Docklands News

London hit by record downturn in affordable housing

London is experiencing a significant decline in affordable housing supply, with starts dropping 88% in the year to March, the lowest since records began in 2015. 

Financial Times (28/12/2024)  

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PwC predicts house price surge

PwC's predictions for 2025 indicate a significant rise in house prices, with the average price expected to surpass £250,000 in half of the UK. The firm forecasts a national increase of 3% to 4%, making home ownership increasingly challenging for first-time buyers. In London, average prices may reach £535,000, while the South East could see £380,000. Barret Kupelian, chief economist at PwC, commented: “This year, our predictions show that the UK will undergo subtle yet significant transformation in both its internal and external environment.” Labour has promised to build 1.5m new houses in order to help address the issue. However, by highlighting a persistent lack, PwC has raised questions about whether there are enough builders to support the ambitious aim. 

The Mirror (28/12/2024)  

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Ballymore submits applications for over 3,500 Royal Docks homes

Ballymore has submitted a pair of hybrid applications for riverside sites in east London to Newham Council. Proposals for the Thames Road and Knights Road schemes near the Royal Docks have been lodged for the second time, with Ballymore making revisions following the adoption of the second staircases rule for residential high-rise buildings. At Thames Road, close to the Thames Barrier Park and Pontoon Dock DLR, includes 1,658 new Howells-designed homes with 281 earmarked as affordable. Meanwhile, a total of 1,667 new homes, designed by Allies & Morrison, have been proposed for Knights Road, a short stroll away from West Silvertown DLR, 334 of which have designated as affordable. Both sites flank Ballymore's Royal Wharf development. “Royal Wharf has become a blueprint for successful brownfield development – completed back in 2020 yet to this day delegations from around the world visit to study the project", commented Ballymore managing director John Mulryan. “We look forward to a determination on the Knights Road and Thames Road proposals and hope to start construction next year".

Architects' Journal (17/12/2024)   Construction Enquirer (17/12/2024)   Property Week (16/12/2024)  

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House prices rise 4.8% in December

The UK housing market has experienced an unexpected surge, with average house prices reaching a record £298,083 in December, marking a 4.8% increase from £284,442 the previous year, according to Halifax. The growth has been attributed to a decline in mortgage rates, alongside wage growth outpacing inflation. However, Halifax warns that this trend may not continue into 2025, as the decline in interest rates is expected to be gradual. Amanda Bryden, head of Halifax Mortgages, said: "2024 was a year when UK property prices once again defied expectations." The report also highlighted that first-time buyers saw a 4.1% increase in property prices, while the highest annual inflation was recorded in Northern Ireland at 6.8%. The slowest annual growth was in Scotland at 2.8%. Halifax expects modest house price growth next year in the range of 0-3%, along with a further small increase in the number of transactions. 

Daily Mail (18/12/2024)   The Independent (18/12/2024)   The Times (18/12/2024)  

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Nationwide predicts property price surge

According to a forecast by Nationwide Building Society, homeowners could see their property values increase by over £10,000 on average in 2025. The predicted growth ranges from 2% to 4%, translating to an increase of £5,363 to £10,725 for the average property currently valued at £268,144. Robert Gardner, chief economist at Nationwide, said: "Upcoming changes to stamp duty are likely to generate volatility, as buyers bring forward their purchases to avoid the additional tax." The forecast follows a significant monthly rise in house prices, with a 3.7% increase over the past year, marking the largest annual rise in two years. Gardner anticipates a strong start to 2025 as buyers rush to beat the stamp duty deadline, which will see thresholds drop from £250,000 to £125,000. 

Daily Mail (17/12/2024)   The I (17/12/2024)  

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Construction worker shortage causes concerns

The UK construction industry is facing a significant shortage of workers, with industry leaders warning that the country lacks the necessary manpower to meet the Government's target of building 1.5m homes by 2029. The Home Builders Federation (HBF) and Barratt Redrow highlighted that tens of thousands of new recruits are needed across various trades, including 20,000 bricklayers and 8,000 carpenters. David Thomas, chief executive of Barratt Redrow, stated: "The short answer is no" when asked if there are enough workers to meet the demand. Factors contributing to the crisis include an ageing workforce, skills shortages, and the impact of Brexit, which has reduced the availability of skilled workers from the EU. Despite the Government's recent announcement of £140m funding for apprenticeships, local councils have deemed the housing targets "unrealistic." The HBF emphasised the need for a more pro-development policy to increase housing supply. 

BBC News (14/12/2024)  

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