Docklands News

Recent findings from a YouGov poll commissioned by the Building Societies Association (BSA) reveal a significant decline in confidence among potential homebuyers. Only 17% of respondents believe now is a good time to buy, a drop from 20% three months ago. The increase in stamp duty, which now affects more buyers, has been cited as a major barrier, with 30% of participants identifying it as a key obstacle. Paul Broadhead, head of mortgage and housing policy at the BSA, said: "It's not surprising that sentiment in the housing market has declined overall," as he highlighted the challenges faced by first-time buyers. Despite recent reductions in mortgage rates, affordability remains a pressing issue, with 61% of respondents indicating that high mortgage payments are a significant barrier to homeownership. Broadhead emphasised the need for "radical changes" to improve long-term affordability in the housing market. 

Daily Mail (22/04/2025)  

Mortgage rates have risen since October despite the Bank of England cutting the base rate twice, according to analysis by the finance comparison site Finder. Since October 2024, the base rate has been cut twice, falling from 5% to 4.5%. The average rate on a two-year fixed mortgage with a 25% deposit increased from 4.41% in October to 4.54% in March, hitting a peak of 4.66% in February. The average five-year fixed rate mortgage on the same terms has increased from 4.06% to 4.32%. Kate Steere, savings and mortgages expert at Finder, said: "Homeowners could reasonably expect lower mortgage rates to follow base rate cuts, but instead, they’ve faced rising costs in recent months." The data also shows that while rates for home loans have risen, savers have seen average rates cut at 2.4 times the pace of the base rate. 

The Mail on Sunday (20/04/2025)  

The Government is set to implement artificial intelligence in council planning departments to digitise old paper files and handwritten notes, aiming to streamline the planning process for housebuilders. With the potential to convert plans in just 40 seconds, compared to one to two hours for humans, the technology could significantly enhance efficiency. Peter Kyle, the technology secretary, said: "Technology like this could be a vital step towards councils meeting targets to help build the 1.5m new homes the country needs." The AI program Extract has shown promise in transforming blurry maps and notes into clear data, reducing errors in planning archives. Trials are ongoing, with local authorities expected to access the technology this year. 

The Times (19/04/2025)  

The value of Canary Wharf’s office blocks fell by £180m last year, with analysis showing that the office estate owned by Canary Wharf Group (CWG) saw its value fall by 4.1% to £4.2bn in 2024. This decline was not as steep as that recorded a year earlier, when the value fell by £954m. CWG, which is owned by Canadian property investment firm Brookfield and Qatar’s sovereign wealth fund, said its portfolio of retail properties increased by 0.9% to £1.2bn but residential property values dropped 7.2% to £208m. Overall, the value of the entire estate fell by 1.2% to £6.8bn in 2024. 

Daily Mail (17/04/2025)   Financial Times (17/04/2025)   The Daily Telegraph (17/04/2025)  

According to a new report by the Institute for Fiscal Studies (IFS) and the Economic Statistics Centre of Excellence (ESCoE), Londoners have the highest income per head in the UK, yet their spending is significantly constrained by high housing costs. The report reveals that while Londoners earn approximately 39% more than the national average, their household consumption ranks near the bottom nationally after housing expenses are considered. Gautam Vyas, co-author of the research, said: "Our findings challenge the conventional wisdom that the typical London household enjoys higher living standards than their counterparts across the country". The report highlights that, despite high incomes, many Londoners struggle to translate earnings into consumption due to exorbitant housing prices, which average around £550,000 compared to £300,000 elsewhere in the UK. 

City AM (11/04/2025)  

UK house prices grew 5.4% in the year to February, reaching an average of £268,000, according to the Office for National Statistics. The North West saw the highest increase at 8%, while London experienced a modest rise of 1.7% to £555,625. Changes to stamp duty eligibility, which lowered the threshold for first-time buyers from £425,000 to £300,000, prompted many buyers to bring forward purchases to avoid being stung by the tax. Elliott Jordan-Doak, senior UK economist for Pantheon Macroeconomics, explained: "Official house prices will be boosted for at least another two months by the flurry of activity ahead of the stamp duty changes". Meanwhile, private rents across the UK rose by 7.7% to £1,332 a month in the year to March, with London rents increasing by 9.1% to £2,243. 

City AM (16/04/2025)   Daily Mail (16/04/2025)   The Daily Telegraph (16/04/2025)   The Standard (16/04/2025)