Research by Yopa, the award-winning national estate agency, has revealed that the total value of the property market across England is estimated to have climbed by £1.6tn as a result of the pandemic property market boom, driven by a 25% increase in the average value of a home.  Yopa analysed the total value of the bricks and mortar market based on the total number of dwellings and the average value of a home, looking at how both have changed since the market went into overdrive during the pandemic.  National look The research shows that in December 2019, prior to the pandemic, the average home across England was worth £248,097. With some 24.4m dwellings found across England in 2019, this put the total estimated value of the property market just shy of £6.1tn. Fast forward to today, and the average house price has climbed by 25%, now sitting at £309,602. There has also been an increase in the number of homes, albeit more marginal at 1.9%, although this still equates to an increase of 459,191.  As a result, Yopa estimates that the total value of the property market currently stands at £7.7tn, an increase of £1.6tn (27%) since the start of the pandemic.  National look The research shows that in December 2019, prior to the pandemic, the average home across England was worth £248,097. With some 24.4m dwellings found across England in 2019, this put the total estimated value of the property market just shy of £6.1tn. Fast forward to today, and the average house price has climbed by 25%, now sitting at £309,602. There has also been an increase in the number of homes, albeit more marginal at 1.9%, although this still equates to an increase of 459,191.  As a result, Yopa estimates that the total value of the property market currently stands at £7.7tn, an increase of £1.6tn (27%) since the start of the pandemic.  Regional increases The South East has seen the largest jump in the total value of the region’s property market, increasing by £311bn as a result of the pandemic property market boom.  Despite the capital underperforming compared to the rest when it comes to pandemic house price growth, the London market is worth some £251.3bn more today versus the pre-pandemic market in 2019.  While the North East has seen the smallest increase in total market value, the region’s bricks and mortar market is still worth £45bn more today versus the 2019.  Local authority look Cornwall ranks top at local authority level, with £24.3bn added to the value of the Cornish property market as a result of the pandemic, no doubt driven by those looking to escape city life during lockdown restrictions. Buckinghamshire (+£23.4bn), Birmingham (+£22.2bn), Leeds (+£21.4bn) and North Yorkshire (+£20.1bn) have also seen some of the largest monetary increases in the value of their respective property markets since the start of the pandemic.   CEO of Yopa, Verona Frankish, commented:  “With all the current doom and gloom surrounding the property market it’s quite easy to forget that we’ve just witnessed one of the most sustained periods of house price growth in living memory.  “So while higher mortgage rates and buyer uncertainty may have dampened the current rate of house price growth, this reduction is just a drop in the ocean compared to the meteoric increases seen since the start of the pandemic property market boom.  “To think that the bricks and mortar market across England is estimated to be worth £1.6tn more compared to just a few years ago is quite incredible and it really does demonstrate the strength of the property market when viewed on a long-term basis.” Sources Average house price data sourced from the Gov – UK House Price Index – December 2019 vs September 2023 – latest available) Dwellings stock levels sourced from Gov – Subnational estimates of dwellings by tenure, England (2019 vs 2021 – latest available) Total market value based on dwellings stock multiplied by the average house price in each area Full breakdown of England by each local authority available via the link below. Data tables and sources can be viewed online, here. Building, Design & Construction Magazine | The Choice of Industry Professionals 

A residential property development in East London has been refinanced, following a bespoke £15m development to investment loan from Secure Trust Bank (STB) Real Estate Finance (REF). Situated in Chadwell Heath, an area rising in popularity for new property development schemes, the eight-story building will provide 55 high-quality residential units comprising of between one to three bedrooms. The residential property is set to further appeal particularly to small and growing families, with a landscaped park and nature area nearby. The apartment block also includes one commercial unit and is due to reach practical completion in January 2025. The ground-up scheme will be welcome news in housebuilding given the UK’s ongoing need for more