Docklands News

Paul Bassi, chief executive of Real Estate Investors, believes that the property market is “at or near the bottom,” indicating a potential recovery. He anticipates "a period of positive activity and the potential for capital and rental growth," helped by lower interest rates and increased demand. “A normalising market backdrop will contribute to more rapid sales and debt repayment, allowing us to execute our strategy and return capital to shareholders, whilst continuing to pay a covered dividend,” he said.  Despite a challenging first half of 2024, with transaction activity 40% below the five-year average, the Bank of England's recent interest rate cuts may bolster the market.  

City AM (24/09/2024)  

New build homes in the UK have long faced criticism for issues such as poor quality, snagging problems, and long construction times. However, improvements are underway due to the New Homes Quality Board, a non-profit organisation with redress powers established by the government to ensure higher standards in new housing developments. Property sales of new homes have also increased, with 231,000 completed in 2023

Daily Mail (25/09/2024)  

Homeowners anticipating further reductions in mortgage rates may be disappointed as the Bank of England's monetary policy committee has maintained the base rate at 5%. Aaron Strutt from Trinity Financial cautioned: "The likelihood of fixed rates coming down significantly more is slim," suggesting that locking in a deal now could be wise. The lowest two-year fixed rate currently stands at 3.99% from Santander, while Barclays offers a three-year fix at 3.88% for Premier customers. Nicholas Mendes from John Charcol predicts that by year-end, five-year rates could drop to around 3.5%. David Hollingworth from L&C Mortgages advises borrowers to start considering their options three months before their current deal ends. 

The Sunday Times (22/09/2024)  

Phil Spencer says London's housing market is facing significant challenges, characterised by unaffordability and stagnation. The TV property guru is urging the Government to implement crucial tax reforms in the upcoming budget to stimulate movement in the market. He highlights the impact of proposed increases in Capital Gains Tax on rental properties, remarking: “I worry greatly unless landlords are incentivised about what will happen to society.” Spencer also advocates for incentives for downsizers, suggesting that easing their transition could alleviate housing shortages. He believes that without substantial changes, including a review of the planning system, the market will struggle to recover. 

The Standard (24/09/2024)  

Plans for a 33-storey tower block next to the Thames in Greenwich have been approved, after previous plans for a taller block were scaled back. Criterion Capital's new proposal for the Telcon Way site was discussed at a planning meeting for Greenwich Council on September 17th, with the two floors of the tallest tower being redistributed to the two other blocks in the scheme, bringing their heights up to 24 storeys each. In total, the developer will deliver 564 new homes to the site. “We believe the scheme now responds to the concerns raised and the building heights are now proportionate to the surrounding context", said Tim Bystedt, head of design at Criterion Capital. "Not only is the site providing much needed housing, including 35% affordable, we are also making 65% of the site available for public space".

BBC News (19/09/2024)  

Official data shows that in July, London's house prices fell short of the UK as a whole, but rents increased more quickly in the capital than in other areas. The Office for National Statistics said that the average price of a home in London dropped to £521,000 in July at an annual pace of 0.4%. In comparison, the UK saw an annual growth of 2.2% to £290,000. The data highlights the disparity between property prices in the nation's capital and the rest of the country, where prices increased in July, continuing a trend that has been mostly stable since 2016. On the other hand, the ONS reported that private rentals in London increased by 9.6% in the year ending in August, outpacing the 8.4% increase in the UK as a whole. This increase significantly outpaces the 5.1% rise in wages, exacerbating the cost-of-living crisis

Evening Standard (18/09/2024)   Financial Times (18/09/2024)   Reuters (18/09/2024)   The Times (18/09/2024)