House prices set to rise by £84k

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Here's what we’ve got for you today..

• House prices set to rise

• Leasehold reform ‘years’ not months away…

• Hottest London postcodes

• Best UK city for first time buyers

Let’s dive in

House prices set to rise

The last few weeks have been action packed – new policies, rate cuts and tax hikes for businesses

The Labour Party just dropped its first budget in 14 years, but it didn't bring much to the table for home buyers and sellers.

The one notable change was the bumping up of Stamp Duty on second homes from 3% to 5% 📈 - and this could definitely shake things up for buy to let investors.

But what’s the impact of these changes on the long term housing market?

According to the latest house price predictions from Savills, it might not be as gloomy as some fear. In fact, they’re forecasting the typical home will grow by £84,000 from now until 2029

The property firm now predicts average home values will increase 4 per cent in 2025 and then 23.4 per cent by the start of 2029.

The optimistic outlook is based on the inflation target coming back on track at the 2% mark and forecasts from Oxford economics suggest interest rates will keep dropping over the next couple of years

On the flip side, things are not looking too rosy on the Mortgage front as major lenders like NatWest and Nationwide are increasing their fixed-rate mortgage rates.

This is happening because borrowing costs are climbing, with traders now expecting interest rates to drop more slowly than they initially thought.

Leasehold reform ‘years’ not months away

The government’s promise to "act quickly" to roll out the Leasehold and Freehold Reform Act 2024 stands in contrast with the current reality

This legislation, which grants leaseholders new rights including longer lease extensions, was pushed through during the final days of the previous parliament. 😬

It turns out the changes may take a lot longer to fully implement according to Alice Bradley from The Leasehold Advisory Service.

She reckons we're looking at years, not months, before we see any real reform in leasehold tenure. 

Here’s what you should know:

• The Leasehold and Freehold Reform Act 2024 has many moving parts - and it will take a long time and effort to put together. 

• Even though the Act's been given the royal assent, it needs secondary legislation to actually work. 

• Seven freeholders have launched legal battles against the government to argue their human rights have been infringed by the legislation

Steve Murphy - CEO of  Open Lease dropped some excellent tweets on X about this issue,

We highly encourage you to try and read it http://bit.ly/3YSqkja - it covers different perspectives from leaseholders

Hottest London postcodes

London’s housing market is divided in a way we haven’t seen in years, with East London neighbourhoods seeing an incredible surge in demand, while Central London areas remain relatively quiet.

The hottest area right now is South Woodford, where a remarkable 63% of homes are under offer, according to Propcast’s property demand ratings. 

This puts South Woodford firmly in the “very hot” category, where properties sell quickly, often at or above asking price..

And it’s not just South Woodford—areas like Walthamstow, Chingford, Stratford, and Enfield also in demand, with nine out of the top ten in-demand postcodes in East London.

Meanwhile in Central London, neighbourhoods like Covent Garden, Mayfair, and Earl’s Court are seeing far less demand..

Covent Garden and Mayfair, for example, have only 10% of homes under offer, the lowest in the city and this is impacting price growth in the area 

Here’s a brief overview of some of the most active areas in East London:

• South Woodford, E18 – 63% of homes here are under offer. With excellent schools and a “village” feel, South Woodford is attracting families. Properties average around £625,000, with some family-sized Victorian homes reaching £1.5–£2 million.

• Walthamstow, E17 – As the heart of Waltham Forest, this area is vibrant and evolving. Here, flats start at £375,000, while the average asking price is around £550,000.

• Chingford, E4 – With an average home price of £559,000, Chingford is drawing younger buyers and families seeking more space. Streets like Castle Avenue are especially popular for first-time buyers.

• Stratford, E20 – Stratford is bustling, with the majority of homes being flats at an average price of £475,000.

St. Alban’s named best place to live in the UK

St Albans has snagged the top spot as the best UK city for first-time buyers, thanks to its stellar quality of life score of 94.7 out of 100, according to Wayfair’s latest First-Time Buyer Index.

Lisburn in Northern Ireland and Stirling in Scotland also ranked highly, rounding out the top three..

The index takes into account quality of life and how long it typically takes to save for a deposit.

Six out of the top ten cities, including Coventry and Newcastle-upon-Tyne, are in England, highlighting several attractive options for new buyers.

St Albans won big points for healthcare and safety, while Lisburn boasts low pollution and affordable living, with an average deposit-saving time of 34 months.

Stirling, positioned between Glasgow and Edinburgh, scored high for purchasing power and healthcare access.

Tycoon Time

Our Tycoon of the day is the late great Sam Zell, the son of Polish immigrants, who caught the real estate bug early.

He’s best known for creating some of the world's largest companies in commercial real estate and helping to establish the $1t public real estate industry. 

So what was his secret? Reading the risk of any deal accurately and being super focused on the downside. His mantra was if you’ve got a big downside and a small upside, run the other way. 

However if you’ve got a big upside, and a small downside do the deal. 

He very much believed that opportunity was often embedded in the imbalance between supply and demand

So how can you apply this? When assessing a deal, don't do what most people do, they focus only on the upside because that's where the fun is. 

Instead ask yourself what’s the outcome if everything goes wrong? What actions would you take? Would you be able to bear the financial/emotional and psychological cost? Would you survive it?

In addition to looking at worst case scenarios, look at how hard a project or development is to execute - the simpler the goals and steps to reach them, the more likely you are to be successful. 

That's it for this week folks. Each week we’ll cover strategies, updates and insights to help you succeed in real estate. We love this stuff! 

If you Have questions or just want to chat, We want to hear it. 

See you next time in your inbox!

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