01483715823 info@ifadirect.co.uk

December 2017 property market review

29th December 2017

IFA Direct
20 Vicarage Road
GU22 9BH

01483 715823



Property Market Review






Our monthly property market review is intended to provide background to recent developments in property markets as well as to give an indication of how some key issues could impact in the future.


Anecdotal 'London Office Crane Survey' barometer released

Established some twenty years ago, the 'London Office Crane Survey' is a closely watched indicator of current and future construction activity in central London. Not only does it reflect the amount of new construction activity in the capital, but it is a key indicator as to the state of London's overall economic health.

Whilst the latest edition reports a 9% fall in office construction over the last six months, and the lowest amount of new space being started since 2014, demolition levels of approximately eight million square feet indicate that new development is still very much underway.

Therefore, 2017 will result in a 13-year high in completions and, more importantly, 44% of space currently under construction is pre-let.

Savills 'Global Luxury Retail 2018 Outlook' released

The closely followed Savills 'Global Luxury Retail Outlook' shows that Chinese consumers have maintained their spending habits, adding a resurgence in luxury store requirements not only in their homeland regions, but also in areas such as Hong Kong and the other outlying island of Macau.

Away from their home spending territory, across Europe, retail property interest has also been seen to cater for this Cathay spending trend, with cities such as London, Munich, Paris, and Frankfurt being targeted for expansion.

Globally, other centres such as New York, Los Angeles and Miami have also been identified as areas of increased luxury retail property requirements.

Over £1bn invested in commercial property by English and Welsh councils

English and Welsh councils are on target to invest more than £1bn in commercial property in 2017. This includes investment in a mixture of assets such as country clubs, offices, hotels and retail shopping centres.

In the first eight months of 2017, £758 million was spent on purchasing commercial property, whilst only 1,730 council houses were built, according to property market data from Savills.

This estimated spend of £1bn for the full year would equate to over 8,000 new council houses. At present 1.2 million households are on the council house waiting list.

Activity bullish in commercial property sector

Recent trading postings from both retail and office developers, Derwent London and Hammerson, indicate growth in sales, property values and leasing activity, so far in the calendar year 2017.

On the retail front, Hammerson report footfall among their retailer tenants was higher than they had expected across both their UK and French properties.

David Atkins, CEO of the company, reported in the firm's recent earnings press release that: "In the third quarter we have maintained good leasing activity across our portfolio of leading retail assets, demonstrating that brands are continuing to prioritise space as well-invested, prime locations . . . "






House Prices Headline statistics




Average House Price



Monthly Change



Annual Change



*(Jan 2015= 100)


An annual price increase of 4.5%, which takes the average property value in the UK to £223,807


The North West saw the largest monthly fall in value of -2.0%


Northern Ireland saw price growth of 3.0% over Q3 2017







House Prices Price change by region



Monthly Change (%)

Annual Change (%)

Average Price (£)






Northern Ireland
(Quarter 3 - 2017)















East Midlands





East of England










North East





North West





South East





South West





West Midlands Region





Yorkshire & The Humber






Source: The Land Registry
Release date: 12/12/2017 Next date release: 16/01/2018







UK Unemployment Figures


There were 32.08 million people in work, 56,000 fewer than for May to July 2017 but 325,000 more than a year earlier


8.86 million people aged 16 to 64 were economically inactive


Jobless total

Unemployment rate


Source: Office for National Statistics
Release Date: 13/12/2017







Mortgage Activity


The number and value of loans for remortgaging and for house purchases rose in October


First-time buyers borrowed £5.1 billion, up two per cent on the previous month


Home movers borrowed £7 billion, up 2.9 per cent on September


Source: UK Finance (formerly Council of Mortgage Lenders)
Release date:






It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor. No part of this document may be reproduced in any manner without prior permission.





IFA Direct is a trading name of Credenda Ltd. Credenda Ltd is an Appointed Representative of Credenda which is authorised and regulated by the Financial Conduct Authority. Financial Services Register No: 181769 http://www.fca.org.uk/register.

IFA Direct Registered Address: 20 Vicarage Road, Woking, GU22 9BH. Registered in England, No. 2047680 .

Neither IFA Direct nor its representatives can be held responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

The Financial Conduct Authority does not regulate National Savings or some forms of mortgage, tax planning, taxation and trust advice, offshore investments or school fees planning.

The Financial Ombudsman Service (FOS) is an agency for arbitrating on unresolved complaints between regulated firms and their clients. Full details of the FOS can be found on its website at www.financial-ombudsman.org.uk

The information contained within this site is subject to the UK regulatory regime and is therefore targeted primarily at consumers based in the UK.

Please read our Privacy Statement before completing any enquiry form or before sending an email to us.