Docklands News

More first-time buyers are expected to be helped onto the property ladder by building society reforms backed by MPs. The Building Societies Act 1986 (Amendment) Bill has moved closer to becoming law after it received an unopposed third reading in the Commons. The Government-backed Bill aims to modernise societies by expanding their lending capacity, with Labour insisting the changes would support “more working people to become homeowners”. The proposed reforms were moved after a Government consultation considered how to allow building societies to “compete on a more level playing field with banks” and to promote competition within the financial services sector. 

Daily Mail (20/04/2024)   Evening Standard (19/04/2024)   The Independent (20/04/2024)  

Leading lenders including Barclays, HSBC, NatWest, Accord Mortgages, and Leeds building society have increased rates on their fixed mortgage deals in response to market uncertainty. Money market swap rates have slightly risen due to Bank of England interest rate expectations, prompting lenders to reprice some deals. While some lenders such as Accord have increased selected rates by up to 0.4 percentage points, others such as NatWest have opted for smaller rises. It has lifted some of its two and five-year "switcher" deals for existing customers by 0.1 percentage points. Nicholas Mendes, the mortgage technical manager at the broker John Charcol, said lenders had "adjusted their positions in response to market uncertainty," though borrowers "are unlikely to experience the same volatility and high rates as last year". 

The Guardian (23/04/2024)   The Independent (23/04/2024)  

Fairview New Homes has applied to Greenwich Council to build a development featuring 352 homes and 340 student rooms on an old newspaper distribution yard that is currently being used as a worksite for the Silvertown Tunnel. The plot is next to the Studio 338 nightclub and the site of the East Greenwich No 1 gasholder, which disappeared from the skyline in April 2020. Fairview wants to build two towers of 26 and 21 storeys facing Millennium Way, along with a 19-storey student block, a self-storage unit, and a nine-storey block facing a public square. 

Greenwich Wire (16/04/2024)   South London Press & Mercury (15/04/2024)  

Sadiq Khan plans to create a City Hall-owned housing developer if re-elected for a third term. The aim is to bring forward housing schemes on land where private developers and local authorities have struggled. The late Lord Kerslake recommended the creation of such a body in a 2022 review. The first phase would involve expanding and strengthening City Hall's existing housing delivery mechanisms, with the second phase being the creation of the new developer. Khan's deputy for housing, Tom Copley, has been instrumental in bringing the plans to life. The developer would intervene at key housing sites to add value and resolve potential tensions between different stakeholders. Similar plans have been proposed by Khan's Liberal Democrat rival, Rob Blackie. 

Evening Standard (16/04/2024)  

Experts are optimistic about the recovery of the property market, which has been performing better than expected. Factors such as cheaper mortgage rates, a stable economy, and increased public confidence in finances have contributed to this positive trend. House prices fell by 1.8% in 2023, a smaller drop than anticipated, and recent data shows a 1.4% increase in the average UK house price in the first quarter of 2024. Experts believe the market has reached its bottom and expect prices to remain flat or slightly increase by the end of the year. Analysts predict a 5% rise in house prices for the UK this year, citing increasing mortgage approvals, rising wages, and potential mortgage rate reductions. London is expected to experience stronger price growth, with homes selling above asking price for the first time since 2016. Estate agents are more confident about the market, particularly for family houses. 

The Daily Telegraph (16/04/2024)  

Construction output in the UK fell by 1.9% in February, leading to a minimal GDP growth of 0.1%. The fall, which marks a 1% contraction in the three months to February, was driven by a slump in activity in eight out of nine sub sectors – with private housing repair and maintenance the only area of growth, adding 0.2%. Non-housing repair and maintenance, and private commercial new work were the worst affected, contracting by 2.5 and 4%, respectively. Poor weather conditions and high interest rates were cited as the main factors behind the decline. Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said: "Falls in construction activity also indicate a broader malaise the UK is yet to shake off. We've known for some time that major housebuilders have been building fewer homes, as people wait for finances to improve before making large financial decisions".

Daily Mail (13/04/2024)