Docklands News

The UK's property equity has reached an unprecedented £5.7trn, driven by recovering house prices, according to the Equity Release Council. This figure marks an increase from £5.4trn in the same period last year and surpasses the previous high of £5.6trn recorded in mid-2022. Jim Boyd, CEO of the Equity Release Council, stated: “Your prospects of living comfortably in retirement will rest on firmer foundations if you own your own home and include property wealth in your financial plans.” The study highlights that 55% of UK homeowners are over 55 years old, holding an average property equity of £321,213, which is significantly higher in London. The findings suggest that property wealth could play a crucial role in supporting the older population, especially as government pension spending is projected at £152bn for 2024/25. 

City AM (04/09/2024)  

The number of mortgages approved for home buyers reached 62,000 in July, the highest since September 2022, according to the Bank of England's Money and Credit report. This increase from 60,600 approvals in June indicates a potential upward trend in housing activity for the remainder of the year. Thomas Pugh, an economist at RSM UK, remarked: “The jump in net mortgage approvals to 62,000 in July strongly suggests that housing activity will continue to trend upwards over the rest of this year.” Experts predict further increases in mortgage approvals as interest rates decline, with Rob Wood from Pantheon Macroeconomics forecasting a rise to 65,000 in the coming months. 

Daily Mail (31/08/2024)   Daily Mirror (31/08/2024)   The Daily Telegraph (31/08/2024)   The Independent (31/08/2024)  

PLP’s revised plans to build 1,358 homes on the Westferry Printworks site on the Isle of Dogs have been approved for a third time, eight years after plans were first green-lit to redevelop what was once the biggest printworks in Europe. The new homes, 35% of which will be affordable, will be spread across more than half a dozen new buildings between four and 31 storeys tall, together with 23,000 sq m of commercial and community uses on a 61,516 sq m site. The proposed height of the taller towers has shrunk from previous iterations, while shorter blocks have increased. "This is a major regeneration scheme on a currently disused site, which will help breathe new life into this historic area of London Docklands. Construction is expected to start later this year and will be completed in four phases over six to eight years", commented a Tower Hamlets Council spokesperson. 

Architects' Journal (29/08/2024)   Building Design (29/08/2024)   Property Week (29/08/2024)   The Daily Telegraph (29/08/2024)  

In 2023, first-time buyers have made a significant comeback in London, purchasing 48% of homes sold in the first half of the year, up from 41% last year. The average price for first-time buyers in London reached £443,550, reflecting a £39,360 increase from the previous year. While wealthier buyers are opting for larger homes in desirable areas, those with tighter budgets are still being pushed to the suburbs. The trend indicates a shift in the market, with many first-time buyers returning to London after years of being priced out.

The Guardian (26/08/2024)   The Times (26/08/2024)  

Despite recent cuts in mortgage rates, first-time buyers are not reaping the benefits. The Bank of England's reduction of the base rate from 5.25% to 5% has led to lower fixed rates, with some lenders offering deals below 4%. However, those with smaller deposits are still facing high rates. Aaron Strutt from Trinity Financial noted: "There has been more of a concentrated effort to reduce rates for borrowers with the biggest deposits." For instance, the best two-year fixed rate for a 5% deposit is 5.45%, while those with a 40% deposit can access rates as low as 4.19%. 

The Sunday Times (25/08/2024)  

The FT's Sarah Moody discusses the challenges of using property as a pension investment, highlighting that "past governments have made the private rental sector unattractive for the private investor".

Financial Times (24/08/2024)