Docklands News

British house prices will fall by up to 10% as interest rate rises cause a global property crash, leading economists have warned. Property prices had become “detached from reality” and will fall between 5% and 10% in the UK over the next 18 months, according to forecasts from Capital Economics, a research consultancy. Neil Shearing, of Capital Economics, commented: “We think the shift from boom to bust in housing will shave between 0.5% and 2.0% off GDP in the US, UK, Canada, Australia and New Zealand over the next couple of years.” In Britain, the hit to GDP will be between 1% and 1.5%, he added. In the UK, the average rate on a two-year fixed-rate mortgage has seen the biggest six-month rise in nearly 20 years. Pantheon Macroeconomics, another analyst, expects the average rate will hit 3.2% this month, up from 1.53% in November. This will cost the average buyer an extra £3,600 per year in mortgage bills.

The Daily Telegraph (11/07/2022)  

A technology company that produces robot cameras for property viewings claims virtual tours increase property value. Estate agent media provider, Giraffe360, has revealed that on the sales market, virtual tour properties carry an estimated premium of 5.6% compared to homes marketed using more traditional techniques. With today's average house price, this is a cash premium of £15,648. On the rental market, the virtual tour premium sits at an estimated 8.5% which equates to an extra £94/month in rental income. Giraffe360 CEO, Mikus Opelts, claimed: “Virtual viewings... have an ability to make viewers fall in love with a home to such an extent that they're willing to pay a little extra to secure it."

Daily Express (13/07/2022)  

Banks are hiking mortgage prices as often as twice a week leaving borrowers racing to lock in deals before costs rise further. Lenders are seeing surging demand if they suddenly become one of the cheapest firms on the market after rate rises by rivals. "If they become the cheapest on the market, they are increasing rates by large enough margins to appear unattractive for a time so that they can maintain service levels," Nick Morrey, from the mortgage broker Coreco, said. "In previous years we have seen a 'race to the bottom' as lenders tried to attract new borrowers, but now the property market is so strong that they are struggling to process the sheer volume of applications." 

The Sunday Times (10/07/2022)  

Builders have moved in for the first phase of the £3.5bn Silvertown regeneration scheme in east London. More than 6,000 new homes are planned for the next decade, while 10,000 new jobs are expected to be created. Homes England will provide £233m of infrastructure loan funding to help develop the neighbourhood, with projects including a new pedestrian and cycle bridge across Royal Victoria Dock, and a new link to Custom House Crossrail. The first homes are expected to be ready in 2024. Once the project is completed in the early 2030s, it will serve 13,000 residents. The Millennium Mills building will also be restored to create new business workspace, as well as an area for cultural and community events.  Built in 1933, the building is an east London landmark which has appeared in many film and TV shows after closing in 1981. Several failed attempts to bring the building back into use have been made over the last 40 years, for example as an aquarium or luxury flats. Mayor Sadiq Khan said he was pleased to finally see solutions to a location that has "vexed planners and politicians alike" for four decades. He said: "The regeneration of this area is long overdue and I’m excited by the plans for Silvertown which respect its past whilst embracing east London’s vibrant and creative future". 

BBC News (05/07/2022)   Property Week (05/07/2022)  

Richard Desmond is reportedly reviving plans for a controversial £1bn housing development in London's Docklands - which was blocked by the Government last November, overturning initial approval by former Housing Secretary Robert Jenrick. The businessman has held early-stage discussions with lenders to bankroll the Westferry Printworks scheme on the Isle of Dogs, which could create 1,500 new homes. Mr Jenrick's verdict, which contradicted the advice of the planning inspector, was quashed after a High Court case filed by Tower Hamlets Council found "apparent bias" in favour of Mr Desmond. 

The Sunday Telegraph (03/07/2022)  

Requests for property valuations have hit their highest since the start of the year, the latest research has revealed. House price growth has been slowing since the beginning of the year, according to the country’s most-watched indexes. While still breaking new records, the Nationwide House Price Index revealed that the figure grew 10.7% in June, to an average of £271,613. However, growth was more subdued than in the previous month, which saw the cost of a home climb 11.2%. House prices have been steadily rising over the last decade but have exploded since the start of the pandemic. 

City AM (06/07/2022)   The Daily Telegraph (06/07/2022)