Docklands News

Homebuyers are racing to lock in a cheap mortgage deal, the Sunday Times reports, as lenders are regularly increasing mortgage rates and pulling products from the market within 24 hours of launch. Mortgage providers are having to cope with a backlog of applications as buyers and owners try to secure a deal before interest rates and house prices rise further. The Bank of England has increased the base rate six times, from 0.1% in December to 1.75% today, and this has fed through to mortgage rates. A further rise of 0.75 percentage points is expected when the Bank's committee meets again this month. The average two-year fixed rate is now 4.24%, up from 2.86% six months ago, according to Moneyfacts. This race for new deals is also fuelling the product rate rises. Many lenders have already hit their loan targets for the year and so have been quick to take deals off the market when they become overwhelmed by demand. Some have had to pause new applications because they cannot process them fast enough. To avoid this, many are putting up rates so that they do not compete with the best buys for a while. 

The Sunday Times (11/09/2022)  

The average UK house price increased by 0.4% in August, according to the latest Halifax index, hitting a new record high. Across the UK, property values were up by 11.5% annually in August. A typical property now costs a record £294,260, Halifax said – but its report warned that “a more challenging period for house prices should be expected”. Kim Kinnaird, director of Halifax Mortgages, said the latest monthly increase is “relatively modest” compared with recent times, adding: "Over the last year the rate of monthly house price inflation has averaged around 0.9%. A home in Scotland now costs a record high average of £204,362." In London, average house price has increased by 8.8% annually, marking the strongest growth there in more than six years. 

Daily Mail (07/09/2022)   The Daily Telegraph (07/09/2022)   The Guardian (07/09/2022)   The Times (07/09/2022)  

The National Association of Property Buyers has urged the new Prime Minister to address Britain’s housing crisis, calling for “radical change”. The property group said there are growing fears of a rapid slowdown in a market which is “teetering on the brink”. Spokesman Jonathan Rolande said the sector required stability in its leadership and needed widespread reform to help the soaring numbers of people unable to buy or rent a property. “We must see the supply of property increase by empowering smaller builders with easier routes to get planning. Stamp Duty is archaic and needs a re-think which would increase fairness and free up off-market property – give pensioners a zero band when they move downmarket for example,” he said. “The Government should also look at increasing tax breaks for companies opening in areas where cheap housing is plentiful to take some strain off the south east. The new PM must be bold,” he added. Mr Rolande also stressed that many landlords are “keen to exit the market thanks to new regulation and the relatively poor financial return on buy to let.” 

City AM (07/09/2022)  

Construction output in the UK dipped for the second consecutive month in August as concerns about wider economic prospects led to a fall in demand. The S&P Global Construction PMI stood at 49.2 in August – up fractionally from the previous month but still below the crucial 50.0 mark and therefore a second month of contraction. Mark Robinson, chief executive at Scape, the public sector procurement authority, said that Liz Truss must act to provide "stability" to the construction industry. "Another month of declining activity is further evidence of market uncertainty created by inflation as developers focus on getting existing projects over the finish line before pressing ahead with new ones," Robinson said. "With the construction sector's energy bills set to rise more than fivefold, industry leaders will be looking to the new prime minister to tame inflation and deliver some stability for forward planning."

Financial Times (06/09/2022)   The Daily Telegraph (06/09/2022)   The Times (06/09/2022)  

Homeowners are rushing to lock in five-year mortgages with a growing number of lenders offering cheaper loans. Banks and building societies are increasingly offering cheaper five-year deals with concerned borrowers jumping on the opportunity to guarantee their repayments with rates expected to surge next year. Nationwide is offering a two-year fixed-rate deal for people remortgaging with 40% equity at 4.04% with a £999 fee. A five-year deal on the same terms is at just 3.59%. Meanwhile, HSBC's two-year rate for borrowers looking to refinance is 3.99% against a five-year rate of 3.53% while Halifax is offering a rate of 3.59% for two years and 3.41% for five. Meanwhile, City traders are betting that the Bank of England's official interest rate will rise from 1.75% to 4.25% by March, which could send today's best mortgage rates 2.5 percentage points higher. 

The Daily Telegraph (05/09/2022)  

A £1bn masterplan for the Carpenters Estate in Stratford has been submitted to the London Legacy Development Corporation (LLDC), proposing to deliver thousands of new homes across a “left-behind” 23-acre site in east London. The outline plans submitted by Populo Living, Newham Council’s housing delivery company, envisage one of London’s largest-ever estate regeneration programmes, with 2,151 new homes built across the 23-acre site and more than 50% available for social rent. A total of 314 existing homes will be restored to ensure that some existing council tenants and homeowners can remain on the estate. The masterplan will now be submitted to the London Legacy Development Corporation. Phase one of the plan has already begun, with the refurbishment of James Riley Point securing planning permission in May, and will see the first 136 homes completed by 2025. The second phase will see the refurbishment of existing flats, with the full regeneration expected to be completed in the late 2020s.

Construction Enquirer (30/08/2022)   Inside Housing (20/08/2022)