Docklands News

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)  

Official data shows that in July, London's house prices fell short of the UK as a whole, but rents increased more quickly in the capital than in other areas. The Office for National Statistics said that the average price of a home in London dropped to £521,000 in July at an annual pace of 0.4%. In comparison, the UK saw an annual growth of 2.2% to £290,000. The data highlights the disparity between property prices in the nation's capital and the rest of the country, where prices increased in July, continuing a trend that has been mostly stable since 2016. On the other hand, the ONS reported that private rentals in London increased by 9.6% in the year ending in August, outpacing the 8.4% increase in the UK as a whole. This increase significantly outpaces the 5.1% rise in wages, exacerbating the cost-of-living crisis

Evening Standard (18/09/2024)   Financial Times (18/09/2024)   Reuters (18/09/2024)   The Times (18/09/2024)  

Dr Eliza Filby, a visiting lecturer at King's College London, reflects on the impact of inheritance on property ownership in her upcoming book, Inheritocracy. She shares her personal journey, saying: "I didn't see myself as being incredibly privileged," highlighting the role of parental support in achieving home ownership. Filby notes that 57% of first-time buyers received help from their parents last year, the highest since 2012. The article discusses the generational wealth transfer, with an estimated £5.5tn expected to pass down by 2050, yet warns that this may not solve the housing crisis. According to Dr Filby: "We are all encouraged to believe in being self-made... but that path is lubricated by the parental investor," underscoring the societal shift back toward a world where inheritances dictate life chances. The complexities of family dynamics and the gender pay gap in caregiving roles are also explored. 

The Times (17/09/2024)  

Major lenders are aggressively reducing mortgage rates, with average two-year fixed rates now below 5.5% for the first time since June last year, according to Moneyfacts. The average rate has dropped to 5.49%, while five-year fixed rates have fallen to 5.15%. HSBC, TSB, and Nationwide are among the lenders making significant cuts, with HSBC's cheapest five-year rate now at 3.82%. “We're frequently reviewing our mortgage rates and aim to ensure we offer competitive value to our customers.” said Oli O'Donoghue, head of mortgages at HSBC. The competition is driven by lower City swap rates and a subdued property market, prompting lenders to attract more business. Aaron Strutt from Trinity Financial noted: "This is a pretty decent time to be applying for a mortgage given the scale of rate cuts we are seeing at the moment." Smaller lenders are also joining the trend, further intensifying the competitive landscape.

BBC News (14/09/2024)   Evening Standard (13/09/2024)  

Britain's property market is experiencing significant upheaval as buyers and sellers prepare for the upcoming Budget and the implications of the new Renters' Rights Bill. While prices have risen sharply, with an average increase of 2.4% to £265,375, underlying issues threaten stability. Increased supply, with homes for sale up by over 40% in some areas, is partly due to nervous landlords anticipating potential tax hikes. Rachel Reeves, Chancellor of the Exchequer, may raise capital gains tax rates, prompting many landlords to sell. A recent poll revealed that 31% of landlords plan to reduce their rental properties. Simon Bridgland from Release Freedom warns that it may be too late for landlords to sell before tax changes take effect. Despite these difficulties, first-time buyers are cautiously entering the market again thanks to declining interest rates and reduced stamp duty. As Trevor Kearney from The Private Office notes, high-net-worth buyers are hesitant, waiting to see the Budget's impact before making significant purchases.

Daily Mail (17/09/2024)  

Tower Hamlets is the highest-yielding borough in London for rental returns, according to property analyst SBA Property Management, offering investors yields of 5.9%, compared to the UK capital's average of 4.81%. Average property values in Tower Hamlets stand at £456,375, against monthly rental costs of £2,244. Other areas highlighted in the report are Newham, Barking & Dagenham and Greenwich, offering average rental yields of 5.23%, 5.06% and 4.96% respectively. “The easing of mortgage costs brings more relief to buy-to-let landlords, freeing up resources to make value-boosting renovations and deliver a better tenant experience", said SBA director Tim Darwall-Smith. "Ultimately, the investors with well-managed properties will be best placed to benefit from London’s highly profitable rental market".

Property Wire (11/09/2024)