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New research indicates that new housing developments criticised by local residents for harming their house prices could actually be a boon for local property values. Online property lender Blend Network found that 17 of the top 20 areas for new homes built between 2011 and 2017 enjoyed house growth higher than the national average. Yann Murciano, of Blend, said: “Many homeowners assume large housing developments in their home towns will have a negative effect on house prices. But in many instances we found the opposite was true.” Simon Rubinsohn of Rics commented: “It is fundamentally about whether enough homes are built in an area compared to the number of people that want to live in an area.”
The Daily Telegraph (09/06/2019)
The value of new mortgage commitments rose 4.5% on a year earlier to £63.8bn in the first quarter, according to the Bank of England’s latest mortgage lenders data, which indicated that the outstanding value of all residential mortgage loans rose to £1.45bn - a 3.4% rise on last year. Despite the Prudential Regulation Authority airing concerns over “risky lending,” mortgage loans with a loan to value (LTV) ratio of more than 90% increased to 4.5%, compared with 3.3% the previous year.
City AM (11/06/2019)
Weston Homes and the Estates and Agency Group have received planning permission to regenerate the six-acre Abbey Retail Park in Barking into a new £350m, 1.2m sq ft urban village. In total, 1,089 new homes will be created, including 37 private-sale one-, two- and three-bedroom apartments and penthouses, and 352 properties classed as affordable housing, all spread across 13 residential blocks split across three buildings. The project also includes 22,281 sq ft of commercial/leisure space, including a pub/restaurant on the banks of the Roding, a 6,857 sq ft Max Whitlock MBE athletes training centre/gym, 5,059 sq ft of community space, and a community-hub/reception for accepting/meeting deliveries/visitors for residents.
Property Week (04/06/2019)
Hundreds of construction workers had to be evacuated on Tuesday from a tower block under construction at Wood Wharf, after a fire broke out on the 35th floor. Five fire engines and around 35 firefighters were called to the blaze at the Canary Wharf Contractors (CWC) development on Prestons Road; one man suffered smoke inhalation, while part of a five-roomed apartment suffered damage. A CWC spokesperson said it is fully supporting a London Fire Brigade investigation.
Construction Enquirer (05/06/2019)
House prices in May fell 0.2% from April, according to Nationwide Building Society. Compared with a year earlier, house prices rose 0.6% - slower than the 0.9% rise the previous month. The average price for a house bought over the period was £214,946, up from £214,920 the previous month. Meanwhile the number of first time buyers has continued to recover, with 359,000 first-time buyers in the 12 months to March, just 10% below the 2006 peak, according to the Nationwide data. "New buyer inquiries and consumer confidence have remained subdued in recent months," said Nationwide chief economist Robert Gardner. "Nevertheless, indicators of housing market activity have remained broadly stable”.
BBC News (31/05/2019) City AM (31/05/2019)
Housing minister James Brokenshire is expected to propose that young people be allowed to dip into their pension pots to help them fund a deposit for a new home. Mr Brokenshire will suggest changing the rules on pensions to “empower” those trying to take their first step on the property ladder. Mr Brokenshire will call on the next Prime Minister to reform pensions to allow young people to “make the choice for themselves” if they want to spend them on property instead. “We should be changing the necessary regulations to allow this to happen, protecting the integrity of pension investments but allowing lenders to innovate and design new products to bring this opportunity to consumers,” he said. However, Alistair McQueen, head of savings and retirement at Aviva, said: “The idea of funding a house deposit by opening a pension addresses one challenge by exacerbating another”.
The Daily Telegraph (02/05/2019) Mortgage Introducer (04/06/2019)