Housing market in England and Wales weakening due to Iran war, say estate agents
Fears of higher mortgage rates and rising inflation as a result of the Middle East conflict are leading to a subdued and downbeat housing market, according to estate agents.Demand from potential homebuyers across England and Wales has shown a “noticeable softening” recently, according to a monthly survey of estate agents by the Royal Institution of Chartered Surveyors (RICS).Members have told the professional body that buyers and sellers are becoming more cautious, and many agents have cited clients who are worried about whether inflation and interest rates will rise in the coming months, leading to slower sales, fewer homes on the market, and more price-sensitive buyers.The Bank of England warned last month that interest rates may have to increase in the coming months as “higher inflation is unavoidable” because of the war in the Middle East and resulting jump in oil and gas prices.At the same time, mortgage rates are likely to be affected by the current sharp rise in government borrowing costs, as swap rates – which lenders use to price their fixed-rate mortgages – tend to move in tandem with government bond yields.
Tarrant Parsons, head of market research and analysis at the RICS, said: “Until there is a clearer path for inflation and borrowing costs, activity and sentiment look set to remain subdued, particularly across southern England and London where affordability pressures are most acute.”The RICS said a net balance of 34% of its members said inquiries from new buyers in April had fallen since the previous month.This is a slight improvement on the net balance of 40% who said inquiries had fallen in March, but still “indicative of weak market momentum”.The index measures the difference between the share of agents reporting rising and falling new buyer inquiries.The volume of agreed sales deteriorated in April, with a net balance of 36% of members reporting a fall, versus 35% a month earlier.
Estate agents are pessimistic about this improving much over the next three months.The report added that the flow of new properties being put up for sale was “largely stagnant” over April, while 34% more members reported decreases in house prices over the past three months than increases, marking a “further deterioration” from the -25% reading seen last month.However, there is a widening regional divide in house price growth, with stronger price falls being reported in London, the south-east, East Anglia and the south-west, while the north-west and north of England continued to post marginally positive readings.In the rental market, demand is outpacing supply, as a rising number of landlords leave the sector in face of increasing regulation and higher taxes.RICS members said the level of demand from new tenants has been increasing, with a net balance of 14% reporting a rise over the past three months, while there was a drop in new instructions from landlords to put their properties up for rent.
A net balance of 25% of respondents expect rents to rise over the coming months,The RICS report ties in with results from Savills, the estate agent, which said that it had seen “greater caution” among buyers and sellers in its UK residential business since the onset of the Middle East conflict,The company, which was giving an update to shareholders before its annual general meeting, said this caution has resulted in longer completion timeframes, and transactions overall for the first quarter increased by just 1% year on year,
‘Hold the line’: Burnham tells allies in parliament he still has options to return
Andy Burnham has told Labour MPs they should hold the line and that he has options to return to parliament after several seats identified by his allies failed to materialise.Two seats that backers of the Greater Manchester mayor had described as “nailed on” as recently as Monday night are now out of contention after the MPs concerned got cold feet.Burnham spoke to a number of MPs by phone on Tuesday and assured them that he still intended to seek an imminent return to parliament.The Guardian was told by two MPs on Wednesday that Jeff Smith, who represents Manchester Withington, an affluent suburb of the city, was in talks about stepping aside for Burnham, but his friends denied it. Asked whether he was about to make way, Smith told the Press Association he was not
EU proposes end to ‘five tabs, three apps and a prayer’ for cross-border train bookings
Cross-border train journeys through several European countries are the stuff of many a holidaymaker’s dreams.But the reality of trying to buy the tickets, navigating multiple websites without knowing who can help if a connection is missed, can prove less than relaxing. As one MEP puts it, it can often require “five tabs, three apps and a prayer”.Now, however, the European Commission has proposed that before the end of the decade passengers should be able to buy one ticket for one journey and be better protected when trains are late or cancelled.“Europeans will be able with the click of a button to plan, compare and purchase multimodal journeys across borders while benefiting from stronger rail passenger rights, greater transparency and better protection every step of the way,” the EU transport commissioner, Apostolos Tzitzikostas, said on Wednesday, as he published new rules intended to transform the “excessively complex” experience he said rail travellers met when booking tickets
What is the king’s speech and what is the state opening of parliament?
The king’s speech is the centrepiece of the state opening of parliament, the main ceremonial event of the parliamentary calendar, and the only regular occasion when the three constituent parts of parliament – the sovereign, the House of Lords and the House of Commons – meet. It marks the start of the new parliamentary year,Although delivered by the monarch in their constitutional role as the UK head of state, the speech is written by the government to outline its policies and proposed legislation for the new parliamentary session. Formally called the “speech from the throne” because it is delivered from the throne of the House of Lords, the monarch reads it out in a neutral tone. Whatever their private feelings the monarch must not show any preference for any political party or its policies.The event is taking place as the prime minister, Keir Starmer, fights for his future in Downing Street after heavy losses in the 7 May elections
Online safety campaigners reveal Starmer frustrations after Phillips exit
Internet safety and children’s rights campaigners have accused Keir Starmer of failing to act on proposals to stop children sending and receiving nude images on their phones, after Jess Phillips resigned from the government saying she was tired of seeing “opportunities for progress stalled and delayed”.The Labour politician was one of four ministers who quit on Tuesday and joined more than 80 MPs calling for the prime minister to go.In a coruscating letter she focused on a lack of urgency and boldness in tackling child abuse images, accusing Starmer of failing to take action to stop children being able to take or send naked pictures.She said: “Over a year ago I presented solutions, long worked on by brilliant civil servants, that would end the ability for children in the UK to take naked images of themselves.“We could stop this abuse
Are working-class voters lost to Labour for good? | Letters
It would be helpful for progressive parties and the media to focus more on why so many people voted for Reform UK. Your article (What’s behind surge in support for Reform and Greens across England? Five key takeaways, 10 May) indicates that it gained more support in deprived areas – but this doesn’t answer the question why.What sort of UK do Reform voters want? Do they want councils that reduce local care services for their vulnerable elderly relatives and children, to save a few pennies off council tax? The ending of environmental protections? The scrapping of equal-opportunities policies that protect women and minority groups?When Reform voters are asked about the party’s policies, they fail to articulate much apart from “stop the boats” – because Reform’s plans have very little detail or real‑world application.The Labour government has been in power for less than two years and has delivered the Renters’ Rights Act and the Employment Rights Act, removed the two-child cap on universal credit, increased provision of free school meals and facilitated millions more NHS appointments.The focus on personality-driven politics has left the door open for local governments to be led by privately educated multimillionaires who dismiss the climate crisis and favour cryptocurrency
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