Docklands News

The Sunday Telegraph reports that construction firm Balfour Beatty and housebuilder Places for People are seeking to force Mayor of London Sadiq Khan to renegotiate the terms of a 1,800-home housing scheme on the west side of the Olympic campus in Stratford. The developers have claimed that the scheme is not viable unless it is renegotiated, and say they have incurred £7.3m of losses since 2019 despite making £28m in sales, while the London Legacy Development Corporation, which is responsible for the management of the Olympic Park, has criticised the speed of development and argued that the developer was in default of its agreement. 

The Sunday Telegraph (09/01/2022)  

House prices reached record highs last year, after the stamp duty holiday and extra cash reserves accumulated by households during lockdowns helped to boost prices by 10%. The average UK property price reached £276,091 in 2021, according to figures published by Halifax. House prices increased by more than £24,500 last year, which is the biggest annual rise in cash terms since March 2003. A lack of homes available for sale and historically low mortgage rates have also contributed to the annual increase in prices. It is the fastest rate of growth since July 2007. The rise in prices is expected to slow in 2022 as the rising cost of living eats into households’ disposable income. Wales was the strongest performing UK nation, with prices up by 14.5% compared with 2020 to reach an average of £205,579. House price growth was about 10% in Northern Ireland and Scotland. The northwest had the fastest growth across England, with prices 11.8% higher at the end of 2021 than in the previous year. But Halifax expects the boom to lose steam. Managing director Russell Galley said: "Looking ahead, the prospect that interest rates may rise further this year to tackle rising inflation, and increasing pressures on household budgets, suggests house price growth will slow considerably". 

BBC News (07/01/2022)   Evening Standard (07/01/2022)   Financial Times (07/01/2022)   The Times (07/01/2022)  

The year ahead could bring more stability to the housing market, after a bumper year in 2021 saw frenzied homebuyer activity and prices surging to record highs. Trade association UK Finance estimates £316bn worth of home loans were given in 2021, driven by strong homebuyer activity. It marked the highest total since gross lending reached £357bn in 2007. Looking ahead, James Tatch, principal, data and research at UK Finance, commented: “We're seeing a return to a stable path for new lending, for (2022) onwards.” 

The Guardian (10/01/2022)   The Independent (10/01/2022)  

The construction sector has continued to expand despite being slowed by the Omicron variant and supply chain problems, according to recent figures. The latest purchasing managers' index (PMI) from IHS Markit and the Chartered Institute of Procurement & Supply (CIPS) gave a reading of 54.3 for the building industry in December, compared to 55.5 in November - a reading higher than 50 indicating expansion. It attributed tougher pandemic restrictions and rising incidences of coronavirus for residential construction overtaking commercial building to register the highest growth of any segment. Tim Moore, director at IHS Markit, said: "The worst phase of supplier delays seems to have passed as the availability of construction products and materials continued to turn a corner in December".

Daily Mail (07/01/2022)  

A neighbourhood in east London is set to be transformed into a "mini village" after a huge redevelopment was approved by locals. Residents of Carpenters Estate in Stratford decided on the scheme to build 2,000 homes. There was a 66% turnout for the borough referendum and the plan was passed with a 73% vote in favour. Newham Council said the community would be "a vibrant neighbourhood in the heart of Stratford". As well as new homes, nearly half of the existing homes will be refurbished and upgraded to make them more eco-friendly, the council said, starting this year.

BBC News (05/01/2022)  

Average house prices in the UK hit a record £254,822 in December, according to Nationwide. Prices rose by 10.4% in 2021, with this up on the 10% annual growth recorded in November and the fastest growth rate in 15 years. Wales was the UK region with the fastest house price growth, with values up 15.8% in the calendar year, while London was the slowest-growing region, with prices rising by 4.2%. Values in Northern Ireland rose 12.1% and annual house price growth in Scotland was 10.1%. Reflecting on the report, Robert Gardner, Nationwide’s chief economist, said high demand and low stock of homes on the market had contributed to the soaring prices. However, he suggested it “appears likely that the housing market will slow next year, since the stamp duty holiday encouraged many to bring forward their house purchase in order to avoid additional tax.” He added that the Omicron coronavirus variant “could reinforce the slowdown if it leads to a weaker labour market.” 

BBC News (30/12/2021)   City AM (30/12/2021)   The Guardian (30/12/2021)   The Times (30/12/2021)