Docklands News

The number of planning permissions granted in England has reached its lowest level since 2014, with only 242,610 homes approved in 2024, a 2% decrease from the previous year. It means that to meet Labour's target of 370,000 permissions, a 53% increase is necessary. Neil Jefferson, chief executive of the Home Builders Federation, commented: "The latest planning figures show that housing supply in the short and medium term is at critical crisis levels." Prime Minister Sir Keir Starmer has pledged to deliver 1.5m new homes over five years, but both the Home Builders Federation and the National Housing Federation believe that current reforms alone will not suffice to achieve this goal. Critics argue that commercial housebuilders are intentionally slowing down construction to control supply and prices, while the industry contends that buyer demand limits building rates. 

Financial Times (06/03/2025)   The Daily Telegraph (06/03/2025)   The Times (06/03/2025)  

Carol Lewis in the Sunday Times discusses the trend of adult children moving back home and its impact on the housing market. Lewis suggests that parents are increasingly purchasing larger homes to accommodate their grown-up children, driven by high living costs and the desire to support their children's financial stability. According to a report by the Institute for Fiscal Studies (IFS), the proportion of UK adults in their twenties and thirties living with their parents has risen by over a third in the past two decades. The IFS calculates that these "boomerang children" are 3.9 percentage points more likely to save £10,000 over two years than renters, averaging £560 a month in savings. Lower marriage and parenthood rates, along with increased ill health in the 25-34 age group, have coincided with the trend of children staying with their parents for longer. Since 2006, marriage rates have fallen from 39% to 29%, and the proportion with dependent children has dropped from 45% to 33%. 

The Sunday Times (02/03/2025)  

The Elizabeth line has transported 500m passengers since its opening in May 2022. The east-west cross-London railway now accounts for one in seven national rail journeys, significantly reshaping travel habits and urban development in the south-east. According to Transport for London (TfL), over 90% of users believe the line has positively impacted their areas. London's mayor, Sadiq Khan, said: "When you invest in high-quality transport infrastructure, it can provide huge benefits for increased jobs, growth and the new housing we need." 

The Guardian (22/02/2025)  

While London is experiencing a demographic shift, with its average age rising from just under 34 years in 2001 to 36 years in 2022, the capital's soaring house prices have made homeownership increasingly unattainable. Analysis by the Centre for Cities shows that many younger residents are migrating to more affordable cities like Milton Keynes and Peterborough. The cost of buying a home  in the capital has far outpaced incomes, with property prices now 14.1 times the median household income, up from 5.9 times in 1998. This affordability crisis has contributed to the ageing population, as London increasingly becomes a city for middle-aged homeowners rather than young first-time buyers. 

The Daily Telegraph (25/02/2025)  

UK house prices are projected to increase by 3.5% this year, driven by lower borrowing costs and a supportive Bank of England, which is expected to cut the bank rate to 3.75% by year-end. According to a poll of 20 housing market experts, prices will continue to rise by 4% next year. Aneisha Beveridge from Hamptons noted: "The slow downward drift in mortgage rates this year should boost prices and sales volumes." However, rental costs are anticipated to outpace house price growth, with a national increase of 4% expected this year. Despite these increases, property values remain constrained by higher taxation and a weak economic backdrop, with inflation projected at 2.8% this year. 

The I (25/02/2025)  

Completion is intensifying among lenders to offer the best mortgage deals to first-time buyers, as the housing market sees strong demand. Mortgage rates have dropped below 4% for the first time since November, following the Bank of England’s interest rate cut to 4.5%. Meanwhile, mortgage rates remain lower than in recent years, with the availability of 95% LTV mortgages fast increasing. Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: "Borrowers with a limited deposit may find it encouraging to see a growth in choice for mortgages available at 95% loan-to-value, now at its highest count in almost five years." 

The Independent (22/02/2025)   The Mirror (22/02/2025)