Docklands News

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)  

More property buyers have taken on longer loans to make rising house prices more affordable - but risk spending more in interest. The number of mortgages sold with 35-year term or longer hit a three-year high in March this year, according to a Freedom of Information request from wealth manager Quilter. The level jumped by almost 75% compared with the same month in 2020. It came as house prices rose at their fastest rate since 2007. The frenzied market and huge price increases meant borrowers were forced to agree to longer mortgage deals to afford home purchases, said Quilter. It noted that compared with a 25-year term, for a 30-year term, the total bill will be £16,500 higher because more interest is incurred. 

The Daily Telegraph (13/08/2021)  

The Halifax says house prices rose again in July after dipping the previous month, leaving prices 7.6% higher than at the same time last year. The average property price across the UK was £261,221 in July, with the highest rise of 13.8% seen in Wales and the lowest, 2.5%, in London. “This easing was somewhat expected given the strength of price inflation seen last summer, as the market began its recovery from the first lockdown, and with activity supported by the start of the stamp duty holiday", said Halifax managing director Russell Galley. “Recent months have been characterised by historically high volumes of buyer activity, with June the busiest month for mortgage completions since 2008. This has been fuelled both by the ‘race for space’ and the time-limited stamp duty break".

BBC News (06/08/2021)   City AM (06/08/2021)   The Times (06/08/2021)