Docklands News

First-time buyers take an average of eight years to save enough money for a deposit on their first home, new research has found. According to the Barclays Mortgages' First Time Buyer Index, the average person starts saving for a deposit at 24-years-old and buys their first home when they are 32. The research also found that the number of first-time buyers in the UK has almost doubled in the past year. However, 56% revealed that they would have struggled without support from their family. First-time buyers paid an average of £281,000 for a house in 2021, down £12,600 compared to 2020 but more than the average house price in 2019, which was £249,700. The survey also revealed confusion from potential homeowners about how to even start the process. More than 55% confessed they had no idea where to begin, while 39% didn't know they had to factor in solicitor's fees. Nearly half were unaware of stamp duty. 

Metro (15/03/2022)   The Independent (15/03/2022)  

With the Queen moving out of Buckingham Palace to "work from home" at Windsor Castle, research has found it would cost almost £250m just for a deposit to purchase the London landmark. Mortgage solutions specialist Henry Dannell found that the building's estimated market value is £995m, with monthly mortgage repayments sitting at nearly £1m per month, or £3m for anyone paying off the loan. Other Royal residencies would also come with a hefty price tag, with Windsor Castle costing £124m up-front, while Sandringham would require ‘just' under £200,000 each month in repayments, Henry Dannell calculated.  

City AM (14/03/2022)  

A £1.7bn Docklands project backed by Boris Johnson during his time as London mayor has been put up for sale after the the developer behind the project fell into administration. Six buildings at the Royal Albert Dock development are being sold by Savills. The developer behind the proposals, ABP (London), collapsed earlier this year following an extended period of troubles that owner Xu Weiping blamed on the UK's decision to leave the European Union. The site, just east of Canary Wharf, will have “retail, leisure and residential accommodation, all conveniently located within five minutes of London City Airport and Crossrail", Savills said in the marketing document. 

The Sunday Telegraph (06/03/2022)  

British Land has sold 50% of its share in the 53-acre Canada Water Masterplan to AustralianSuper for £290m. AustralianSuper is one of Australia’s largest pension funds with more than £140bn in assets under management and a growing presence in the UK property market. The joint venture is to begin Phase 1 of the Masterplan, one of the largest London regeneration projects in history, with completion expected in the third quarter of 2021. “The investment by AustralianSuper, who have extensive experience investing in major regeneration schemes, is testament to the strength of British Land’s reputation and best in class development and operational platform", said British Land chief executive Simon Carter. "This new partnership enables us to move faster, delivering new homes and workspace, creating new opportunities for local people and delivering value for our shareholders".

Property Week (08/03/2022)  

House prices increased at the fastest annual pace since 2007 in February to hit a new record high. Halifax said that at 10.8%, the annual rate of house price growth was the strongest since June 2007. The increase took the average house price across the UK to a new record high of £278,123. Property values increased by 0.5% month-on-month. Russell Galley, managing director, Halifax, said a lack of supply continues to underpin rising house prices. He continued: “Looking ahead, as COVID moves into an endemic phase and almost all domestic restrictions are removed, geopolitical events expose the UK to new sources of uncertainty.” The average house price in the West Midlands in February was £234,481 – an annual increase of 9.7%. 

The Independent (07/03/2022)  

The Bank of England is considering ditching the stress test which requires lenders to check if a borrower can afford a mortgage if they have to pay their lender’s standard variable rate plus three percentage points. The Bank is consulting on a plan to replace the stress test with looser Financial Conduct Authority rules which are based on expected future interest rate rises and require a minimum stress test of one percentage point above a borrower’s mortgage. Research suggests that the present stress test restricts 30,000 borrowers a year to smaller mortgages than they wanted. George Nixon in the Sunday Times says that it might seem an unusual time to change mortgage rules, with bills, costs and interest rates rising, but notes suggestions that the stress test has been too restrictive. James Daley from consumer group Fairer Finance said limiting mortgages based on income multiples was a “crude” way of doing things, arguing that a borrower’s outgoings, commitments and career were as important. “As long as people can afford it — including if interest rates go up significantly — I don’t think we should be too concerned about lending people more,” he said. It is noted that in 2010, 10.6% of mortgages were for four or more times a person’s income, while this year 12.9% were at this income multiple or higher.   

The Sunday Times (06/03/2022)