Docklands News

Mayor of London Sadiq Khan has hailed the proposed Barking Riverside development as "a model of how to fix our housing crisis" and "a blueprint" for the government. The ambitious project aims to create a new town with up to 20,000 homes on 443 acres of brownfield land, previously occupied by Barking Power Station. The plans include 13,046 new homes, with 35% designated as affordable, alongside schools, parks, and commercial spaces. Matthew Carpen, managing director of Barking Riverside Ltd, noted that £400m has already been invested in infrastructure, including a new London Overground station. Mr Khan said: “Barking Riverside is a prime example of a new town in London, a pioneering partnership delivering thousands of new homes for Londoners." 

The Standard (14/10/2024)  

Charlie Nunn, chief executive of Lloyds Bank, says the cost of borrowing for home purchases is "unlikely" to return to the the low levels seen in the past decade. He noted that while mortgage rates are expected to decrease, they will not reach the near-zero rates of the 2010s. Currently, the average two-year fixed mortgage rate stands at 5.36%, with a five-year deal at 5.05%. Nunn highlighted that "mortgage arrears... have actually been declining again since December," indicating some financial stability for homeowners. However, first-time buyers are facing challenges in securing affordable deals, while 1.6m existing borrowers have fixed-rate deals expiring this year. Nunn emphasised the need for "real clarity and purpose" regarding government investment plans to encourage economic growth. 

BBC News (14/10/2024)  

Analysis suggests that around 13% of households do not have a rainy day fund, while a third have just £200 set aside for an emergency. A poll from heating installation firm Boxt shows that as many as 53% of households do not have the minimum recommended savings in order to cope with unexpected costs. It is recommended that emergency funds should equate to at least three months' take home pay, with many experts suggesting that six months' salary should be set aside. The poll shows that the average emergency fund as is currently £1,983. 

The Mail on Sunday (13/10/2024)  

House prices in the UK have risen for the third consecutive month, with a 0.3% increase in September, according to Halifax. The average home value now stands at £293,399, just £100 shy of the record set in June 2022. In London, the average house price stands at £539,238. The North West of England once again saw the highest growth in home prices of any region, with prices rising 5.1% in the past year to £234,355. 

BBC News (07/10/2024)   City AM (07/10/2024)   The Guardian (07/10/2024)   The Standard (07/10/2024)  

Due to an increase in major projects and housebuilders' growing confidence, the UK's construction industry experienced its fastest growth in more than two years in September. The S&P Global construction purchasing managers' index (PMI) rose to 57.2, surpassing analysts' expectations of 53.1. Tim Moore, economics director at S&P Global Market Intelligence, noted: “UK construction companies indicated a decisive improvement in output growth momentum during September.” Factors such as lower interest rates and a stable domestic economy contributed to this growth, although rising demand for raw materials has led to the highest input cost increase since mid-2023. Despite the positive growth, business optimism has dipped to its lowest since April, as companies brace for potential challenges ahead. 

The Daily Telegraph (05/10/2024)   The Independent UK (05/10/2024)   The Standard (05/10/2024)   The Times (05/10/2024)  

As the Budget approaches, attention is shifting to potential interest rate cuts by the Bank of England. David Smith in the Times argues that the housing market and the economy have coped much better with high interest rates in recent years than some commentators had feared. He says: "House prices did not crash but, on the official measure, fell by a mere 3.7% from peak to trough and are now back above where they were two years ago." Measures of housing activity such as mortgage approvals have also recovered well, an upturn which continues. Smith also notes that the structure of the housing market has changed, with less than half of owner-occupiers owning mortgages, and older households owning outright. He suggests the shift to predominantly fixed-rate borrowing has softened the impact of rising rates, allowing borrowers more time to adjust.

The Times (09/10/2024)