Docklands News

As the UK’s authorities have cracked down on Russian oligarchs and their property empires in London, Chinese buyers have been filling the void. "Russian money is pretty much yesterday," says Beauchamp Estates' Paul Finch. The number of new Russian buyers has tumbled over the past four or five years, with scrutiny having increased gradually after the Skripal poisonings and then massively after the invasion of Ukraine. "The Chinese have definitely taken up the slack. They have been quite prolific, especially the Hong Kong Chinese, in buying up properties in London," he adds. "They want trophies. And with that you get all the bells and whistles - the amenities and the facilities." In 2021, all of the city's top five super-prime property deals - or those worth £20m or more - involved Chinese billionaires, according to research by Beauchamp. That was ahead of Russians, Americans, Britons and Africans, who made up the rest of the list. As ever, one of London's big draws is its private schools and cultural offering.

The Sunday Telegraph  

Property prices have risen to nearly nine times the average household disposable income, according to Office for National Statistics (ONS) data. In the year to the end of March, the average property in England sold for £275,000, with this 8.7 times the average annual disposable household income of £31,800. In Wales, the median house price was £176,000 – six times the average income of £29,400, while the ratio in Scotland was 5.5 as house prices averaged £166,000 compared to a £30,300 salary. London is the least affordable region, with those in the lowest 10% of earners having to work 40 years to buy an average house. At the other end of the scale, an average-priced home in the North East cost the equivalent of almost 12 years of income. The ONS data shows that UK house prices rose by 12.8% in May, up from 11.9% the month before, hitting an average of £283,000. This is £32,000 higher than the typical price a year earlier. 

The Daily Telegraph   City A.M.   Evening Standard  

First-time buyer house prices and rents have risen three times faster in the past two years, according to Rightmove. Monthly rental payments are soaring at unprecedented rates data from the property site has revealed - increasing by 17% since 2020, compared to 5% in the two years before that. Wages rose by 14% in the same period, meaning income has failed to keep up. The average 10% deposit now stands at £22,493, 13% higher than two years ago, Rightmove found. Average monthly mortgage payments have climbed 22%. A new first-time buyer now typically pays £973 a month based on the average mortgage rate, up £173. In the previous two years the increase was just £41. Tim Bannister, of Rightmove, said that chasing soaring house prices had put first-time buyers at a disadvantage if they were unable to live with parents or family members while saving. The average monthly rental payment is up £128 over the last two years, with a tax crackdown on landlords driving many out of the market and reducing supply. A survey conducted by Rightmove found those planning to buy their first home said the biggest challenges they face are rising house prices and soaring energy bills. Fewer than half (43%) said they hoped to be able to afford a home within the next three years. Two-thirds of respondents had already started saving towards a deposit, the survey found. However, Rightmove said demand for first-time buyer properties is up by 35% compared to 2019, suggesting many are still determined to get on the ladder despite stretched affordability. 

The Daily Telegraph  

Interest rate rises will push up monthly mortgage costs so much that even a 10% house price fall will not make homes cheaper to buy than at the start of the pandemic, new analysis shows. In January 2020, before the pandemic hit, a typical couple spent 17% of their pre-tax salaries on their monthly mortgage payments, according to Pantheon Macroeconomics. This was below the average of 18.5% for the preceding 20 years, as low interest rates meant mortgage payments were comparatively cheap. Since the Bank started raising rates in December 2021, the share of salary needed to cover the mortgage payments on an average home has risen to 20.6%. This is the highest since September 2008, during the global financial crisis. Pantheon expects the share to peak at 23.5% in September. 

The Daily Telegraph (18/07/2022)  

Property and rent prices have been rising at an accelerated rate, according to the latest figures, as a cost of living crisis hammers household budgets. Rents in the UK rose by 3% in the year to June, up from 2.8% in the 12 months to May. House prices increased 12.8% in the year to May to £283,000, up from 11.9% in April, the Office for National Statistics revealed. The average cost of a home has jumped by £32,000, more than the average annual wage of £31,252.  

City AM (20/07/2022)  

Homeowners and landlords are flocking to "green mortgages" in a bid to escape soaring interest rates. The number of borrowers searching for such a loan has quadrupled since mortgages became more expensive last year, according to analysis by mortgage data firm Twenty7Tec. The deals work by offering lower interest rates and cash-back to incentivise property owners to improve the energy efficiency of homes. Twenty7Tec predicted "mass adoption" of green mortgages within the next three years, as borrowers try to keep costs down. 

The Daily Telegraph (16/07/2022)