Docklands News

A major multi-billion pound regeneration project at Canada Water has drawn sharp criticism after developer British Land proposed cutting affordable housing from 35% to just 3%, citing rising construction costs and new building regulations. The controversial move, submitted via a Section 73 planning amendment, sparked over 1,100 public objections and accusations of broken promises. With Southwark Council missing deadlines to respond, Mayor Sadiq Khan has now called in the application and will make the final decision. While British Land argues the development is no longer financially viable without cutting affordable units, critics, including local Liberal Democrat councillors, call the revised plan “insulting” and a betrayal of residents. The Greater London Authority has acknowledged the scheme’s financial challenges but has yet to decide on a way forward. The original 2020 Masterplan had committed to nearly 3,000 homes, with over a third designated as affordable.

My London (06/12/2025)  

Ballymore and Penta Real Estate are moving ahead with building 681 new homes in London, despite a wider slowdown in the capital’s residential development. The joint venture will deliver flats across Canary Wharf and Nine Elms, with construction already under way and first residents expected in 2028. Ballymore, led by managing director John Mulryan, says accelerating projects is vital amid constrained supply. For Penta, known for nearly 50 central European schemes, this marks its UK market debut with ambitions to expand across housing, offices and hotels. The Times says their commitment contrasts with other developers pausing schemes due to planning barriers and rising costs, with only 2,158 homes starting construction in London in early 2025. Both firms say London’s long-term demand still makes it a strong investment opportunity. 

The Times (10/12/2025)  

UK house prices were broadly flat in November, rising by just £138 month-on-month to a record £299,892, according to Halifax. Annual growth slowed sharply to 0.7%, the weakest since March 2024, reflecting a stable but subdued market shaped by budget uncertainty, high mortgage rates and softer employment. Affordability has improved to its best level since 2015, with mortgage costs as a share of income at a three-year low. Regional trends remain varied: Northern Ireland led the UK with 8.9% annual growth, followed by the North West at 3.2%. Scotland recorded 3.7% growth, Wales 1.9%. Prices fell in London and the East and South East of England, with London still the most expensive region at £539,766. Analysts expect more activity in early 2026, supported by falling interest rates and stable mortgage approvals. The new council tax surcharge on £2m+ homes is expected to have only limited market impact due to the small number of affected properties.

City AM (06/12/2025)   Daily Express (06/12/2025)   Daily Mail (06/12/2025)   The Guardian (06/12/2025)   The I (06/12/2025)   The Standard (06/12/2025)   The Times (06/12/2025)  

The construction sector experienced its most significant output decline in five and a half years, according to a recent S&P Global survey. The purchasing managers' index (PMI) fell to 39.4, indicating a sharp downturn across all sub-sectors, particularly housing, which dropped to 35.4. Investor confidence waned due to a lack of new projects and budget speculation. Thomas Pugh, chief economist at RSM, noted: "Pre-budget speculation about large tax rises was having a significant negative impact on business confidence." However, he added that sentiment should improve in the months ahead as confidence improves after the Budget. 

BBC News (05/12/2025)   City AM (05/12/2025)   The Guardian (05/12/2025)   The Standard (05/12/2025)   The Times (05/12/2025)  

According to Moneyfacts, the number of low-deposit mortgage options has reached its highest level since 2008, benefiting first-time buyers. As of December, there were 476 products for 5% deposits and 917 for 10% deposits. Average two-year fixed mortgage rates fell to 4.86%, while five-year rates dropped to 4.91%, marking the lowest since September 2022. Rachel Springall, a finance expert at Moneyfacts, explained: "The improvement in cost and product availability of mortgages paints a positive picture for borrowers as we edge towards the new year." Overall, 7,054 mortgage options were available in December, up from 6,918 in November. 

The Independent (09/12/2025)   The Mirror (09/12/2025)   The Standard (09/12/2025)  

A London Assembly report warns that the rapid growth of energy-intensive data centres is delaying new housing in the capital, exacerbating the city's housing crisis. Some developments in west London were temporarily stalled after the electricity grid reached full capacity, highlighting energy supply as a constraint on housing and economic growth. While data centres currently account for under 10% of the UK’s electricity demand, usage is expected to rise sharply by 2050, with over half of new centres planned in and around London. The committee recommended creating a separate planning category for data centres and called on long-term investment in the grid to support both housing and digital infrastructure. The government is exploring tailored solutions, including input from the AI Energy Council, while the Mayor is urged to adopt a dedicated data centre policy in the next London Plan.

BBC News (04/12/2025)