ongoing issues linked to the External Wall System Fire Review (EWS1) certification requirements. And some people want to return having missed the vibrancy of London’s lures, but realise a flat will suffice given how much more constricted your money is in the capital versus beyond the M25.

But while there are a lot of positive consideration points for flats, this has not necessarily developed into a meaningful movement in the market. A recent poll among mortgage brokers published by BuyAssociation, a membership organisation for the property sector, highlighted that some 60% do not believe the desire for larger square footage is over, with just 23% believing the race for space may be coming to an end. This aligns with research from the recruitment firm Randstad UK, published in early March, which asked workers what they missed most about office life when working from home. The most popular response, from 52% of people, was “nothing”!

Rising costs

UK inflation hit a 30-year of 6.2% in February 2022, according to the ONS, and expectations are for it to push higher still given prices were already rising as demand had unwound from the pandemic faster than supply could. And this number probably only includes a little of the impact that the Russian-Ukraine war is having on energy prices and which is forcing up food prices too.

The rising costs may eventually mean that people think twice about stretching to buy anything, especially since inflation had been expected to be a temporary blot on the landscape and UK salary growth had, as a result, generally been held back below headline inflation.

On top of those increases, on 17 March 2022, the Bank of England raised interest base rates for a third time (following rate increases in December 2021 to 0.25% and in February 2022 to 0.5%) and although rates of 0.75% are by no means high, they are at their highest since March 2009, apart for a 19-month period from August 2018 to March 2020 when rates also reached 0.75%. Any increase in the Bank of England’s rates quickly feeds through to increased loan and mortgage rates as the cost of borrowing for lenders rises.

And bank rates are likely to continue to increase given inflation of 6.2% is a long way off the UK government’s set target of 2%. Comments made by the Bank of England’s governor, Andrew Bailey, on 28 March, also back more base rate increases as he linked the rising commodity prices to UK inflation and the need for it to be cooled by higher interest rates.

So what does all this mean for you?

For those in the market for property, you may want to consider – depending on your circumstances – a fixed rate mortgage. Setting the rate for multiple years may mean you are paying more in the future if the premise for increasing rates was to be removed, but given markets had predicted the Bank of England base rate would hit 2% by February 2023, even before Bailey’s predictions, it may prove to be a wise choice. In addition, fixing the rate would also give you certainty over one line of costs over the coming months.

There is also the option to borrow against your investments, which may have benefitted from the general increase in portfolio values over the last few years, through an approach called Lombard lending, or look to finance a property purchase with a combination of the two.

It’s also worth bearing in mind that house prices over the coming year in the capital are still predicated to grind higher by between 2% and 4%, according to LonRes, despite the challenges. And while that doesn’t sound a lot, it masks the details for the different districts. After all, although growth in London as a whole in 2021 was 2.2%, growth in across areas can be very different, as rolling three-month data from the property aggregator Rightmove highlights. It’s data shows Bromley and Chelsea up 11.5% and 10.6% respectively (at the time of writing), while other boroughs had dropped in value, such as Westminster (-1.4%) and Lambeth (-1.3%).

So if you are interested in a property, why wait? Just get in touch as we have a range of mortgage and Lombard lending options available and would be happy to talk through any financing requirements, with your individual circumstances as the basis for the conversation.

Clients of Nedbank Private Wealth can get in touch with their private banker directly to understand how we are helping clients during the current pandemic, or call +44 (0)1624 645000 to speak to our client services team.

If you would like to find out more about how we can help clients borrow against property or investments, please contact us on the same number as above, or complete a form using the links towards the end of the page.

Sources: Nedbank Private Wealth; BuyAssociation; Knight Frank; London’s Surveyors and Valuers; LonRes; Rightmove; Savills; and UK Government.

Your home may be at risk if you do not keep up-to-date with your payments on your mortgage or any other loan secured against it.

