Sir Howard Davies prompts criticism after Radio 4 comments
The Chair of NatWest, Sir Howard Davies, has drawn fire this week after stating on BBC Radio 4 that he believes it is “not that difficult” for people to get on the housing ladder.
He did recognise that people were “finding it difficult to start the process”, but warned of “very easy access to mortgage credit”.
His comments have been met with some scepticism, with Ben Twomey, Chief Executive of campaign group Generation Rent, saying: “What planet does he live on? This is astounding to hear from a senior banker.”
Meanwhile, Katy Eatenton, a mortgage and protection specialist with Lifetime Wealth Management, described Sir Howard as “totally out of touch with reality”.
The remarks came as the Halifax revealed a rise in UK house prices for the third consecutive month.
The mortgage lender’s house price index for December reported a monthly rise of 1.1%, with property prices growing by 1.7% overall in 2023.
The typical UK home now costs £287,105, just over £3,000 more than last month.
Halifax also predicts a fall in house prices of between -2% and -4% in 2024.
As we move through 2024, the UK property market will continue to reflect the wider economic uncertainty and buyers and sellers are likely to be naturally cautious when considering making a move.
Kim Kinnaird, Director, Halifax Mortgages
While wage growth is now above inflation, helping to ease cost of living pressures for some and improving housing affordability, interest rates are likely to remain elevated for as long as inflation remains markedly above the Bank of England’s target.
Meanwhile, Bank of England data has revealed that the number of mortgage approvals for residential purchases rose from 47,900 in October 2023 to 50,100 in November; a 4.5% monthly increase.
However, despite the increase in approvals, the annual growth rate for net mortgage lending reached just 0.3% in November.
And latest figures from HM Revenue and Customs has found that UK housing sales in November fell by -22% over the preceding year, and have fallen for the third consecutive month.
Seasonally adjusted estimates show that 84,600 property transactions were recorded in September, 81,770 in October and 80,780 in November.
Construction activity has also fallen, according to the latest S&P Global / CIPS UK index, but at a slower pace.
Overall output in the Purchasing Managers Index shows a score of 46.8 in December, below the 50.0 growth threshold.
Housebuilding remained the weakest-performing sector, registering a value of 41.1 (Nov: 39.2).
Starmer reiterates housing pledge as former Tory adviser prompts green belt debate
Labour leader Sir Kier Starmer has again voiced his intention to unlock housing and reform the planning system, in a speech held in Bristol this week.
In a year which is expected to see a General Election, albeit in the second half of 2024, Starmer said that his party would overhaul the planning system so that it was “no longer blocking the homes we need”.
Starmer also said that Labour would “get Britain building again,” adding: “you can’t get an affordable home [under the current Government], but with Labour you can.”
Meanwhile, former Tory adviser Nicholas Boys Smith has stated that not all of the green belt should be “preserved in aspic for ever”, as he warned that many young people are being priced out of buying a home.
We have not built enough over the last five, 10, 15, 20 or 30 years. As a society we have fallen out of love with the future and we have…under both political parties failed to build enough homes.
Nicholas Boys Smith
Clearly we need to look at the quality of land within green belts and need to think which of this should be preserved.
In other news…
Warranty and insurance provider NHBC has launched its Technical Standards for 2024, with updates across Parts 3 to 8, including changes to engineered fill, updates to internal masonry walls and guidance on heat pumps.
More local authorities are asking for a biodiversity net gain of more than 10% for new schemes, according to a report by Carter Jonas.
The property consultancy’s Q4 2023 research has revealed that 17 of 206 local authorities had this policy emerging through their local plan review.
Mandatory biodiversity net gain of 10% will become a legal requirement by the end of January.
Housing View 