Docklands News

A typical first-time buyer in 2023 would have needed to stretch their loan out for half a century to achieve the same level of affordability that they would have had across a 30-year mortgage term in 2022, according to David Postings, chief executive of UK Finance. He highlighted the impact of rapid interest rate rises on first-time buyers and suggested that house prices may stagnate as affordability remains stretched. The number of mortgages handed out to first-time buyers in 2023 was the lowest since 2013, down 22.4% compared to the previous year. Despite this, 287,000 loans with a value of £58bn were advanced to first-time households. The squeeze on incomes has seen mortgage arrears rise, but stricter affordability tests have protected lenders and borrowers to a great extent, Mr Postings said. As a result, arrears remain at low levels when looking back at historical comparisons, he added. 

The Daily Telegraph (09/03/2024)   The Independent (09/03/2024)  

The average shelf-life of a mortgage product has dropped to 15 days, the lowest in six months, according to Moneyfacts, down from 28 days at the start of last month. This week alone, five lenders announced rate hikes, including several of the UK's largest banks. Santander, NatWest, the Co-op Bank and Principality Building Society upped rates with Halifax increasing some of its rates from tomorrow. Nicholas Mendes, mortgage technical manager at broker John Charcol said: “Mortgage rates are continuously being repriced even to the extent, we've seen lenders reprice twice in a week, with some lenders providing little to late notice of a rate change.” He added: “Mortgage brokers have called for a 24-hour rate notice pledge to help ensure clients are able to secure the best deal, which encompasses consumer duty. Unfortunately, mainly building societies have agreed with only NatWest being the only high street lender recently pledging to the 24 hours or provide as much notice as possible.” 

Daily Mail (13/03/2024)  

Canary Wharf Group (CWG) has completed a £84m forward sale of 294 affordable homes - part of the Wood Wharf residential development - to CBRE’s UK Affordable Housing Fund (AHF). Canary Wharf is set to double the size of its residential community, currently around 3,500 people, over the next few years as CWG leads efforts to repurpose the financial district. This involves residential developments including the 1,308-home Wood Wharf scheme, as well as boosting the area’s leisure and life science offerings.

Property Week (01/03/2024)  

Buyers are returning to the housing market as lower mortgage rates tempt them back, according to the latest monthly reading from the Nationwide. The average house price in the UK has risen annually for the first time in over a year, reaching £260,420. This is 1.2% above where it was this time a year ago. Nationwide said that after having risen 0.7% in January prices increased by the same amount again last month. The building society’s UK chief economist, Robert Gardner, said: “The decline in borrowing costs around the turn of the year appears to have prompted an uptick in the housing market.” However, he cautioned that “near-term prospects [for the housing market] remain highly uncertain”. 

Daily Mirror (02/03/2024)   The Guardian (02/03/2024)   The i (02/03/2024)   The Times (02/03/2024)  

Residential property sales in January reached their lowest level since 2013, with only 82,000 transactions recorded, according to data from HMRC. This represents a 12% decrease compared to the previous year. However, it is worth noting that January typically sees a decline in sales, usually between 20% and 30%. On a positive note, seasonally adjusted residential transactions showed a month-on-month increase for the first time since August 2023. Despite this, the figure remains the lowest for January since 2013. The lack of new homes entering the market has created a stalemate for transactional mobility.  

City AM (02/03/2024)   Evening Standard (02/03/2024)   The Express (02/03/2024)   The Independent (02/03/2024)  

The average fee charged on a fixed-rate mortgage, excluding no-fee products, has increased by £46 since March 2023, reaching £1,141. According to Moneyfactcompare.co.uk, the proportion of fixed-rate mortgage deals offering perks such as free legal fees or cashback has decreased. The website found that just over a third (35%) of fixed-rate deals do not charge a product fee, down from 43% at the start of March last year. 

Evening Standard (04/03/2024)   The Daily Mirror (04/03/2024)   The Independent (04/03/2024)