Docklands News

Labour is facing criticism as fears of a mansion tax have frozen London’s property market. Reports suggest that the Chancellor Rachel Reeves may impose a 1% levy on property values above £2m, prompting some owners to slash asking prices or withdraw from the market entirely. Estate agents say calls from worried clients have surged, while agreed home sales fell 3% in September, the first annual decline in two years, with high-value areas hit hardest. Property shares also slipped, with Vistry down 1.9% and Barratt Redrow 1.4%. Becky Fatemi of Sotheby’s said clients reacted with "disgust… perceiving no incentive at all to be here," while some told her, "whatever price I need to sell at, just reduce it so I can get it away." Will Watson, of The Buying Solution, added: "Until we know really what the Government is going to do, a lot of people will just sit tight." Liberal Democrats have described the plan as a short-term "tax grab" without meaningful reform. Meanwhile, the Housing Secretary Steve Reed has repeatedly declined to confirm or rule out the tax ahead of the November Budget.

The Daily Telegraph   Daily Mail  

Average private rents in Great Britain have reached record highs, with tenants being asked to pay more than 25% in a year. According to Rightmove, the average advertised private rent outside London reached £1,385 a calendar month in the third quarter of this year, while the average London rent reached £2,736. This is the third consecutive quarterly record for advertised rents this year, indicating affordability for would-be tenants remains stretched. The cost of renting is swallowing up 44% of the average wage, up from 40% five years ago. Landlords are facing challenges due to rising rents, the pandemic, and higher interest rates. The number of homes available to rent is 9% higher than last year, but still 23% below 2019.

Daily Mail   London Evening Standard   The Guardian  

Former Conservative mayoral candidate Lord Bailey has criticised London Mayor Sadiq Khan’s housing policies, claiming they have made private housebuilding "stone dead" by rendering projects unviable through strict affordable housing requirements. Under the London Plan, private developments must include at least 35% affordable homes, with a broader target of 50% across the city. This, critics say, has hindered private sector development and left London far behind its goal of 88,000 homes per year, with just 6% of planned homes expected in the next two years. The Mayor’s office defended progress on council and social housing and ongoing collaboration with the government to boost development. In a separate article in City AM, Lord Bailey argues that abolishing affordable housing targets and stamp duty could increase home construction. He suggests using state-owned land to fast-track 75,000 homes and modernising the mortgage market to assist first-time buyers.

The Daily Telegraph   City A.M.  

London's high net worth individuals (HNWIs) are increasingly opting for smaller properties, according to Alex Michelin, co-founder of Valouran. Many are reducing their property investments as they plan to spend more time abroad. Michelin noted: "While they may no longer move here on a full-time basis... London's appeal as a global city remains strong." The trend follows the removal of non-dom tax status and potential new taxes, including a proposed mansion tax on properties over £2m. Lucian Cook from Savills highlighted growing caution in the market due to these changes.

City A.M.  

After a decade of renting in London, India Block reflects on her experiences with various landlords and letting agents. In an article for the Standard, she describes numerous challenges, including poor maintenance, deposit disputes, and eviction threats. Despite being a property journalist, she faced significant difficulties in the rental market. The author highlights the need for systemic change, advocating for a rent freeze and increased social housing to prevent further displacement of families and young people. Block concludes: "The private rental system is a failed project."

London Evening Standard  

Southall is set to welcome a new neighbourhood, Quarter Yards, featuring 1,273 new homes and over 105,000 sq ft of commercial space. Marcus Blake, managing director at St George, noted strong demand for housing in the area, driven by excellent transport links and amenities. The development is part of an 88-acre regeneration project called The Green Quarter, overseen by Berkeley. The Elizabeth line has significantly boosted construction and rental prices in well-connected areas, with some locations seeing price increases of over 70%, according to Goodlord's managing director, Oli Sherlock.

City A.M.