Docklands News

The construction sector has continued to expand despite being slowed by the Omicron variant and supply chain problems, according to recent figures. The latest purchasing managers' index (PMI) from IHS Markit and the Chartered Institute of Procurement & Supply (CIPS) gave a reading of 54.3 for the building industry in December, compared to 55.5 in November - a reading higher than 50 indicating expansion. It attributed tougher pandemic restrictions and rising incidences of coronavirus for residential construction overtaking commercial building to register the highest growth of any segment. Tim Moore, director at IHS Markit, said: "The worst phase of supplier delays seems to have passed as the availability of construction products and materials continued to turn a corner in December".

Daily Mail (07/01/2022)  

A neighbourhood in east London is set to be transformed into a "mini village" after a huge redevelopment was approved by locals. Residents of Carpenters Estate in Stratford decided on the scheme to build 2,000 homes. There was a 66% turnout for the borough referendum and the plan was passed with a 73% vote in favour. Newham Council said the community would be "a vibrant neighbourhood in the heart of Stratford". As well as new homes, nearly half of the existing homes will be refurbished and upgraded to make them more eco-friendly, the council said, starting this year.

BBC News (05/01/2022)  

Average house prices in the UK hit a record £254,822 in December, according to Nationwide. Prices rose by 10.4% in 2021, with this up on the 10% annual growth recorded in November and the fastest growth rate in 15 years. Wales was the UK region with the fastest house price growth, with values up 15.8% in the calendar year, while London was the slowest-growing region, with prices rising by 4.2%. Values in Northern Ireland rose 12.1% and annual house price growth in Scotland was 10.1%. Reflecting on the report, Robert Gardner, Nationwide’s chief economist, said high demand and low stock of homes on the market had contributed to the soaring prices. However, he suggested it “appears likely that the housing market will slow next year, since the stamp duty holiday encouraged many to bring forward their house purchase in order to avoid additional tax.” He added that the Omicron coronavirus variant “could reinforce the slowdown if it leads to a weaker labour market.” 

BBC News (30/12/2021)   City AM (30/12/2021)   The Guardian (30/12/2021)   The Times (30/12/2021)  

Demand for five-year fixed rate mortgages has surged to the point where they will soon overtake two-year fixes as the nation’s favourite home loan. According to UK Finance, just under half of borrowers are on five-year fixed rate deals,— a rise of more than 50% in four years. In 2017, it was three in ten. Brokers say borrowers are shunning two-year deals in favour of longer fixes amid growing anxiety about hikes in interest rates and the cost of living. The Bank of England raised the base rate from 0.1% to 0.25% last month, and inflation was at a ten-year high of 5.1% in the 12 months to November. The best five-year deal for those with a 40% deposit.

The Times (03/01/2022)  

Soaring demand for homes means that there are an average of 29 buyers for every new property listed, according to new figures. Data from Propertymark revealed that the average number of houses available per estate agency branch fell to 20 in November, down from 21 in October and the lowest such figure since its records started in 2001. The average number of potential buyers registered per branch stood at 571 in November - equating to an average of 29 buyers for every property on the market, Propertymark said. Nearly two in five homes (38%) sold for more than the original asking price in November, up from around one in five (21%) in October. A year ago, only one property in 10 was selling for above the original asking price. The proportion of sales made to first-time buyers rose to 29% in November from 25% in October. “The pressure on the housing market, and consequently house prices, is continuing at an unrelenting rate,” said Nathan Emerson, chief executive of Propertymark. "The level of demand is expected to continue into the first quarter of next year - but cannot last forever."

The Daily Telegraph (21/12/2021)  

Soaring demand for homes means that there are an average of 29 buyers for every new property listed, according to new figures. Data from Propertymark revealed that the average number of houses available per estate agency branch fell to 20 in November, down from 21 in October and the lowest such figure since its records started in 2001. The average number of potential buyers registered per branch stood at 571 in November - equating to an average of 29 buyers for every property on the market, Propertymark said. Nearly two in five homes (38%) sold for more than the original asking price in November, up from around one in five (21%) in October. A year ago, only one property in 10 was selling for above the original asking price. The proportion of sales made to first-time buyers rose to 29% in November from 25% in October. “The pressure on the housing market, and consequently house prices, is continuing at an unrelenting rate,” said Nathan Emerson, chief executive of Propertymark. "The level of demand is expected to continue into the first quarter of next year - but cannot last forever."

The Daily Telegraph (21/12/2021)