Docklands News

A record number of homeowners are unlocking cash from their properties to support their children and grandchildren. Some 23,395 people borrowed a total of £1.53bn against their home in the first quarter of 2022, with a record average loans size of £131,781, according to the Equity Release Council, a trade body. In the same period in 2016, the average loan was £89,189. In March 2016, the average house price in Britain was £209,946. It was £280,229 in February this year - a rise of 33.5%. "The popularity of equity release is the natural result of an ageing population and a property market where growth has outstripped inflation," said David Burrowes of the ERC. 

The Sunday Times (01/05/2022)  

Analysis by data firm Twenty7Tec shows that thousands of people looked to lock into a long-term mortgage deal last month, with homeowners hoping to get in ahead of further interest rate rises. Almost 7,000 people searched for a mortgage with a fixed rate of more than 10 years in April, a 72% increase on the same month last year. There was a 26% increase in the number of borrowers searching for a 10-year fixed mortgage and a 25% spike in those seeking a five-year fix. The respective number of borrowers searching for two and three-year fixed-rate mortgages fell by 35% and 57% year-on-year in April. On average, people are fixing mortgages for a year longer than they were a year ago. 

The Daily Telegraph (04/05/2022)  

While prime London property prices have remained largely flat on a year on year basis, some postcodes are seeing average sale prices climb by as much as 114%. Research shows that London's high-end homes commanded an average selling price of £3,229,509 in 2021, down when compared to 2020 albeit by just -0.8%. According to the research by debt advisory firm Henry Dannell, Camden's WC1A postcode saw the average sold price for £2m+ properties increase by 114%. A total of 30 prime London postcodes have seen positive movement where the average sold price for homes at £2m or above is concerned. However Westminster's WC2E postcode has endured the largest market decline, with sold prices down by -71% on an annual basis.

City AM (27/04/2022)  

The mounting cost of doing business in London is deterring developers from building new tower blocks in the capital, with applications for buildings of 20 storeys or more down 13% on 2020 figures. 

Financial Times (25/04/2022)  

Capital Economics forecast that house prices will keep rising this year, up by 9% at the end of 2022 compared with 2021. But analysts at the firm say homeowners should brace for a 5% fall in values across 2023 and 2024 brought on by a doubling of the average mortgage rate to 3.2% at the end of the year and a peak of 3.6% in mid-2023. Andrew Wishart at Capital Economics, said: “That would be the sharpest rise in mortgage rates since 1990.” Wishart expects the interest rate on new mortgages to rise from 1.6% at the start of this year to 3.6% by late 2023. 

The Daily Telegraph (27/04/2022)   The Times (27/04/2022)  

A new analysis of first-time buyer house prices looked at the cost of purchasing a first home before the start of the pandemic in December 2019 and how it has changed. The research shows that across Britain, the average first-time buyer paid £195,267 prior to the pandemic. Today this has climbed 17% to £228,627, meaning they are now paying £33,000 more, according to the data from Stipendium. First-time buyers in Wales have seen the largest percentage increase at 22%, while in London it stands at 8%, the lowest in the country. In Kensington and Chelsea, first-time buyers have seen the largest monetary increase, at £118,559. 

City AM (26/04/2022)