Chiraag Patel

He holds a Certificate in Mortgage Advice and Practice (CeMAP) and graduated from the Queen Mary University of London with a BSc (Hons).

What’s happening with London property?

David McFadzean joined Marcus Dixon of LonRes and Mark Francis and Jane James of London’s Surveyors and Valuers to discuss the current state of the London property market, what the stories are behind the news headlines and what homebuyers and investors might expect to see in the coming months.

Following a strong second half to 2020, which carried on during the first half of 2021 due to the stamp duty holiday, you’d have been forgiven for believing that Q3 2021 would be quieter. Instead, the number of homes sold at £2 million or more is up 5% versus Q3 2020 and 21% higher than the 2015 to 2019 average. Prices are on the increase too, with both houses and flats recording annual increases in September. For those looking to renew a rental agreement, or search for a new place to rent, the increased demand has already led to prices rising to pre-pandemic levels given availability across prime London stock has fallen by 68% compared with the same point a year ago.

However, simplistic statements often mask what’s happening in the capital’s property market, as well as in the commuter belt – which has expanded as people have continued to work from home for several days a week.

For a whistle-stop tour of what’s really happening, what’s hot and what’s not, and what homebuyers and investors might want to consider in the coming months, David McFadzean, head of wealth management, speaks to Marcus Dixon of LonRes and Mark Francis and Jane James from London’s Surveyors and Valuers. Join them for a 30-minute webinar, plus extra time for a Q&A, at 12.30pm on Tuesday 30 November.

David McFadzean

David is responsible for spearheading the growth of our wealth management business across the company’s international jurisdictions. Prior to taking on his current role, David was integral in developing the bank’s investment proposition for high-net-worth individuals, trustees and investment consultants. He is also a member of the bank’s executive committee.

He has over 25 years’ experience working for global blue-chip companies in both London and Jersey, and providing investment solutions to a wide variety of clients around the world. Prior to joining Nedbank Private Wealth, David spent 15 years with RBC Wealth Management where he held several senior roles, latterly leading the investment business as managing director and head of discretionary investments in Jersey.

David is a Chartered Fellow of the Chartered Institute for Securities & Investment and a Chartered Wealth Manager.

Island life – what to consider when relocating to the Channel Islands

With the opportunity to work from home, with only occasional trips to the office, more people have looked to move out of London. But what locations are on their list? David Haynes flags the reasons many might choose the Channel Islands, and some aspects of a move that people should be conscious of.

UK house prices have been rising at their fastest rate for more than a decade. But, unlike previous property booms, most of this growth has been outside of London and South East England. The combined uncertainties of Brexit and the pandemic, along with more employees being able to work for significant periods from home, have led many people to re-evaluate their priorities and search for larger homes and more outdoor space. The Channel Islands, in particular, appear to have benefited from this shift.

With their sea-bound locations enabling them to avoid many of the lockdowns linked to the COVID-19 pandemic, the increasing demand for homes on the islands, coupled with limited housing stock and minimal space for building, has led to soaring prices. Reports published in the summer highlight the average house price in Guernsey had gone up to £510,000, just nosing above London at £500,000, and placing it among the most expensive property markets in the British Isles. Only Jersey, with an average price of £574,000, was more expensive.

The reason for the price hike in Guernsey is not just due to its pandemic response. Many locals cite the outdoors life, personal safety, the option for state-run selective education and gourmet hospitality as key reasons for the island’s popularity. In addition, there is the added sweetener of lower tax rates. Guernsey residents pay a flat 20% tax rate on income – an amount which is capped – and does not levy wealth taxes, such as capital gains and inheritance taxes, as well as VAT or goods and services tax.

Those moving to the island, however, need to be aware that the Guernsey property market is more complex than many countries as it has two tiers: a ‘local market’ and an ‘open market’. Local market properties, as the name suggests, are reserved for those who were born or grew up on the island, or have strong family ties. Although they are also open to people whose employer has obtained an employment permit for them, when there is a shortage of suitable ‘local’ candidates for the position.

