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Property purchases are collapsing as surveyors have dramatically reduced property valuations in the aftermath of the COVID-19 pandemic. As house prices fall in many areas, surveyors have started to be more conservative with their estimates amid fears that properties could be overvalued. A lack of post-coronavirus housing market data has contributed to this issue, experts said. If the valuation is significantly lower than the agreed sales price, this can cause mortgage lenders to withdraw offers, and sales to fall apart. This phenomenon is known as a “down-valuation” and occurs when a bank’s surveyor values a property. Estate agents and mortgage brokers have reported cases where down-valuations have knocked tens of thousands of pounds off a property’s price. In one instance, a surveyor valued a property at £300,000 less than the agreed sale price. Industry experts said lack of data was posing a major problem for surveyors, many of whom have been unable to visit properties in person.
The Daily Telegraph (24/07/2020)
The Government’s Help to Buy scheme looks set to be extended as housebuilders warn that home sales are at risk of collapse because of construction delays caused by COVID-19. An announcement on whether to extend the stop date to the Government's loan scheme for new-build homes could come as early as this week, the FT reports. The present scheme is due to end in April 2021. However, applications will be accepted only for properties that are completed by December 31. Construction delays caused by the pandemic, which led most of the larger housebuilders to down tools on sites temporarily, means that thousands of agreed sales on homes that had been scheduled to be completed by the end of the year could fall through if the deadline is not extended.
The Times (28/07/2020) Financial Times (28/07/2020) The Guardian (28/07/2020)
Berkeley Homes has revealed plans for a 26.2-acre development between Stratford and Canary Wharf, not far from West Ham station. TwelveTrees Park will comprise 3,838 homes, with an assortment of studios, one-, two-, and three-bedroom homes available, with prices starting at £385,000. Penthouses will also be available, as will apartments purpose-built for rent and homes available under shared ownership. Homes can be purchased off-plan, with completions due to start in 2023. In addition to the homes, the TwelveTrees development includes over 25,000 sq ft of commercial space, including shops and restaurants, and a 4.5-acre WiFi-enabled park.
Evening Standard (22/07/2022) Property Week (22/07/2022)
Canary Wharf Group has revealed proposals by architects Allies and Morrison for a 3.8m sq ft development on the North Quay site at Canary Wharf. A flexible masterplan has been submitted to the London Borough of Tower Hamlets, that includes up to 1.6m sq ft of residential space, up to 640,000 sq ft of retail, leisure and/or community uses, and up to 2.5m sq ft of commercial office space. Sir George Iacobescu CBE, executive chairman of Canary Wharf Group, said: “Our plans offer a great new place to work and to live, with the extensive public realm, high-quality retail, and new connections, next to a brand new railway station… In a dynamic and unpredictable world, the extensive flexibility in this plan will enable us to respond quickly to market demand within a framework agreed with the local authority”.
Architects Journal (20/07/2022) PBC Today (17/07/2022)
Almost a third of people who plan to buy their first home within the next year say their finances have improved during the coronavirus pandemic. Some 32% of people hoping to get on the property ladder felt this way, according to the research from YouGov, which suggested it may be because they had been able to save more money with fewer opportunities for discretionary spending. Among existing homeowners, 18% reported their finances had improved, while 36% said they had diminished. Starter home buyers have also struggled to get a mortgage with 53% finding they had a limited choice of competitive rates. People planning to sell a property within a year were particularly likely to say they had been negatively affected financially by the crisis, with early 38% saying it had made their finances worse.
The Daily Telegraph (17/07/2020) Daily Express (17/07/2020) The Independent (17/07/2020) The I (17/07/2020)
Banks are turning away some mortgage applicants who took repayment holidays amid the coronavirus crisis, despite ministers and credit agencies saying pausing repayments would not impact their ability to borrow, reports the Mail on Sunday. Sources said borrowers who made use of payment holidays have since received initial confirmation of their credit worthiness when applying for new mortgages, only to be denied a loan after a more detailed analysis. One mortgage source said it was “reasonable” for banks to take a dispassionate view rather than lend to someone whose financial position was now uncertain. MP Siobhain McDonagh said she intends to write to Chancellor over the matter.
Mail on Sunday (19/07/2020)