Docklands News

Analysis by The Mail on Sunday reveals the interest payments on fixed-term mortgages are set to increase by 55% this year to £500 a month. It also reveals the average cost for fixed-term holders is set to more than double from £322 at the end of last year to £701 a month by 2027. Meanwhile, for the minority of people on tracker mortgages, the increase in monthly interest is even greater as the average monthly repayment is set to rise from £436 to £950 over the next five years. Alice Guy, head of pensions and savings at Interactive Investor, said: “The UK is facing a staggering increase in mortgage costs in a story that is only just beginning to unfold. There are 6.9m UK mortgage-holders who are on fixed deals and, so far, only a few of them have moved on to new higher-rate deals. That means most of the pain is still to come.” 

The Mail on Sunday (19/03/2023)  

Around 10,000 homes are being built in Canning Town and Custom House, just north of the Royal Docks, attracting buyers from across the capital, lured by below-average property prices and the chance to be part of a East London community. The area also has tremendous transport links, with Canning Town on both the Jubilee line and the DLR, and Custom House on the Elizabeth line. A mix of studio, one, two and three-bedroom flats with their own outdoor space and access to impressive amenities are available at Mount Anvil's Queens Cross. Residents there enjoy the use of a Peloton-powered gym, indoor cycling and yoga room, a rooftop running track, a swimming pool, sauna, business lounge and cinema room. Prices begin at £451,000 for a studio apartment. Elsewhere, L&Q at Brunel Street Works offers shared ownership duplexes from £141,250 for a 25% share of the market value of £565,000. Not far away lies Goodluck Hope, a waterfront scheme of flats, lofts and three-bed townhouses. Residents get membership of the onsite 1595 Club, which has a gym, pool, and cinema. From £427,500 for a studio, while the final one-bed shared ownership flat is from £115,000 for 25% of £460,000. Finally, a single one-bedroom apartment is left at Orchard Wharf. The £460,000 price tag buys a 602 sq ft, eight-floor flat, featuring an all-in-one kitchen/living/dining room with high-gloss units and fully fitted appliances, a utility cupboard housing a washer/dryer and a balcony off the bedroom

Metro (13/03/2023)  

The Office for Budget Responsibility (OBR) expects house prices to fall 10% from a peak seen in Q4 2022, while transactions will drop by 20% from the high seen in the closing quarter of last year, reducing tax revenues from stamp duty by £5bn next year alone. There were 1.48m transactions in 2021 and 1.26m last year. They are projected to fall to 1.09m this year and 1.03m in 2024, but to rise to 1.35m by 2027. The OBR says the decline in values and activity will be driven by “'low consumer confidence, the squeeze on real incomes, and the expectation of mortgage rate rises.” The OBR also says the average rate on outstanding mortgages is expected to peak at 4.2% in 2027, 0.8 percentage points lower than forecast in November, before falling to 4.1% at the beginning of the following year. 

Daily Mail (15/03/2023)   Metro (15/03/2023)   The Daily Telegraph (15/03/2023)   The Times (15/03/2023)  

Total values of new mortgage lending fell by a third (33.5%) in the final three months of last year, compared with the previous three months, Bank of England data show. The £58.4bn of lending agreed was 24.5% less than a year earlier, according to Bank figures. The share of mortgages advanced in the fourth quarter of 2022 with LTV (loan-to-value) ratios above 75% decreased by 1.4 percentage points compared with the previous quarter, to 37.0%, but remained slightly higher than a year earlier. The value of outstanding balances with arrears increased for the first time since the first quarter of 2021, by 4.6% to £13.6bn. Around 72,000 homeowners are now behind on payments. The share of mortgages in arrears rose from 0.78% to 0.81% of total outstanding.

Daily Mail (14/03/2023)   The Daily Telegraph (14/03/2023)   The Independent (14/03/2023)  

A new consumer duty placed on financial services providers could lead to lenders being more cautious and fewer people able to access mortgages, the chief executive of a trade association has said. David Postings told UK Finance's annual mortgage lunch that the measure was a "well-meaning idea". Mr Postings also said there is a need to remain vigilant as the housing stock changes to meet environmental objectives. He said: “I worry that the easy policy option – pushing lenders to go green at a pace that essentially just greens balance sheets and not the housing stock – might prove hard to resist optically. This approach could have the unintended consequence of either creating energy-inefficient properties that are un-mortgageable or penalising those homeowners who cannot make the change easily.”

City AM (13/03/2023)   Daily Mail (13/03/2023)   Evening Standard (13/03/2023)   The Independent (13/03/2023)  

The cost of a mortgage on a first home is typically around £42 per month cheaper than renting, but the difference has reduced and in some parts of the UK renting may be the less expensive option, analysis suggests. First-time buyers could typically pay around £971 per month for a three-bedroom home, while renters would potentially be forking out around £1,013, according to calculations by Halifax. The difference of around £500 per year between buying and renting is down from a peak reached in 2016, when owners were saving £1,567 annually. 

City AM (15/03/2023)   Daily Mail (15/03/2023)   The Daily Telegraph (15/03/2023)   The Guardian (15/03/2023)