The open market properties are available to anyone who holds a British or EEA passport, or has the right to remain in the UK. They are also available to other nationalities, who wish to invest in the Guernsey economy and have been granted an entrepreneur or an investor visa. If you are looking to relocate, these will probably be the properties available to you. They are limited in number and, consequently, much more expensive to buy, with only around 7% of the island’s homes listed on the open market register.

Another aspect of property purchases on Guernsey is the legal framework, and specialist advice is important. The island has its own property laws, several of which are influenced by Norman French law, with some of the legal phrases and documents still in French. Another key difference is that the purchase price of a property is split into two elements: the realty cost, which reflects the physical structure and the land surrounding the building, and the personalty cost, which relates to the fixtures and fittings included in the sale. Normally, this split would be 97.5% realty and 2.5% personalty, although it is possible to apply through your advocate for a higher personalty allowance.

This is relevant as Guernsey has a tax on house purchases called document duty, which is payable by the buyer to the States of Guernsey (local government and legislature) and is based on the property’s realty value. The rate is on a sliding scale, starting at 2.25% of the value up to £250,000, before rising to a maximum of 4.50% on the portion between £1,000,000 and £2,000,000. The duty must be paid before registration of the property and the transfer of ownership.

On top of the document duty, there will also be legal fees, which vary depending on the type and age of the property, as well as bond and court fees. This bond is a security taken over the property, which matches the amount borrowed from the bank, and must be registered with the Greffe – the Guernsey Royal Courts – which then assesses the document duty payable on the transaction and acts as the agent for the payment and collection of the duty.

The court fees arise at the final stage of the purchase process as you need to go to the Royal Court to have your property contract passed. A ‘completion date’ is agreed and you are expected to attend in person, along with your advocate. The conveyancing court sits each Tuesday and Thursday at 9.30am, and the dress code should be smart, with no shorts or beachwear permitted.

Those with bigger budgets can also consider Jersey, which topped the list of average house prices in the British Isles and has also experienced a surge of enquiries from people looking to move to the island. In June 2021, it was reported that Brexit had fuelled an increase in interest from the super-rich, with the biggest Channel Island set to record one of its highest numbers of new ‘high-value’ residents in the year. As a result, the property market is booming, with a property in St Brelade recently selling for a record £31 million after two prospective buyers entered a bidding war.

The right to buy residential property in Jersey is also controlled by local laws and restrictions apply. To qualify as a high-value resident, individuals must demonstrate assets in excess of £10 million and an income that is “comfortably and sustainably” over £725,000 a year. In addition to these thresholds, there are also minimum prices for the properties that new high-value residents are permitted to buy. From 1 September 2021, these were increased significantly, up to a minimum of £1.25 million for an apartment and £2.5 million for a house.

Whether you choose the Channel Islands or not, you should always take legal and financial advice before you proceed with any property transaction. And, if you are interested in relocating to the Channel Islands, we have property and trust specialists based in our Guernsey and Jersey offices. Our experienced teams can provide the best possible guidance in navigating the intricacies of the local property markets, and ensure the process runs smoothly for you.

Clients of Nedbank Private Wealth can get in touch with their private banker directly to understand how we can help them help their children, or call +44 (0)1624 645000 to speak to our client services team.

If you would like to find out more about how we can help clients manage their wealth, please contact us on the same number as above, or complete a form using the links towards the end of the page.

Investments can go down, as well as up, to the extent that you might get back less than the total you originally invested. Exchange rates also impact the value of your investments. Past performance is no guide to future returns. Any individual investment or structure is referred to for information only and are not intended as a recommendation, not least as it may not be suitable. Your home is at risk if you do not keep up payments on a mortgage or any other loan secured against it. You should always seek professional advice before making any financial decisions.

David Haynes

David has over 30 years’ experience in the financial services sector. He joined the Jersey office from the Royal Bank of Scotland International in 2000.

