Our monthly property market review is intended to provide background to recent developments in the property markets as well as to give an indication of how some key issues could impact in the future.
Overview
2020 BUDGET PRIORITISES RELIEF FOR STRUGGLING BUSINESSES
As the COVID-19 pandemic continues to rage, many businesses are struggling to cope financially – but small businesses (those with a rateable value of less than £51,000 per year) are deemed to have been the worst hit.
SHOPPING CENTRE GIANT COULD GO BUST AFTER HUGE LOSSES
Intu Properties, which owns Lakeside in Essex and the Trafford Centre in Manchester, among many others, has issued a warning that it may go under if it is unable to raise the funds to keep afloat. As the UK’s retail sector continues to suffer, Intu proved to be no exception and posted losses of £2bn in 2019.
LONDON PROPERTY BOOST CUT SHORT BY COVID-19 OUTBREAK
Prior to the outbreak, the outlook for the London property market was promising, following the Conservatives’ election win in December and renewed certainty on Brexit.
MORTGAGE ACTIVITY
- The value of gross mortgage advances was £73.4 bn in 2019 Q4
- This is broadly unchanged in comparison to 2018 Q4
HOUSE PRICES HEADLINE STATISTICS
- UK house prices increased by 1.3% in the year to January 2020, down from 1.7% in December 2019
- On a non-seasonally adjusted basis, average house prices in the UK decreased by 1.1% between December 2019 and January 2020
- This is compared with a fall of 0.6% during the same period a year earlier