Docklands News

The Sunday Times reports that fixed mortgage rates at less than 4% have disappeared as HSBC, Santander, NatWest, and TSB increased rates. The average two-year fixed-rate is now 5.74%, while the average five-year fix is 5.31%. The lowest five-year fix for those with a 40% deposit is now 4.04% from First Direct and the lowest two-year fix is 4.39% from Barclays. Craig Fish from the broker Lodestone Mortgages said: "Things are changing so swiftly that there are many disappointed borrowers because a slight delay can end up costing thousands of pounds. The ups and downs of the market at the moment are a huge headache for those who are purchasing or have to remortgage." He added: "One reason for the rapidly changing rates is that lenders are trying to manage their workloads." 

The Sunday Times (25/02/2024)  

Less than half (48%) of aspiring first-time buyers expect their homeownership dream to become a reality, according to a survey by the HomeOwners Alliance. The survey found that high house prices, saving for a deposit, and the ability to afford monthly mortgage repayments are among the top barriers for first-time buyers. Seven in 10 (71%) people surveyed who are not homeowners said they want to get onto the property ladder, despite 52% of them believing they will never be able to achieve this. Paula Higgins, chief executive of the HomeOwners Alliance said: “ Brits are giving up on their dream of homeownership, our damning survey reveals.” She added: “With the upcoming election, a key issue will be how the parties plan to build more homes and provide much-needed support to first-time buyers.” 

Daily Express (26/02/2024)   The Independent (26/02/2024)  

Plans have progressed for a series of blocks up to 17 storeys-tall in Greenwich, including nearly 500 co-living rooms and a hotel. Greenwich Council has received JMH Group's proposal for Eynsham Drive in Abbey Road, which includes 487 new co-living rooms and a 110-bedroom hotel. The application also features a gym and roof terraces. Several shared spaces in the buildings are also planned to be available to be used by local businesses and community groups. “The scheme will encourage pedestrian flow within the public realm and improve the pedestrian experience, provide a range of new high quality co-living accommodation, maximise views outwards and create new commercial opportunities at street level that will activate the streetscape", according to the planning documents.

My London (20/02/2024)  

The owner of Olympic Village flats, Get Living, plans to appeal a legal ruling that ordered them to pay for fixing building safety defects. The decision has been welcomed by owners of flats in the East Village development, who have been unable to sell or remortgage their homes due to the dispute. Get Living argues that the Olympic Delivery Authority and the contractors responsible for the work should be liable for the costs. The defects include cladding similar to that on Grenfell Tower, and the case is closely watched by the property industry and the owners of 1.5m flats in the UK who lack proof of safety. 

The Times (17/02/2024)  

House prices in the prime London market have fallen year-on-year and are now back at 2014 levels, according to new data from Lonres. Figures from the property consultancy showed house prices in prime London are now 2.5% below their pre-pandemic level having fallen by 7.1% annually. Activity in the prime London sales market is up, however, the number of properties put on the market in January and the number of properties under offer grew by 4.2% and 5.4% respectively last month. The value of ultra-central properties in South Kensington and Chelsea has dipped, while Mayfair & St James has shown significant growth due to new high-end developments. Rental growth in prime London slowed, too – although average rents are still over a quarter above their pre-pandemic average. 

City AM (19/02/2024)  

Treasury officials have proposed a new scheme that would allow first-time buyers to take out 99% mortgages, with the government guaranteeing the additional risk to lenders. The scheme aims to make it easier for young buyers to get on the housing ladder by requiring only a 1% deposit on their first property. A Treasury source told The Times that Jeremy Hunt, the chancellor, had asked officials to cost the scheme before next month's budget but added that an announcement might not be made until the autumn. The source added that Hunt wanted to prioritise tax cuts at the budget and that 99% mortgages could be part of a larger package to support homeownership to be announced in the autumn. Lucian Cook, head of residential research at the estate agency Savills, said that any scheme that boosted buyer numbers would need to be matched with measures to increase the housing supply. "You might be addressing the deposit affordability issue, but you're still left with the mortgage affordability issue," he said. 

The Daily Telegraph (22/02/2024)   The Times (22/02/2024)