Docklands News

Mayor Sadiq Khan has given the green light for the next phase of EcoWorld London and Poplar HARCA's 1,500-home Aberfeldy Village redevelopment scheme. Of the 1,500 new homes, 39% will be allocated for affordable housing, with 89% of those for social rent. Nearly half (46%) of the homes will be family-sized with three or more bedrooms. Plans also feature new community amenities, a revitalised high street, new green spaces and play areas, and improvements to local parks. Construction costs and dates for the latest phase are yet to be disclosed.

Property Week (29/01/2024)  

Thousands of homes under construction have been left abandoned at stalled "ghost housing developments" across London due to the sudden downturn in the property market. Construction work at 61 house-building sites with at least 20 homes to be completed had been halted, leaving over 6,000 half-built homes. This number of schemes on hold is unprecedented, with only 10 schemes put on hold during the financial crisis in 2008 and 2009. Developers blame a "perfect storm" of setbacks, including interest rate spikes, contractor collapses, soaring costs, and new safety regulations. The figures reveal devastating falls in starts, completions, and sales in the London private housebuilding sector in 2023. 

Evening Standard (30/01/2024)  

House prices rose at their strongest pace in a year, according to Nationwide. The average home is now worth £257,656, with prices increasing by 0.7% between December and January. This marks a turnaround from the 1.8% fall recorded in 2023. Robert Gardner, Nationwide's chief economist, attributed the increase to cuts in mortgage rates and positive forecasts about interest rates. However, he noted that the outlook remains uncertain. The housing market has been lacklustre recently, but prices have stabilised in many areas. Nationwide also highlighted the challenges faced by first-time buyers, with the typical deposit equating to 105% of their average annual gross income. Gardner said: “There remains considerable variation in affordability across the country, with pressures particularly acute in London, the south of England and East Anglia. Scotland and the north continue to be the most affordable regions, with mortgage payments as a share of take-home pay much closer to their long run average".

Daily Mail (31/01/2024)   Financial Times (31/01/2024)   The Daily Telegraph (31/01/2024)   The Times (31/01/2024)  

House prices have risen so sharply that more people are waiting until their 50s to buy their first home. According to Financial Conduct Authority data, there has been a 29% increase in over-50s first-time buyers between 2018 and 2022. The number of 18 to 25-year-olds entering the property market has dropped by 8%, while first-time home purchases among those aged 26 to 30 have decreased by 1%. The trend of older first-time buyers is attributed to factors such as affordability challenges, longer saving periods, and extended mortgage loan terms. London has seen the most significant growth in first-time buyers aged 50 or older, followed by Northern Ireland, the East of England, and the South East. The average detached property now costs £457,222, compared to £268,000 in 2013.

The Mail on Sunday (28/01/2024)  

Mortgage approvals in the UK have reached their highest level in six months, Bank of England data showed on Tuesday. The Bank reported that the number of buyers receiving approval increased from 49,300 in November to 50,500 in December. Remortgaging approvals also rose from 25,700 to 30,800 during the same period. The rise in approvals is attributed to lower borrowing costs and an ongoing mortgage price war. The BoE data also showed the "effective" interest rate - the actual interest paid - on newly drawn mortgages fell six basis points to 5.28% in December, the first drop since November 2021. Thomas Pugh, an economist at RSM, the professional services firm, said falling borrowing costs suggested that "life may be starting to return" to the housing market. However, a fall of £830m in net mortgage lending was also recorded, far below the £250m rise expected by economists polled by Reuters. 

City AM (30/01/2024)   Financial Times (30/01/2024)   Sky News (30/01/2024)   The Times (30/01/2024)  

The number of first time buyers relying on family support has dropped, according to research by Moneybox. In a survey of 1,000 would-be homeowners, the majority (76%) said they plan to buy their first home with their own savings. Just 20% expect to receive financial support from their family to help them raise a deposit and 20% of respondents hope to benefit from inheritance. 

FT Adviser (27/01/2024)