Docklands News

Figures from the Office for National Statistics show that house prices rose by 1.9% in May compared with the same period last year, down from the 3.2% recorded in April and the weakest rate since July 2020. The average UK home is now worth £286,000, £6,000 higher than a year ago but below the £293,000 peak recorded in September last year. In England, the average house price grew 1.7% to £304,000, while in Wales it rose 1.8% to £213,000. In Scotland, the average price was up 3.2% at £193,000 and Northern Ireland saw the average rise 5% to £172,000. In London the average price grew 0.6%.

The Independent (19/07/2023)   The Times (19/07/2023)  

Rising mortgage rates spark demand for smaller properties Rising mortgage rates and the cost of living crisis have led to a surge in demand for smaller properties, particularly flats. The share of first-time buyers seeking two-bedroom flats has increased to 20%, while the demand for three-bedroom houses has dropped to 40%. Flats have lagged behind houses in terms of price growth due to the search for space during the pandemic and concerns over cladding and leasehold charges. However, experts expect demand for flats to increase as buyers seek better value for money. The rising interest in flats is also driven by downsizers, rising living costs, and the appeal of urban areas. Overseas buyers are also taking advantage of discounts in London's central areas. In some areas, flat values are now increasing faster than house values. 

The Daily Telegraph (17/07/2023)  

A report from the Resolution Foundation think-tank suggests that higher interest rates could see house prices fall by as much a 25% over the next five years, taking the average price from £287,000 today to around £215,000. The report argues that higher interest rates could reduce the house-price-to-earnings ratio from its 2022 peak of 8.9 times a household’s income to 5.6 times. The report also shows that household wealth across Britain has fallen by £2.1trn over the past year. It said that a combination of rising mortgage rates, falling house prices and a collapse in the price of government and corporate bonds has led to total household wealth falling to 650% of national income. Although rising rates are squeezing mortgage holders, falling house prices could benefit young people hoping to get on the ladder in the years ahead, and the deposit barrier for first-time buyers could be reduced. 

Financial Times (18/07/2023)   The Daily Telegraph (18/07/2023)   The Times (18/07/2023)  

Newham Council has rejected plans to expand passenger capacity and flying hours at London City Airport, because of concerns about noise pollution. Plans to expand its capacity from 5m passengers to 9m, while also extending its operating hours beyond existing curfews, were blocked by councillors on Newham's Strategic Development Committee, following warnings that the extra flights would result in “materially new and substantial harm” in the form of noise pollution. Green Party councillor Nate Higgins said the airport was a “blight on residents” and that the expansion would have “exacerbated disruption and affected residents who are already unhappy about noise pollution caused by the airport”.

Property Week (11/07/2023)  

House prices fell last month at the fastest annual pace since 2011, according to the Halifax, with the average UK property price in June down 2.6% year-on-year, or £7,500, to £285,932. The drop was more than double the fall of 1.1% in May, marking the largest such fall for twelve years. Prices have come under most pressure in the south of England, falling by 3% over the past 12 months. Prices in London are also down by 2.6% year-on-year to £533,057, the largest fall in the capital since October 2009. Kim Kinnaird, Halifax's director of mortgages, said: "With very little movement in house prices over recent months, this rate of decline largely reflects the impact of historically high house prices last summer supported by the temporary stamp duty cut."

BBC News (07/07/2023)   Evening Standard (07/07/2023)   The Daily Telegraph (07/07/2023)   The Guardian (07/07/2023)  

An under-resourced planning system is causing delays in home construction and discouraging foreign investment in Britain, according to developers. A survey conducted by CMS, the law firm, found that 90% of builders believe the planning system is slowing down development, while an even greater proportion of the 270 questioned said the delays were the result of a lack of planning officers around the country. Martin Evans, a partner in the CMS planning team, said Britain's planning process was “increasingly raised as an issue when inward investors are looking at the UK”. It comes as data from Barbour ABI, a construction analytics group that feeds figures into the Office for National Statistics, showed that planning applications for infrastructure projects had fallen by 45% between April and June. 

The Times (10/07/2023)