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Soaring house prices have led to a boost in older people's wealth at the expense of the young, a top Bank of England official has claimed. The Bank's deputy governor Ben Broadbent said downsizing older people charge huge sums for properties thanks to the price surge, which in turn has led first-time buyers and those with growing families to take out vast mortgages. “This is the inevitable result of the boom in house prices in the early years in the last decade,” commented Mr Broadbent. He went on to warn that a significant increase in high-risk lending to businesses has worrying parallels with the sub-prime mortgage disaster that led to the financial crisis.
Daily Mail (23/01/2019)
A number of lenders have cut their rates for first-time buyers and homeowners remortgaging their properties. Last week HSBC dropped rates on 31 different fixed and tracker mortgages while Coventry Building Society dropped the interest rate on its 10-year fixed mortgage. Atom Bank, Accord Mortgages, NatWest and RBS are among the others that have cut rates. Commentators have said that the new rates are a response to increased competition in the market, and some banks missing their targets last year.
The Observer (20/01/2019)
An American billionaire hedge fund manager has paid £95m for a Grade II*-listed Georgian mansion within sight of Buckingham Palace. Ken Griffin, founder and CEO of Citadel, purchased the mansion at 3 Carlton Gardens, in what is believed to be the most expensive sale of a home in the UK since 2011. The John Nash-designed property, previously used by MI6, comes with a pool, staff quarters and formal private gardens, and was sold by the luxury property developer Mike Spink, who bought it for £65.5m in 2012.
Financial Times (21/01/2019)
Keystone London and GLA Land & Property have submitted plans to the London Borough of Newham for their £3bn residential-led, mixed-use redevelopment of a 40- acre site in Silvertown. Thameside West, master-planned by Foster + Partners, will comprise 5,000 homes, 200,000 sq ft of industrial space and workspace, and 75,000 sq ft of shops, restaurants and bars. The initial phase, designed by John McAslan & Partners, totals 500,000 sq ft comprising 460 mixed-tenure homes and 35,000 sq ft of workspace on the site of the former Carlsberg Brewery. Keystone chief executive Max James, said: “As one of the last major riverfront locations in London, the site offers a valuable opportunity to create a new community on The Thames with a genuinely sustainable mix of homes and workplaces aimed at a wide range of people living and working in this exciting part of London”. It will join a number of other developments in Silvertown, including Ballymore and Oxley’s 3,385 homes arranged around Millennium Mills, and Traders Quarter at Royal Wharf.
Property Week (17/01/2019) Evening Standard (17/01/2019)
A number of three-bedroom penthouses are on the market at Royal Docks West, a 19-storey tower just a three-minute walk from Custom House. The high-rise homes include a 777 sq ft terrace, along with two balconies perfect for soaking up the riverside views. Prices begin at £1,265,000,.while two-bedroom apartments on lower floors can be had from £590,000.
Evening Standard (15/01/2019)
House sales dropped in 85% of London boroughs last year, according to new data, as the UK’s property market experiences a tumultuous year marred by political uncertainty. In boroughs where sales fell, the average decline was 7.6% as a weighted average, with Tower Hamlets experiencing the worst fall at 22.5%. According to the analysis by smart homes provider Project Etopia, only five boroughs in the capital experienced a rise in transactions, with an average growth of 6.8%. “Falling transaction levels in a city like London, where affordability is a critical problem, is a sign of a sick housing market that refuses to adjust,” said Joseph Daniels, chief executive of Project Etopia.
City AM (11/01/2019)