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Homeowners paying off mortgages into their 70s is expected to become the "new normal" as more than half of loans can now be extended over 40 years. Data compiled by Moneyfacts shows 51% of mortgage deals available on the market are available over a maximum repayment period of 40 years, up from 36% in 2014. By contrast just 3% of deals require borrowers to repay within 25 years, down from 7.5% in 2014. Moneyfacts suggested that home loans are getting longer due to the sharp rise in house prices , and by choosing longer terms homeowners can afford to take out bigger loans, although they will be more expensive in the long run as more interest will be paid.
The Daily Telegraph (18/03/2019)
The Times sets out the reasons how Canary Wharf is earning a new reputation as a residential hotspot – a far cry from its image as a dull and soulless financial hub. On weekends, this part of town is now bustling with shoppers, diners and drinkers who like being by the river, with the waterfront promenade at West India Quay a particular favourite. Wood Wharf, which will host the first homes to be built on the actual Canary Wharf estate, will feature a number of independent shops, along with an outpost of the Arts Club and a trendy NoCo hotel. Pan Peninsula, Dollar Bay and No 1 West India Quay number among the area’s new apartment blocks, although they are far from the only options; Burrells Wharf Square has flats in old warehouses from £300,000, and there are pockets of period terraces all around the Isle of Dogs, where three-bedroom houses start at £700,000. All are well-connected, with Westminster just 11 minutes away on the Jubilee Line, and the City a similar duration on the DLR. Additionally, Liverpool Street will be just six minutes away, when the Elizabeth Line opens.
Ballymore, the owner of the Wardian London development in Canary Wharf is seeking a High Court injunction preventing “persons unknown” – such as urban explorers and high-rise climbers – from trespassing on the site. Thrill-seekers might seek instead to try their hand at nearby Landmark Pinnacle, Europe’s tallest residential tower at 784ft and 75-storeys. The 27th floor offers one route of access to the top; it is being turned into an urban park, with 8,700sq ft of green space. The very top of the tower features two landscaped roof terraces with sofas and loungers, an all-weather lawn and a residents' bar and kitchen for special events. Landmark Pinnacle’s 752 apartments are priced from £542,750.
Evening Standard (12/03/2019)
Modular home developer Project Etopia has advised that London is running short of homes available under the Government’s Help to Buy scheme, with developers unable to keep pace with demand. Only 1,619 properties in the capital remained eligible for funding under the scheme last month, down almost two thirds from 4,535 at the end of 2017. Joseph Daniels, chief executive of Project Etopia, said: “Only rapid house building on a large scale and innovative ideas will prove to be a lasting antidote”.
Evening Standard (12/03/2019)
House prices are expected to fall towards the end of the year, according to revised estimates from the Office for Budget Responsibility. It said that average prices will drop by 0.3% in the fourth quarter of 2019. Growth is expected to return in the second quarter of 2020, to 0.9%, but will remain well below the previously forecast figure of 3.1%. The OBR said: “Indicators of housing market activity and price expectations have deteriorated significantly since our October forecast and are consistent with a further fall in house price inflation”.
Daily Mail (13/03/2019)
Mortgage lending in the UK was up for remortgaging in the fourth quarter of 2018 compared to a year earlier, according to data from the Bank of England and the Financial Conduct Authority, though down for house purchasing. Lending to existing borrowers was 1.4 percentage points higher than a year earlier, at 31.1% of the total figures, the statistics revealed, while the proportion of lending for house purchases, including buy-to-let lending, was one percentage point lower than in 2017’s fourth quarter - at 63.5%. The data also revealed that the percentage of total loans going to first time buyers remained high by historical standards, at 21.2%.
City AM