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Unibail-Rodamco-Westfield has commenced work on the £670m Cherry Park residential development next to its shopping centre in Stratford. When complete, the joint venture with the Public Sector Pension Investment Board and QuadReal Property Group will bring more than 1,200 new homes to the area. It will include a residents’ gym, swimming pool, workspace and new public spaces.
Property Week (28/06/2019)
UK house price growth slowed to 0.5% year-on-year in June, according to Nationwide’s latest house price index, lower than May’s 0.6% growth and the worst since February’s 0.4% increase. The average price of a UK home rose from £214,946 to £216,515 between May and June, while prices in the capital fell 0.7% to an average of £465,722 and prices in the south east dropped 1.6% to £277,227.
City AM (02/07/2019) The Daily Telegraph (02/07/2019)
Today’s young people are half as likely to get on the housing ladder compared with those of 20 years ago, according to a new LGA report. An analysis by the association revealed that 11% of people born in 1996 own their home, compared with 21% of those born in 1976 who owned a home by the time they were 22. The Understanding the Local Housing Market report continued to warn that many young people face renting into retirement, as the high cost of the private rental sector is preventing households from being able to save for a deposit. The report also reveals that, once on the housing ladder, many homeowners struggle to climb it, with the number of mortgaged movers currently 50% below 2006/07 levels. Association housing spokesman Martin Tett commented: "Home ownership remains a distant dream for most young people. The high cost of the private rental sector means many are unable to save for a deposit and face the prospect of being stuck renting into retirement."
24 Housing (28/06/2019)
Figures from the Financial Conduct Authority show the number of borrowers taking out "marathon" mortgages lasting 35 years or more has reached its highest level since the 2011 recession. Some 28,310 mortgages running for 35 years or more were approved in 2017 - a 27% annual rise. Barclays last week extended the maximum term on its Family Springboard mortgage from 25 to 35 years, a further sign that first-time buyers are being encouraged to take out marathon deals. The FCA said 2.5% of mortgage approvals in 2017 were for marathon deals, compared with 1.6% in 2011.
The Sunday Times (30/06/2019)
The government’s target for new home construction looks to be in jeopardy as housebuilding in England has continued to slow amid political uncertainty and skills shortages. In the first three months of 2019, the number of new builds starts declined by 9% compared to the previous three months, and dropped 9% annually, according to the Ministry of Housing, Communities, and Local Government. “The decrease in starts does look like a potential issue in the market. Longer-term it looks like overall delivery has levelled out at about 220,000 net additions a year,” said Neal Hudson, an independent housing market analyst. The government plans to build 300,000 new homes a year by the mid-2020s.
Financial Times (04/07/2019) Mortgage Strategy (04/07/2019) The Times (04/07/2019)
London Mayor Sadiq Khan says he needs several times the current funding level to deliver affordable housing in the capital. According to a new report by the Greater London Authority, £4.9bn is needed each year to give Londoners affordable housing - seven times the £700m City Hall receives via the annual housing grant from central government. The report cites Mr Khan's affordable homes programme, noting that to deliver a similar 10-year programme up until 2032, there needs to be 325,000 new affordable homes over the course of the scheme. City Hall figures show 14,544 affordable homes were started last year, exceeding the target of 14,000 agreed with central government.
City AM (23/06/2019)