Docklands News

Confidence in Britain's construction sector has risen slightly, thanks to expectations of interest rate cuts. The Royal Institution of Chartered Surveyors (RICS) reported a more positive outlook for the year ahead, with its headline workloads measure increasing from 6% to 12%. While activity in the sector declined in the three months to December, the decline was less severe than in the previous three months. RICS noted a "clear divergence" between home-building, which contracted further, and infrastructure activity, which continued to grow. Despite lower mortgage rates, the housing market has been slow to recover from previous interest rate increases, RICS said. Although pressures around skills shortages persisted in the fourth quarter, RICS said survey respondents were anticipating a rise in employment in the next 12 months. 

Daily Mail (03/02/2023)  

More young people believe they will use property to fund their old age rather than pensions, even though few have reached the stage of having a mortgage yet, research reveals. Standard Life's survey found that young adults intending to use their homes as a source of retirement income may not have realistic expectations given the nature of the housing and mortgage market today. However, Standard Life points out that many people are still likely to be paying rent or mortgages in later life. The survey also found that just one in ten people aged 27 or under currently have a mortgage, and one in five believe they will still be paying off a mortgage in retirement. "Relying on one asset alone for your retirement can be risky," says Standard Life's managing director for retail direct Dean Butler. 

Daily Mail (05/02/2023)  

One in 10 Londoners report negative impact on mental health due to rent and mortgage anxiety, according to an annual survey by the Office for National Statistics (ONS). The survey revealed that 43% of Londoners experienced an increase in rent or mortgage costs in the past six months, the highest among all regions. Overall, 6% of adults in Britain cited housing affordability as a factor affecting their mental health, rising to 10% in London. 

Evening Standard (02/02/2023)  

Mayor Sadiq Khan has given the green light for the next phase of EcoWorld London and Poplar HARCA's 1,500-home Aberfeldy Village redevelopment scheme. Of the 1,500 new homes, 39% will be allocated for affordable housing, with 89% of those for social rent. Nearly half (46%) of the homes will be family-sized with three or more bedrooms. Plans also feature new community amenities, a revitalised high street, new green spaces and play areas, and improvements to local parks. Construction costs and dates for the latest phase are yet to be disclosed.

Property Week (29/01/2024)  

Thousands of homes under construction have been left abandoned at stalled "ghost housing developments" across London due to the sudden downturn in the property market. Construction work at 61 house-building sites with at least 20 homes to be completed had been halted, leaving over 6,000 half-built homes. This number of schemes on hold is unprecedented, with only 10 schemes put on hold during the financial crisis in 2008 and 2009. Developers blame a "perfect storm" of setbacks, including interest rate spikes, contractor collapses, soaring costs, and new safety regulations. The figures reveal devastating falls in starts, completions, and sales in the London private housebuilding sector in 2023. 

Evening Standard (30/01/2024)  

House prices rose at their strongest pace in a year, according to Nationwide. The average home is now worth £257,656, with prices increasing by 0.7% between December and January. This marks a turnaround from the 1.8% fall recorded in 2023. Robert Gardner, Nationwide's chief economist, attributed the increase to cuts in mortgage rates and positive forecasts about interest rates. However, he noted that the outlook remains uncertain. The housing market has been lacklustre recently, but prices have stabilised in many areas. Nationwide also highlighted the challenges faced by first-time buyers, with the typical deposit equating to 105% of their average annual gross income. Gardner said: “There remains considerable variation in affordability across the country, with pressures particularly acute in London, the south of England and East Anglia. Scotland and the north continue to be the most affordable regions, with mortgage payments as a share of take-home pay much closer to their long run average".

Daily Mail (31/01/2024)   Financial Times (31/01/2024)   The Daily Telegraph (31/01/2024)   The Times (31/01/2024)