Docklands News

A new report has found that the UK economy faces a perplexing situation as growth indicators improve, yet public finances remain concerning. The Nesta report, "Economic growth and productivity: the ideas", proposes various strategies, including a land value tax and regional devolution, to stimulate growth. The report's nine concepts are well-founded. The most audacious suggestion, but not novel, is to substitute the current property taxes, such as stamp duty and council tax, with a land value tax. As the name implies, the value of the land would determine this, and Charles Goodhart, a seasoned economist, recently suggested it. Other suggestions include addressing the housing problem by switching to a zone-led planning system that streamlines regulations for developers and boosting the economies of various regions of England by providing regional and local governments with a path to devolution and independent budgetary powers.

The Sunday Times (08/09/2024)  

The Resolution Foundation think-tank has urged Chancellor Rachel Reeves to implement significant changes to capital gains tax and inheritance tax in the upcoming Budget, saying reforms could potentially raise over £20bn annually for the Treasury. With a £22bn gap in public finances, the think-tank emphasised that tax increases are a traditional response following elections, with principal economist Adam Corlett saying: "Tax rises are a dead cert and time-honoured tradition." The report suggests that the CGT regime is "ripe for reform" and that changes could bring in £12bn a year. It added that closing "loopholes" in inheritance tax could raise a further £2bn, while levying National Insurance on employers' contributions to staff pensions could potentially generate another £9bn a year. The think-tank has also called on ministers to "get the ball rolling" on longer-term tax reforms to business rates, council tax and road pricing.

Daily Mail (10/09/2024)   The Daily Telegraph (10/09/2024)   The Guardian (10/09/2024)   The Times (10/09/2024)  

Revised planning documents from Reddy Architecture + Urbanism, on behalf of Berkeley Homes, have been lodged with Greenwich Council for nearly 200 new homes in a pair of tower blocks, as part of the developer's £1bn Kidbrooke Village masterplan. The changes would see a column of windows on the taller 15-storey block being removed for structural reasons. The smaller 12-storey block would see its windows being redesigned to prevent the risk of individuals falling from a height. The developer has claimed that none of the window alterations will affect daylight exposure requirements for flats in the buildings. Balcony doors for flats on both buildings will also be amended to move inwards or slide open instead of swinging outwards. Fire safety measures have been added such as fire escapes being separated from back-of-house services on lower floors such as bin storage areas. The new application will be processed by the local authority’s development management department before a formal decision is made.

My London (03/09/2024)  

Annual house price growth in the UK has increased at the fastest rate since December 2022, rising by 2.4% year-on-year in August, according to Nationwide. Month-on-month, however, prices dipped by 0.2%. Economists had forecast a 0.2% rise. The average home now costs £265,375, which is £6,222 more than a year ago. But property values remain approximately 3% lower than the peak levels seen in summer 2022. Nationwide's data also reveals buyers are increasingly willing to pay a premium for energy-efficient homes, with properties rated A or B fetching 2.8% more than those rated D.

Daily Mail (31/08/2024)   Financial Times (31/08/2024)   The Daily Telegraph (31/08/2024)   The Times (31/08/2024)  

The UK's property equity has reached an unprecedented £5.7trn, driven by recovering house prices, according to the Equity Release Council. This figure marks an increase from £5.4trn in the same period last year and surpasses the previous high of £5.6trn recorded in mid-2022. Jim Boyd, CEO of the Equity Release Council, stated: “Your prospects of living comfortably in retirement will rest on firmer foundations if you own your own home and include property wealth in your financial plans.” The study highlights that 55% of UK homeowners are over 55 years old, holding an average property equity of £321,213, which is significantly higher in London. The findings suggest that property wealth could play a crucial role in supporting the older population, especially as government pension spending is projected at £152bn for 2024/25. 

City AM (04/09/2024)  

The number of mortgages approved for home buyers reached 62,000 in July, the highest since September 2022, according to the Bank of England's Money and Credit report. This increase from 60,600 approvals in June indicates a potential upward trend in housing activity for the remainder of the year. Thomas Pugh, an economist at RSM UK, remarked: “The jump in net mortgage approvals to 62,000 in July strongly suggests that housing activity will continue to trend upwards over the rest of this year.” Experts predict further increases in mortgage approvals as interest rates decline, with Rob Wood from Pantheon Macroeconomics forecasting a rise to 65,000 in the coming months. 

Daily Mail (31/08/2024)   Daily Mirror (31/08/2024)   The Daily Telegraph (31/08/2024)   The Independent (31/08/2024)