Docklands News

With Labour preparing to form the next government, experts believe the party's housing policies could provide a much-needed boost to the UK property market. Labour has promised to build 1.5m homes and help first-time buyers through a mortgage guarantee scheme. The change of government is also likely to bring market stability, while base rate cuts from the Bank of England are also expected, which would lower mortgage rates and encourage more people to buy or sell homes. The Guardian says that relaxing planning constraints on greenbelt building, increasing the construction workforce, developing new communities, and funding social housing are all levers to pull. But, it adds that of these options, the first may be unpopular, the second needs time, the third has failed under David Cameron and Gordon Brown, and the fourth seems implausible given the main parties' economic constraints. Separately, the Telegraph notes that that British prime ministers who presided over strong housing markets have enjoyed longer tenures. Baroness Margaret Thatcher and Sir Tony Blair saw significant house price growth and high numbers of first-time buyers during their terms. However, Liz Truss and Gordon Brown experienced declines in property values and first-time buyer numbers.

The Daily Telegraph (05/07/2024)   The Guardian (05/07/2024)   The Sun (05/07/2024)  

Newham Council has given the green light for plans to turn the largest surviving group of Victorian gasholders into a new neighbourhood with 2,100 homes. The Bromley by Bow Gasworks site, near the border between Newham and Tower Hamlets, comprises seven disused Grade II listed gasholders. Under plans drawn up by architect RSHP for St William Homes, a joint venture formed by Berkeley Group and National Grid, these will be restored to incorporate many of the new homes within the cast iron structures. The remaining homes will be built in higher rise surrounding cylindrical buildings echoing the gas holder homes. A Section 106 legal agreement has to be finalised with London’s Newham Council, before work can begin on site in 2025.  

Construction Enquirer (01/07/2024)   Housing Today (01/07/2024)   Property Week (02/07/2024)  

House prices in the UK rose by 0.2% between May and June, according to the Nationwide House Price Index. The market remained fairly subdued, with transactions down by around 15% compared to 2019 levels. The average price of a home in the UK is now £266,064, with London homes averaging over double that at £525,248. Despite stronger earnings growth, higher mortgage rates have impacted house price growth. The annual rate of growth rose from 1.3% in May to 1.5% in June, leaving prices around 3% below the all-time high recorded in 2022. Due to rising borrowing prices, mortgage transactions have continued to decrease, falling by more than 25% from their peak five years ago. In contrast, because of the fact that higher rates have a damping effect on pricing, the number of cash buyers is actually up 5% from pre-pandemic levels. 

City AM (01/07/2024)   Daily Mail (01/07/2024)   The Guardian (01/07/2024)   The Times (01/07/2024)  

Americans are showing a strong interest in UK properties, particularly in London, despite their lack of knowledge or concern about British politics. US buyers have been purchasing trophy mansions, penthouses, and lateral apartments in some of England's most prestigious addresses. Last year, four in ten London homes valued at £15m and above were sold to American buyers, totaling over half a billion pounds. The upcoming change in the non-dom tax regime, which may affect foreign investments, does not seem to deter American buyers. They are said to be attracted to the quality and charm of traditional British homes, as well as their proximity to Europe. American buyers have also started to diversify their purchases, including new-build properties.

The Times  

Renters need to save £391,000 more than homeowners to afford a basic lifestyle in retirement, according to the Pension and Lifetime Savings Association. Couples with no housing costs require an estimated £22,400 a year of post-tax income to secure a "minimum" retirement lifestyle. To provide that income over a 20-year retirement, a couple with no housing costs would need savings or a pension pot of £448,000. However, renting couples will need almost twice as much, £839,000, to afford the same lifestyle. The figures are based on the average monthly rent of £1,246, assuming a 2.5% annual rent increase. The number of people aged 45-64 expected to still be renting by 2041 is estimated at 3.6m. Caroline Abrahams from Age UK warns that many private rented tenants aged 45 to 64 have no savings and may be unable to afford their home in retirement. 

The Sunday Times (30/06/2024)  

An open water swimming spot is to reopen at Middle Dock, in Canary Wharf’s business district, this weekend for a third summer. Love Open Water, which runs the swim sessions, said tests have shown the water levels had "consistently exceeded the minimum requirements for bathing standards" and are "completely clean and safe to swim in". The facility first opened to swimmers in 2022 and is back this year until October due to "overwhelming demand" from workers, residents and visitors, Canary Wharf Group (CWG) said. "During the early development of Canary Wharf, a cofferdam was put in at the entrance of Middle Dock, fully closing it off from the surrounding docklands and the River Thames", it explained. "It is entirely enclosed and totally untouched by any overflows or waste". Every session is lifeguarded and can be enjoyed by competent open water swimmers over the age of 10.

BBC News (03/07/2024)   Evening Standard (03/07/2024)