On Tuesday 13 May, Butterfield Mortgages Limited hosted a breakfast at The Swan on Bankside.
The event was attended by a number of valued business partners to hear about a wide range of interesting industry developments.
With stunning views of the City and River Thames, attendees heard from Lucian Cook, Head of Residential Research at Savills; Mark Chick, Senior Partner and Head of the Landlord & Tenant team at law firm Bishop & Sewell; and Will Savage, Head of Corporate Partnerships at The Felix Project, Butterfield Mortgages Limited ('Butterfield Mortgages') charitable partner.
Below we recap on what was an insightful morning, including the most pertinent information shared by our wonderful speakers.
Tax, tariffs and the prime housing market – Lucian Cook, Savills
Lucian kicked off proceedings by providing an excellent snapshot of the PCL market.
UK tax reforms – including the abolition of the remittance basis for non-doms and the expansion of inheritance tax to global assets – are reshaping buyer behaviour. Combined with the 2% Stamp Duty surcharge and VAT on private school fees, these measures are creating greater caution among high-net-worth individuals.
Moreover, economic uncertainty and US trade policies are creating further uncertainty among investors. While direct economic impact on the UK may be limited, market turbulence and stock volatility are affecting wealth creation and, by extension, prime property demand.
That said, interest rates could fall faster than expected, thanks to disinflationary pressure from tariffs. Alongside more relaxed affordability testing, this may support a stronger housing market recovery.
In PCL, price corrections in areas like Chelsea and Mayfair can be seen, while more domestic-led markets such as Notting Hill remain resilient. With prices still 21% below the 2014 peak and supply constrained, however, opportunities for buyers are emerging.
As a result, Savills projects a 9.6% rise in PCL prices over five years, despite a forecasted 4% dip in 2025. Prime regional and outer London markets are expected to outperform, with 18.2% and 14.7% growth respectively.
Leasehold reform update – Mark Chick, Bishop & Sewell
Next to speak was Mark Chick, Senior Partner and Head of the Landlord and Tenant team at Bishop & Sewell, who provided a much-needed update on the complicated nature of leasehold reform.
The Leasehold and Freehold Reform Act was passed in May 2024, but only a few provisions are currently in force. Critical reforms remain unresolved, creating uncertainty for short leaseholders and prospective buyers, while no updates have emerged regarding restrictions on ground rents for existing leases.
The Act aims to simplify and reduce the cost of lease extensions and freehold purchases by removing marriage value, standardising lease terms to 990 years, and streamlining valuation.
Leaseholders will also gain greater rights to manage buildings, with simplified collective enfranchisement and Right to Manage procedures. Meanwhile, legal costs previously put on leaseholders will largely shift to landlords, improving fairness and transparency.
Mark demonstrated that the implementation of the Act is planned carefully, with further consultations underway. This includes reviews of challenges related to the Human Rights Act. Six claimants are currently pursuing judicial review over potential losses linked to reforms to marriage value and cost reallocations, with a trial expected in July 2025.
The commonhold reform white paper was also discussed, highlighting ongoing issues such as untested models, conversion thresholds, and balancing flexibility with enforceability, indicating reform remains a work in progress.
Combatting food poverty in the Capital – Will Savage, The Felix Project
The breakfast briefing finished with a talk from Will Savage, Head of Corporate Partnerships, from The Felix Project – an organisation of which Butterfield Mortgages is proud to support.
The organisation is London’s largest food redistribution charity, rescuing high quality surplus food that would otherwise go to waste and distributing it to over 1,200 community organisations and schools across London.
One of the biggest takeaways from the talk was the significant growth that the charity has achieved in recent years. Started in 2016 by Justin and Jane Byam in memory of their son Felix, it now has four depots, a kitchen, Multibank and processing hub in London.
What’s more, in 2024, 13,398 volunteers gave over 146,000 hours of their time to the organisation, and 10,700 group volunteers from across 370 organisations and companies. As a result, it was able to redistribute 16,000 tonnes of food from over 300 different suppliers and delivered over 38 million meals – the equivalent of £63 million in food value.
The talk demonstrated the clear impact that The Felix Project, its volunteers, suppliers and corporate partners are making. Food poverty remains a significant issue in London, particularly in areas like Tower Hamlets, despite their close proximity to some of the most affluent parts of the capital.
More can, and must, be done to address the issue – The Felix Project is going above and beyond to do just that and Butterfield Mortgages is proud to be supporting them to help make a positive impact. More information about the organisation can be found here: https://thefelixproject.org/
We were delighted to host this breakfast briefing, and our thanks go to all the speakers for their input. We hope that all those in attendance enjoyed the event and its insights as much as we did. Should any intermediaries wish to speak to the Butterfield Mortgages team about the PCL market or how we can help support their clients in the prime market, please do not hesitate to get in touch.
All views expressed in this article are solely those of the author(s) and / or speaker(s) referred to and do not necessarily reflect the views of Butterfield Mortgages Limited and its affiliated entities. Butterfield does not accept responsibility or liability for the opinions or comments published in this article
Alpa Bhakta is the CEO of Butterfield Mortgages, a London-based prime property mortgage provider with a focus on the needs of UK and international HNWIs.
Butterfield Mortgages Limited is authorised and regulated by the Financial Conduct Authority (Financial Services Register Number: 119274). Registered office: Sun Court, 66-67 Cornhill, London, EC3V 3NB. Registered in England No. 338594.