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Canary Wharf emerged out of the disused East London docklands in the 1990s and gave the capital its second financial centre, but until recently it might not have been the first area to spring to mind when looking for a new home in London. Canary Wharf Group, the privately-owned firm that controls the estate, is now making a concerted effort to shrug off its “all work and no play” reputation, to make it a residential destination rather than the endpoint of a commute. It is pushing to bring in more food and drink operators, to give the area the buzz that is part of the draw of living in London. It recently signed up street food market Mercato Metropolitano, which will open its doors this summer, at George Street in the new Wood Wharf development. Wood Wharf opened to its first tenants in February 2020 and then the pandemic hit demand, with a drop in the number of people moving in and making enquiries. However, says Canary Wharf Group head of residential Brian De’ath, there has also been a shift in the opposite direction. The developer will be looking to use the “benefits” of being a single landlord to recover from Covid-19 and attract new residents and business tenants, he explained, adding it is able to look at the Canary Wharf estate as a whole and control all the elements at play, whether that is residential, commercial, or retail.
City AM (15/03/2021)
The Evening Standard looks at how the COVID-19 pandemic has affected London’s property market over the last 12 months. The paper notes that house prices in the capital have climbed 6.2% since the property market was shut down a year ago, the fastest rise since 2016. While national lockdowns wiped 10% from GDP, property prices in the capital soared in the opposite direction – something highly unusual in recessions and will serve to exacerbate the housing affordability crisis at a time of rising unemployment. By comparison, property prices fell by 17.8% in the aftermath of the global financial crisis of 2008 as indebted households sold their homes quickly and cheaply. Despite financial uncertainty, reports of families leaving London in their droves, and the paralysis of the arts, hospitality and tourism sectors, the total value of property in the capital increased during the pandemic to £1.8trn.
Evening Standard (17/03/2021)
According to Halifax, the average London first-time buyer spends £489,098 - compared to just over £200,000 nationally. That means the average first-time buyer would need to save around £25,000 to be able to afford Chancellor Rishi Sunak newly announced 95% mortgage guarantee scheme.
Evening Standard (12/03/2021
Despite most other sectors suffering in 2020, house prices bucked the trend by increasing while the economy shrank, according to a new Office for National Statistics report assessing the damage done by Covid-19. The average UK house price reached a record high of £252,000 in December 2020 — an increase of 8.5% over the year, the ONS said. The surge in house buying at the end of 2020 may reflect the pent-up demand from people who had been unable to buy during the lockdown — and changes to the types of property people wanted such as houses with gardens, the agency added. The ONS said the difference between 2008 and 2020 could be because the former crisis was largely related to “structural issues with financing mortgages… Whereas the fall in GDP in 2020 was possibly driven more by reduced opportunities to spend, caused by lockdown restrictions, rather than primarily a lack of funds.”
The Daily Telegraph (15/03/2021) Daily Star(15/03/2021) City AM (15/03/2021) Daily Mail(15/03/2021)
Homeowners used their savings to reduce mortgages at a record rate in the final quarter of last year. Nearly £18bn of mortgage debt was repaid in the last three months of 2020, according to analysis of official data by the Equity Release Council. Homeowners made £5.1bn in lump sum payments, the highest figure since 2007. The payments were fuelled by the record level of savings that people have built up during the pandemic, as opportunities to spend dwindled in lockdown. Although overpayments soared, regular loan repayments remained below pre-pandemic levels as some mortgage-holders continued to defer in the face of financial pressures. “Mortgage holders across the nation have been polarised by the experience of the pandemic,” says Jim Boyd, chief executive of the Equity Release Council.
The Times (12/03/2021) Daily Mail (12/03/2021)
House prices dropped slightly for the second consecutive month in February, according to Halifax. The lender’s latest housing index shows that property values fell by 0.1% month-on-month in February, following a 0.4% decrease in January. However, across the UK, property values were still 5.2% higher in February than the same month last year, Halifax said. However, the bank cautioned that it would not expect the level of growth seen in house prices across 2020 to be sustained throughout this year. The average UK house price in February was £251,697. Russell Galley, Managing Director, Halifax, said the housing market has continued its “softer start to 2021” with average prices dropping off slightly compared to the previous month. He continued: "However, with annual house price inflation currently at +5.2%, property values remain comfortably higher than 12 months ago, when February was the last full month before lockdown.”
Evening Standard (05/08/2021) Daily Express (05/08/2021) Daily Mail (05/08/2021) BBC News (05/08/2021) The Daily Telegraph (05/08/2021)