Docklands News

Gen Z homebuyers are facing unprecedented challenges, with average mortgage repayments reaching £1,739 a month, nearly double that of millennials, who paid around £863. Research highlights that Gen Z is expected to pay £104,000 in the first five years of their mortgages, compared to £51,800 for millennials. The surge in costs is attributed to soaring house prices and rising mortgage rates, which are unlikely to return to pre-COVID levels. Millennials paid an average of £246,000 for their homes, significantly more than previous generations. As a result, while baby boomers and Gen X have repaid about 60% of their loans by the halfway point of a typical 25-year mortgage, millennials are projected to have paid off just shy of 40%. 

The Times (07/10/2024)  

Paul Bassi, chief executive of Real Estate Investors, believes that the property market is “at or near the bottom,” indicating a potential recovery. He anticipates "a period of positive activity and the potential for capital and rental growth," helped by lower interest rates and increased demand. “A normalising market backdrop will contribute to more rapid sales and debt repayment, allowing us to execute our strategy and return capital to shareholders, whilst continuing to pay a covered dividend,” he said.  Despite a challenging first half of 2024, with transaction activity 40% below the five-year average, the Bank of England's recent interest rate cuts may bolster the market.  

City AM (24/09/2024)  

New build homes in the UK have long faced criticism for issues such as poor quality, snagging problems, and long construction times. However, improvements are underway due to the New Homes Quality Board, a non-profit organisation with redress powers established by the government to ensure higher standards in new housing developments. Property sales of new homes have also increased, with 231,000 completed in 2023

Daily Mail (25/09/2024)  

Homeowners anticipating further reductions in mortgage rates may be disappointed as the Bank of England's monetary policy committee has maintained the base rate at 5%. Aaron Strutt from Trinity Financial cautioned: "The likelihood of fixed rates coming down significantly more is slim," suggesting that locking in a deal now could be wise. The lowest two-year fixed rate currently stands at 3.99% from Santander, while Barclays offers a three-year fix at 3.88% for Premier customers. Nicholas Mendes from John Charcol predicts that by year-end, five-year rates could drop to around 3.5%. David Hollingworth from L&C Mortgages advises borrowers to start considering their options three months before their current deal ends. 

The Sunday Times (22/09/2024)  

Phil Spencer says London's housing market is facing significant challenges, characterised by unaffordability and stagnation. The TV property guru is urging the Government to implement crucial tax reforms in the upcoming budget to stimulate movement in the market. He highlights the impact of proposed increases in Capital Gains Tax on rental properties, remarking: “I worry greatly unless landlords are incentivised about what will happen to society.” Spencer also advocates for incentives for downsizers, suggesting that easing their transition could alleviate housing shortages. He believes that without substantial changes, including a review of the planning system, the market will struggle to recover. 

The Standard (24/09/2024)  

Plans for a 33-storey tower block next to the Thames in Greenwich have been approved, after previous plans for a taller block were scaled back. Criterion Capital's new proposal for the Telcon Way site was discussed at a planning meeting for Greenwich Council on September 17th, with the two floors of the tallest tower being redistributed to the two other blocks in the scheme, bringing their heights up to 24 storeys each. In total, the developer will deliver 564 new homes to the site. “We believe the scheme now responds to the concerns raised and the building heights are now proportionate to the surrounding context", said Tim Bystedt, head of design at Criterion Capital. "Not only is the site providing much needed housing, including 35% affordable, we are also making 65% of the site available for public space".

BBC News (19/09/2024)