Docklands News

The number of people reaching retirement age with mortgage debt is on the up, according to Age Partnership. The UK's biggest lending adviser for the over-50s said that 33%  of its customers in the first half of 2021 still had a mortgage, up from 28% last year. In March 2018 the Financial Conduct Authority (FCA) changed its rules to effectively relaunch a type of interest-only mortgage aimed at over-55s. Retirement interest-only (RIO) mortgages have a fixed rate for life and allow a borrower to repay the capital at death, through the sale of the property, meaning those with mortgage debts can stay in their homes. The FCA said it "could be an appropriate solution for older consumers with borrowing needs and good pension income". David Hollingworth of the mortgage broker L&C said: "The regulator realised that RIOs could help to address the concerns around interest-only borrowers that had no repayment vehicle and were coming to the end of their mortgage term.

The Sunday Times (22/08/2021)  

Canary Wharf Group (CWG) has published plans for a new, 55-storey residential tower on the western side of Canary Wharf, facing the middle dock. The Park Place scheme, designed by Skidmore, Owings & Merrill (SOM), will consist of 624 homes for rent managed through Vertus, CWG's rental arm. It also includes a four-storey mixed-use ‘pavilion’ building offering remote working facilities, cultural and retail spaces, public spaces and new thoroughfares. The move is part of a longer-term plan by CWG to re-purpose Canary Wharf as a place to live, rather than as a pure business district.

Building (17/08/2021)  

London needs to build 100,000 homes a year – double the current number -  if the city hopes to tackle its housing crisis, according to a new report. The authors of the 'Delivering on London's Housing Requirement' report said there is “no end in sight” for the housing shortage at current building rates. The Mayor's London Plan has outlined an annual target of 52,000 new homes, while the most recent government data shows just 41,718 were completed in the capital in 2019/20. However, the report, from the G15 group of the capital's largest housing associations and London Councils, concludes 90,000 to 100,000 new homes are needed. The forecast for the next four years also highlights that private housebuilders are more focused on building flats for higher earners and investors, whereas London's demand for affordable housing is almost eight times greater than the number of homes due to be delivered. 

Evening Standard (17/08/2021)  

The average house price across the UK increased by £31,000 in the year to June to £266,000 - the fastest annual increase since 2004. Prices jumped 13.2% in the 12 months to June 2021, up from an annual rate of 9.8% the previous month, according to data from the Office for National Statistics. Much of the increase was driven by the North West, where prices were up 18.6% and and North East, which saw an increase of 15.3%, while the lowest rises were seen in London, which recorded a 6.3% rise compared with a year earlier.

BBC News (18/08/2021)  

Buy-to-let mortgage borrowing has reached a record high. There were 2.02m outstanding buy-to-let mortgages at the end of June, up from 1.65m at the end of 2014, according to UK Finance. Most new buy-to-let loans approved by lenders in the first three months of this year were for landlords remortgaging, while 28,500 mortgages of the 67,500 approved were for new properties. Mortgage broker London & Country noted buy-to-let rates remained low and demand for good-quality rental property was still at high levels. Landbay, a buy-to-let mortgage lender, said: “There has been a shift away from amateur landlords towards professional and semi-professional landlords. This has been a consistent trend and we expect it to continue.” 

The Times (16/08/2021)  

A new report suggests that home owners end up £326,000 wealthier over a 30-year period than those renting – excluding potential house price growth. The Equity Release Council found that around 30% of homeowners saw their mortgage as an investment in their future. Nearly half of homeowners with a mortgage also agreed they were able to save more because their loan was cheaper than renting, thanks to unprecedented low interest rates. About 40% added that they believed having a mortgage in later life was becoming more acceptable and 57% said that they were looking at ways to release equity from their properties. 

The Times (17/08/2021)