Legacy Weekly Update (13th-23rd September 2025)
Market & Prices
Research by Nationwide reveals that London properties within 500 metres of a train or Tube station command an 8% premium, equating to an average of £42,700 more than similar properties 1,500 metres away. This trend is consistent with pre-pandemic levels, reflecting the enduring importance of good transport links for buyers. Similar premiums are observed in Manchester (4.9%) and Glasgow (4.6%). The UK housing market is experiencing a slowdown in price growth, with house prices increasing by 2.8% annually as of July 2025, a decrease from the 3.6% growth seen in June. The average property value in the UK now stands at £270,000.
Mortgages & Finance
The Skipton Group's research indicates that nearly 98% of young adults living with parents cannot afford typical first-time buyer costs. Even with a deposit, nine out of ten would see nearly half their income consumed by housing costs. Mortgage rates have seen a decline, with the average 5-year fixed rate dropping to 4.56% from 6.08% in July 2023. The Mortgage Charter encourages lenders to offer flexible terms to borrowers nearing the end of their fixed rates. The Bank of England has maintained the Base Rate at 4%, with inflation at 3.8%.
Rental Market & Landlords
Rising living costs are forcing young people to remain with their parents longer, impacting rental demand. Rents in the private sector increased by 5.7% year-on-year in August, marking a slight decrease from the 5.9% rise in July. Landlords are focusing on energy efficiency to boost rental yields, with upgrades like improved insulation and energy-efficient appliances. The Renters' Rights Bill is set to return to the House of Lords, including the introduction of the Decent Homes Standard.
Policy & Legislation
Provision 29 of the revised UK Corporate Governance Code mandates UK-listed companies to declare the effectiveness of their internal controls from January 2026. Ofgem has proposed new tariff options requiring energy suppliers to offer low standing charge tariffs by January. The Renters' Rights Bill's progression through Parliament is a critical development, with the NRLA advocating for clarity on the Decent Homes Standard. Uncertainty surrounding potential changes in property taxes, including stamp duty, is causing concern in the housing market.
Planning & Development
There is a growing emphasis on developing housing near transport links, particularly in London, where proximity to stations significantly affects property values. Barratt Redrow emphasises the need for government policy to focus on reforming the planning system and supporting first-time buyers to meet housing demand. Amazon's decision to close its UK grocery stores underscores a shift towards online delivery services.
Data & Research
Nationwide's data highlights the significant premiums associated with properties near transport links, while Skipton Group's Home Affordability Index underscores the financial challenges faced by young adults in achieving homeownership. The UK HPI data highlights a 0.3% monthly increase in house prices from June to July 2025.
Industry Moves & Corporate
Financial institutions like HSBC and Standard Chartered are leveraging AI to enhance anti-bribery and corruption procedures. Safe2, the NRLA's compliance arm, has partnered with No Letting Go, enhancing service integration for safety checks and inventories. Barratt Developments, following its acquisition of Redrow, reported a 33% rise in revenue and a 26% increase in profits.
Other Noteworthy
The integration of AI in financial services is transforming compliance processes, with significant improvements in efficiency and accuracy. The potential extension of the ECO4 energy grant scheme by up to nine months could provide landlords with additional time to apply for energy efficiency funding. The integration of Barratt and Redrow has led to the closure of several divisional offices, reflecting ongoing corporate restructuring efforts.
--- This briefing was produced automatically by Legacy using expert-tuned AI. If you spot anything we should add next week, please reply to this email.
