Docklands News

Bellway London has announced the handover of the first homes at its Beckton Parkside development in East London to their new owners. The milestone was marked by the completion of an apartment building at the development, in which 55 home owners received the keys to their apartments. Out of the 391 properties due to be built at Beckton Parkside, consisting of studio, one, two and three-bedroom apartments, a total of 200 are finished and occupied. Currently, the choices available at the development are studio, one, two and three-bedroom apartments within the Parkside Court and Redwood Court apartment buildings, with prices starting from £265,000. Further homes will be released for sale as building work progresses, while all work on site is due to be completed next year.

Building Design and Construction (12/09/2022)  

House prices in London are rising at the fastest rate in six years as buyers who left the city during the pandemic look to return to be closer to work. The average property price is now £554,718, according to Halifax, a rise of 8.8% in the year to August. Mortgage brokers and estate agents have attributed the steep rise to the growing number of people moving back to the city in a reversal of the ­pandemic-­induced exodus.

The Sunday Telegraph (11/09/2022)  

Sentiment among housebuilders has fallen, the FT reports, as concerns over the economic backdrop and rising interest rates continue to take their toll on house sales. 

Financial Times (10/09/2022)  

Nearly two-thirds of would-be first-time buyers have had to cut down their regular savings due to the cost of living crisis, according to research by Aldermore Bank. As the cost-of-living crisis takes its toll on incomes and savings, 72% of prospective first-time buyers say their attempts to purchase a property have been impacted. A third (32%) of would-be homeowners have put their property purchases on hold, anticipating delays of around 20 months. On average, prospective first-time buyers plan to save £43,500 for a deposit, according to the bank's first-time buyer index. Nearly two-thirds (64%) have had to scale back their regular savings, likely increasing the time it takes them to get on the property ladder. And while savings plans are being put on hold, mortgage rates are climbing, following a string of Bank of England base rate hikes. The average five-year fixed mortgage rate on offer for a borrower with a deposit as low as 5% was 4.49% at the end of August, according to Moneyfacts. Back in early February it was 3.35%. 

The Independent (10/09/2022)  

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)