Docklands News

City analysts believe the surging jobs market may see the Bank of England (BoE) opt for further increases to interest rates next month. The Bank last month voted to increase the base rate to 0.25%, having previously opted against an increase due to fears over the strength of the jobs market.  RSM economist Thomas Pugh believes the chances that rates will be increased at February’s Monetary Policy Committee (MPC) meeting have been boosted by recent strong jobs data from the Office for National Statistics, suggesting that the MPC “is likely to conclude that the labour market is strong enough to absorb higher interest rates". Shane O'Neill, head of interest rate trading for Validus Risk Management, said the ONS data “represents another box ticked on the path to more rate hikes".

Daily Express (18/01/2022)   Evening Standard (18/01/2022)  

Mortgage applicants are likely to face tougher affordability checks over the coming months, as lenders become more cautious amid inflation concerns and buyers struggle to keep on top of their finances. Reports suggest HSBC is considering tightening its mortgage lending criteria as household finances are put under pressure by rapidly rising energy prices and inflation more widely. Sources at the bank confirmed the lender is assessing whether it will impose stricter affordability tests to ensure borrowers can afford to meet their monthly repayments. Katie Brain, a banking expert at Defaqto, said: "All mortgage lenders review a borrowers' affordability to determine how much they are prepared to lend, with the rise in cost of living at the moment this will be reflected within the increase in household bills." 

The i (17/012022)  

Following an intervention by the London Fire Brigade (LFB), developer Ballymore has decided to delay plans for a 52-storey Canary Wharf skyscraper with just one fire escape. The proposal was due to go before Tower Hamlets Council's planning committee on Thursday. “Our comments on the Cuba Street development have been provided directly to the planning committee with regards to the fire strategy of the building", the LFB said. "In buildings with a single escape route, we would expect the developer to have their own fire engineers provide a full review to show the resilience in the event of a fire and this does not appear to have been carried out". The plans had previously been recommended for approval. The 174m skyscraper was designed by Morris+Company, which described it as a "castle in the cluster", with its crown featuring castellations made by vertical façade panels which continue into the sky and end "in a manner of scale, intricacy and boldness". The development was to have included 400 flats with a total of 655 bedrooms. The scheme also included a new public park, which will cover around half of the rectangular 0.44ha site. The site is close to Glenn Howells Architects’ recently completed Wardian London development, which is formed of a pair of residential towers standing at 50 and 55 storeys, as well as HTA Design’s 26-storey Bellamy Close, which was given planning permission last year.

Architects Journal (14/01/2022)   Property Week (14/01/2022)   The Guardian (14/01/2022)  

The Sunday Telegraph reports that construction firm Balfour Beatty and housebuilder Places for People are seeking to force Mayor of London Sadiq Khan to renegotiate the terms of a 1,800-home housing scheme on the west side of the Olympic campus in Stratford. The developers have claimed that the scheme is not viable unless it is renegotiated, and say they have incurred £7.3m of losses since 2019 despite making £28m in sales, while the London Legacy Development Corporation, which is responsible for the management of the Olympic Park, has criticised the speed of development and argued that the developer was in default of its agreement. 

The Sunday Telegraph (09/01/2022)  

House prices reached record highs last year, after the stamp duty holiday and extra cash reserves accumulated by households during lockdowns helped to boost prices by 10%. The average UK property price reached £276,091 in 2021, according to figures published by Halifax. House prices increased by more than £24,500 last year, which is the biggest annual rise in cash terms since March 2003. A lack of homes available for sale and historically low mortgage rates have also contributed to the annual increase in prices. It is the fastest rate of growth since July 2007. The rise in prices is expected to slow in 2022 as the rising cost of living eats into households’ disposable income. Wales was the strongest performing UK nation, with prices up by 14.5% compared with 2020 to reach an average of £205,579. House price growth was about 10% in Northern Ireland and Scotland. The northwest had the fastest growth across England, with prices 11.8% higher at the end of 2021 than in the previous year. But Halifax expects the boom to lose steam. Managing director Russell Galley said: "Looking ahead, the prospect that interest rates may rise further this year to tackle rising inflation, and increasing pressures on household budgets, suggests house price growth will slow considerably". 

BBC News (07/01/2022)   Evening Standard (07/01/2022)   Financial Times (07/01/2022)   The Times (07/01/2022)  

The year ahead could bring more stability to the housing market, after a bumper year in 2021 saw frenzied homebuyer activity and prices surging to record highs. Trade association UK Finance estimates £316bn worth of home loans were given in 2021, driven by strong homebuyer activity. It marked the highest total since gross lending reached £357bn in 2007. Looking ahead, James Tatch, principal, data and research at UK Finance, commented: “We're seeing a return to a stable path for new lending, for (2022) onwards.” 

The Guardian (10/01/2022)   The Independent (10/01/2022)