Docklands News

London Mayor Sadiq Khan says he has met his own housebuilding target for affordable new homes in the capital. He said 63,817 affordable homes were completed between 2015-16 and 2022-23 and that 116,000 affordable homes were started during that time. Mayor Khan has met his target by including figures from the last year of previous mayor Boris Johnson's term in office in 2015-16 when construction of 7,189 affordable homes got under way. Work started on a record 25,658 affordable homes last year, up from 18,840 in 2021/22. Greenwich and Ealing were the best performing boroughs in 2022-23. Each recorded more than 2,000 affordable homes started either by the council or housing associations

BBC News (15/05/2023)   Evening Standard (15/05/2023)   The Guardian (15/05/2023)   The Mirror (15/05/2023)  

Plans to abolish the “feudal” system of leaseholds across England and Wales have been dropped. Michael Gove Gove, the housing secretary, will next month announce a range of measures to protect the 10m Britons who own their homes in a leasehold. The measures are expected to include a cap on ground rents, more powers for tenants to choose their own property management companies and a ban on building owners forcing leaseholders to pay any legal costs incurred as part of a dispute. However, Mr Gove will stop short of abolishing leaseholds altogether, despite a pledge made in January to end it this year. Mr Gove wanted to replace leaseholds for flats with a “commonhold” system, but government sources say that Downing Street pushed back on Gove's plan, with the prime minister's officials arguing there would not be enough time before next year's election to enact such major reforms.

The Guardian (13/05/2023)   The Times (13/05/2023)  

The mortgage market has doubled since the mini-budget, with 5,264 options available in May 2023, up from 2,258 in October 2022. The number of options within the 15% and 25% deposit ranges are the highest on record, suggesting greater stability in the level of choice. The average “shelf life” of a mortgage product is now 25 days, compared with 15 days in October 2022. Fixed mortgage rates rest lower on a month-on-month basis, but it is anticipated that fixed interest rates will start to rise due to volatile swap rates. The average standard variable rate mortgage has continued to climb, standing at 7.37% typically, the highest level since December 2007. Rachel Springall, a finance expert at Moneyfacts, said that borrowers who are coming off a fixed-rate deal may be understandably concerned about the rate difference between their existing rate and those on offer in the present market. 

Evening Standard (17/05/2023)  

Inflated house prices have resulted in more people paying inheritance tax (IHT), which earned the UK Government a record £7.1bn in the last financial year. Frozen tax thresholds are also dragging a growing number of families into paying the tax. IHT is typically levied at a rate of 40% on the value of an estate above the "nil-rate" allowance of £325,000 (£500,000 if you leave your main home to a direct descendant). The £325,000 threshold has not been raised since 2009, despite years of house price rises and asset inflation. Claire Roberts from Moore Kingston Smith says that wills can become complex and if they are not structured right then you can be double taxed. Chris Etherington of RSM UK provides advice on the pitfalls that can reduce the residence nil-rate band. 

The Sunday Times (14/05/2023)  

Canary Wharf Group has reached a 15-year deal with Brookfield, one of the world's biggest providers of renewable energy, to meet almost three-quarters of its electricity demand from wind power. The agreement will allow Canary Wharf to source its clean electricity directly from a renewable energy project, for the first time since 2012. Brookfield will provide the clean energy by growing its renewables portfolio with the development of a new onshore wind farm in Scotland, which is due to begin generating electricity from 2026. Overall, the agreement will meet at least 70% of CWG’s electricity consumption needs, while also providing the potential to power all residents, office occupiers and retailers across the 150 acres of Canary Wharf entirely by renewable energy. The wind farm is part of Brookfield’s pipeline of renewable projects and is expected to be commissioned by 2026.

City AM (09/05/2023)   The Guardian (08/05/2023)  

Annual house price inflation has slowed to its weakest level in more than a decade, according to figures from Halifax. The average house price in Britain is now 0.1% higher than a year ago, having fallen by 0.3% to £286,896 in April. The price drop recorded last month followed three successive months of increases. Annual house price inflation, which peaked at 12.5% last year, is now at the lowest rate since December 2012, when the average UK house was worth less than £167,000. Despite the fall, Halifax said the housing market was now “more stable” than it had been for some time. The lender said the gradual easing of mortgage rates in recent months had given “important certainty to would-be buyers". Kim Kinnaird, Halifax’s director of mortgages, said: “House price movements over recent months have largely mirrored the short-term volatility seen in borrowing costs".

The Times (09/05/2023)