Docklands News

House buyers in London are ‘gazundering' sellers by demanding reductions to an agreed sale price just before an exchange is about to take place. According to property experts gazundering is gathering pace as the housing market slowly begins to respond to wider economic problems. The market is showing the first signs of cooling amid rising interest rates and the cost of living squeeze. London law firm Osbornes Law estimated gazundering was currently happening in around half of all house sales. It said homebuyers justify the last minute price reduction by citing an issue from a survey such as damp. Simon Nosworthy, head of residential conveyancing at Osbornes Law, said: “Price chipping is a sign that the market is weaker and that the pendulum of power is swinging from the seller to the buyer.”

Evening Standard (30/08/2022)  

Experts say UK house prices could fall by 7% in the next two years as mortgage rates soar and the cost of living crisis gets worse. With the Office for National Statistics last week reporting a sharp drop in annual growth and Halifax data showing that prices fell for the first time in more than a year in July, analysts at Capital Economics have forecast a two-year downturn, with house prices falling by around 5% in 2023 and a further 2% in 2024. The experts believe demand will fall as buyers see budgets and confidence hit by rising mortgage rates, high inflation and a potential recession. Andrew Wishart, a senior property economist at Capital Economics, commented: “Areas where house prices are highest relative to incomes are most vulnerable. London and the South East are therefore likely to see the largest falls and the North and Wales the smallest.” 

Daily Express (29/08/2022)   Daily Mail (29/08/2022)  

The government has begun its probe into the property-buying process. It is calling for evidence from estate agents, solicitors and mortgage lenders over the next eight weeks in an attempt to make buying a home "cheaper, faster and less stressful". The existing conveyancing process leaves sellers vulnerable to 'gazundering', when a property buyer lowers their offer just as contracts are about to be exchanged. Buyers also need to be aware of 'gazumping', when buyers who have already put down an offer are outbid by rival buyers. Meanwhile 'gazanging' is when sellers change their minds and decide to 'hang tight' - taking their property off the market part way through the sales process. 

Evening Standard (29/08/2022)  

Next month, Ballymore and Oxley will launch a collection of 42 waterfront apartments at Riverscape, following the successful launch of the new development on the edge of the River Thames last year. On Saturday, September 17th, they will unveil The Leslie in East London; set between Lyle Park to the west and Royal Wharf to the east, and a short walk from Pontoon Dock and West Silvertown DLR stations, the apartments are spread across 10 floors, with 21 one-bed, 14 two-bed, and seven three-bed homes. Defined by spacious open-plan living, generous kitchens, and expansive windows that flood each room with natural light, the apartments offer both a comfortable remote working space as well as room to entertain. The Leslie, scheduled to be complete between late 2023 and early 2024, is part of the Riverscape development, comprised of 769 new homes across 10 buildings, ranging from eight to 16 storeys. Prices start at £399,500 for a one-bedroom apartment. 

Property Wire (25/08/2022)  

The Manhattan Loft Corporation (MLC) has negotiated an £80m refinancing loan with real estate investment manager, for its development of a 42-storey residential tower in Stratford. The Manhattan Loft Gardens Tower, in the Queen Elizabeth Olympic Park, includes 204 apartments and a seven-floor hotel. “We very much appreciated Tristan Capital Partners’ partnership and solution-based approach to the refinancing of our award-winning residential tower", said MLC finance director Lloyd Hunt. "This facility provides us with the flexibility we need to further optimise the asset for all of our stakeholders, and especially the residents and local community".

Property Week (19/08/2022)  

Property prices in London are set to fall by 12% over the next two years as buyers in the country's most expensive market are hammered by the cost of living crisis and surging interest rates, according to new research. Home values in the capital will drop nearly twice as far as in the rest of the country, which will see an average price fall of 7% by the end of 2024, according to Capital Economics. London house prices will fall by 8% in 2023 and by a further 4% in 2024, it forecasts, meaning the average £538,000 London property will lose £65,560 in value. The capital will be worse hit than the rest of the country because homes are so much more unaffordable in relation to earnings. This means buyers are much more heavily reliant on the mortgage market and are therefore most exposed to rising interest rates. 

The Dally Telegraph (24/08/2022)