housing, especially in London where there is a particular shortage of affordable homes. The five-year loan was facilitated thanks to a longstanding relationship between Matthew-Blaine Young, Head of Origination at STB, and the broker, Stuart Bradney of Carbon Funding Consultants. Lawyers Dan Keys, of Clyde & Co, and Liz Roberts, of gunnercooke, also played a vital role in securing the deal. STB’s experience and expertise in providing finance for property development assisted in shaping a transaction curated to the buyer’s unique requirements. The £15m development to investment loan enables the developer to hold and operate the property in the long-term as a build-to-let scheme. Stuart Bradney of Carbon Funding Consultants said: “We’re delighted to have sealed the deal with STB. Our established relationship with Matthew, and ultimately STB overall, was testament to completing the transaction in a timely fashion. “A complex transaction like this requires the right team around it to achieve a successful outcome. As a result, STB’s previous experience in overcoming the challenges affiliated with property development investment, alongside the professional input of the deal’s lawyers and surveyors, was crucial to finalising the agreement. “Conducting a weekly touch point meeting with Matthew and the team was pivotal to ensuring fluent and clear communication throughout the process. To us, STB is a trusted bank. We have been working with the real estate finance team and Matthew for five years now, and they have a tailored approach that really sets them apart from the competition.” Matthew-Blaine Young, head of origination at Secure Trust Bank Real Estate Finance, said: “Having worked with Stuart and Carbon Funding Consultants in the past, it was clear that our partnership for this deal would be a productive and rewarding one. As specialists in residential property development finance and investment, we were adamant that we could provide a bespoke deal to befit the client’s needs. We are proud to have played a role in providing new housing at a time whereby it is most needed.” For further details on Secure Trust Bank Real Estate Finance, please click here. Building, Design & Construction Magazine | The Choice of Industry Professionals 

The nation’s landlords are responding to higher levels of mortgage interest rates by cutting down on their borrowing. The research comes from specialist property lending experts, Octane Capital, which compared the total amount of borrowing amongst buy-to-let landlords between Q3 2022 and Q2 2023 and the corresponding period the year before. It found that buy-to-let landlords reduced their borrowing by around £7 billion over that timespan, from £37.9 billion in 2021-2022 to £30.4 billion in 2022-2023. In terms of a percentage change, this means that buy-to-let landlords collectively reduced their borrowing by -19.8% in just a single year. A period in flux It’s no wonder that landlords have looked to reduce their exposure to the mortgage market, given how the Bank of England base rate has shifted over that period. At the start of December 2021 the base rate stood at 0.1%, while by June 2023 it reached 5.0%. Other unusual events also rocked the markets. In February 2022 Russia would launch its invasion into Ukraine, creating an inflationary effect on the cost of energy, which would filter through to other sectors. Meanwhile September 2022 saw ex-Prime Minister Liz Truss’s ill fated mini-budget, where a selection of uncosted tax cuts served to spook the financial markets, causing mortgage interest rates to surge almost overnight. It’s no wonder that investors have looked to restrain their borrowing in this context. First-time buyers The rest of the market followed a similar trend to buy-to-let, as lending to first-time buyers dropped from £68.1 billion in 2021-2022 to £65.9 billion in 2022-23, a reduction of -3.2%. Meanwhile all other forms of lending fell by -7.6%, from £92.2 billion to £85.2 billion. Remortgage activity rose slightly, from £79.9 billion in 2021-2022 to £81.0 billion in 2022-2023, reflecting how more borrowers consolidated what they had rather than saddling themselves with fresh debt in the form of a new mortgage. CEO of Octane Capital, Jonathan Samuels, commented:  “Landlords are taking fewer risks with their borrowing, which makes sense given how the market has become objectively less attractive in the past couple of years. “No longer are buy-to-let mortgages available for 2-3%, so it’s less economically viable to invest in property on a highly leveraged basis. “Now landlords are in a period where they’re adjusting to a new normal, where they need to be strategic and consider using a larger deposit if they want to continue growing their portfolios.” Data tables and sources can be viewed online, here. Building, Design & Construction Magazine | The Choice of Industry Professionals