Specialising in lending, David works closely with the private bankers in Jersey to develop appropriate lending solutions for their clients. He also looks after his own portfolio of high-net-worth individuals, advising on all aspects of their wealth.

David is an Associate of the Chartered Institute for Securities & Investment.

Q2 London residential property market update

David McFadzean joined Marcus Dixon of LonRes and Rob Cohen of the MJ Group to discuss the current state of London’s residential property market, what’s been behind the news headlines and what to expect in the coming months.

The UK residential property market has hit significant highs and lows during the last 18 months, due to the pandemic, politics and how professional life is changing, but what’s should buyers and sellers be aware of?

On the political front, the rental eviction ban for COVID-19 sufferers ceased on 31 May 2021, and notice periods and property taxation relief are being reduced. Investors and owners, meanwhile, have continued to see property prices and rental yields influenced by flexible working decisions and, while lockdowns were easing, virus variants have continued to dominate news headlines. And there have been other matters also affecting sentiment.

In a session hosted by David McFadzean, head of wealth management at Nedbank Private Wealth, we heard from Marcus Dixon, head of research and data analysis at LonRes, and Rob Cohen, managing director of the MJ Group International. The discussion saw our experts provide an update on the latest market news and views, as well as their predictions for the coming months.

David McFadzean

David is a Chartered Fellow of the Chartered Institute for Securities & Investment and a Chartered Wealth Manager.

Q1 London residential property update

Colin Campbell was joined by Marcus Dixon of LonRes and Rob Cohen of the MJ Group to discuss the current state of and outlook for the London residential property market following the highs and lows of 2020.

The UK capital’s residential property market is currently on somewhat of a rollercoaster ride, with activity driven by the latest headlines, as well as political and economic events.
Join us for 45 minute discussion where our experts provided an update on market news and views, and their predictions for the year ahead.

In particular, we covered the impact the latest lockdown has been having on the capital’s bricks and mortar market, the most recent trends agents have been reporting, what support the March UK Budget might bring, and how this has all been translating into central London property prices.

Colin Campbell, private banker and lending specialist at Nedbank Private Wealth was joined by Marcus Dixon, head of research and data analysis at LonRes, and Rob Cohen, managing director of the MJ Group International.

Tag: property

Will rising interest rates slow growth in the UK property market?

Chiraag Patel,

Interest rates are still low

Housing supply remains constrained

Cash buyers and fixed rate mortgages

More stringent borrowing criteria

The high end of the market remains buoyant

Chiraag Patel

The lay of the land: property taxes across the UK

Chiraag Patel,

What do you pay where?

England and Northern Ireland

Scotland

Wales

Payment due dates

Chiraag Patel

What’s happening in London’s residential property market?

Chiraag Patel,

Available housing stock is still limited

Is the ‘race for space’ still a factor?

Rising costs

So what does all this mean for you?

Chiraag Patel

What’s happening with London property?

David McFadzean,

David McFadzean

Island life – what to consider when relocating to the Channel Islands

David Haynes,

David Haynes

Q2 London residential property market update

David McFadzean,

David McFadzean

Q1 London residential property update

Nedbank Private Wealth

Important information

Chiraag Patel,

Interest rates are still low

Housing supply remains constrained

Cash buyers and fixed rate mortgages

More stringent borrowing criteria

The high end of the market remains buoyant

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About the author

Chiraag Patel

Chiraag Patel

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Biography

Chiraag Patel,

What do you pay where?

England and Northern Ireland

Scotland

Wales

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Chiraag Patel

Chiraag Patel

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Chiraag Patel,

Available housing stock is still limited

Is the ‘race for space’ still a factor?

Rising costs

So what does all this mean for you?

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Chiraag Patel

Chiraag Patel

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David McFadzean,

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David McFadzean

David McFadzean

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David Haynes,

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David Haynes

David Haynes

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David McFadzean,

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David McFadzean

David McFadzean

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