Docklands News

House prices have risen so sharply that more people are waiting until their 50s to buy their first home. According to Financial Conduct Authority data, there has been a 29% increase in over-50s first-time buyers between 2018 and 2022. The number of 18 to 25-year-olds entering the property market has dropped by 8%, while first-time home purchases among those aged 26 to 30 have decreased by 1%. The trend of older first-time buyers is attributed to factors such as affordability challenges, longer saving periods, and extended mortgage loan terms. London has seen the most significant growth in first-time buyers aged 50 or older, followed by Northern Ireland, the East of England, and the South East. The average detached property now costs £457,222, compared to £268,000 in 2013.

The Mail on Sunday (28/01/2024)  

Mortgage approvals in the UK have reached their highest level in six months, Bank of England data showed on Tuesday. The Bank reported that the number of buyers receiving approval increased from 49,300 in November to 50,500 in December. Remortgaging approvals also rose from 25,700 to 30,800 during the same period. The rise in approvals is attributed to lower borrowing costs and an ongoing mortgage price war. The BoE data also showed the "effective" interest rate - the actual interest paid - on newly drawn mortgages fell six basis points to 5.28% in December, the first drop since November 2021. Thomas Pugh, an economist at RSM, the professional services firm, said falling borrowing costs suggested that "life may be starting to return" to the housing market. However, a fall of £830m in net mortgage lending was also recorded, far below the £250m rise expected by economists polled by Reuters. 

City AM (30/01/2024)   Financial Times (30/01/2024)   Sky News (30/01/2024)   The Times (30/01/2024)  

The number of first time buyers relying on family support has dropped, according to research by Moneybox. In a survey of 1,000 would-be homeowners, the majority (76%) said they plan to buy their first home with their own savings. Just 20% expect to receive financial support from their family to help them raise a deposit and 20% of respondents hope to benefit from inheritance. 

FT Adviser (27/01/2024)  

Newham mayor Rokshana Fiaz is launching a campaign to build affordable housing on the five acres of land previously earmarked for the MSG Sphere in Stratford. She said that MSG withdrawing their application for the Sphere was “fantastic news” for Stratford residents. She added: “We’ll now be campaigning for the site to be designated a housing and employment inclusion zone because we want our residents to benefit from homes they can afford and jobs that will increase household incomes".

Evening Standard (22/01/2024)  

Buyer demand has stabilised, leading to a slight recovery in home sales, according to the Royal Institution of Chartered Surveyors (Rics). The volume of newly agreed sales, although still falling, is at its least negative since March 2022. Professionals predict a solid recovery in home sales volumes in 2024. House prices continue to follow a downward trend, but the negative pressure is diminishing. It also now takes 18 weeks on average to complete a sale, compared with 20 weeks back in September 2023, the report said. Looking ahead, prices are expected to continue edging downwards before stabilising by the end of the year. Tenant demand in the rental sector has risen, leading to rising rental prices. Rics senior economist Tarrant Parsons stated that “nevertheless, the lending climate is set to remain restrictive compared to much of the post-global financial crisis era next year, meaning any uplift in activity is likely to be limited for the time being.” 

Daily Mail (20/01/2024)   Evening Standard (20/01/2024)   The Daily Telegraph (20/01/2024)   The Guardian (20/01/2024)   The Mirror (20/01/2024)  

Borrowers are abandoning mortgage deals they signed up to last year as a new year price war begins. HSBC, NatWest, Lloyds, and Santander have all cut rates, with the average two-year fix dropping from 5.93% to 5.61% and the average five-year fix falling from 5.54% to 5.24%, according to the data firm Moneyfacts. Nicholas Mendes from broker John Charcol noted that the best five-year fixes are now below 4%, which is a significant psychological difference. Borrowers can lock in a rate up to six months before their deal ends, leading to thousands of cancelled applications as rates become cheaper. The Bank of England's 14 base rate increases since December 2021 have caused mortgage rates to reach a 15-year high in August.

Sunday Express (21/01/2024)   The Sunday Times (21/01/2024)