Docklands News

The number of new homes being built in London has fallen to its lowest level since 2009, with only 1,210 new starts recorded in the first quarter of 2024. Industry leaders cite post-Grenfell cladding and fire safety regulations, overseen by the under-resourced Building Safety Regulator (BSR), for causing major delays for housebuilders. London is now on track to deliver just 5.5% of the government's 2025 housing target. Without urgent reform to the regulator's processes, construction of high-rise buildings critical to the capital’s growth could grind to a halt. One industry source said: "We are now firmly into existential crisis territory on building safety regulator performance and impact on the housing sector". A BSR spokeswoman commented: "BSR has had to reject around 70% of applications as they don’t contain the information that’s required by law and/or they don’t demonstrate compliance with building regulations".

The Sunday Times (27/04/2025)  

Despite earning 40% more than the UK average, Londoners are finding themselves with less disposable income due to soaring housing costs. A recent report by the Institute for Fiscal Studies and the Economic Statistics Centre of Excellence highlights that, after paying an average rent or mortgage of £2,100, Londoners are left with limited funds for other expenses. Many young professionals report living hand-to-mouth, while those with disposable income are choosing to save rather than spend, impacting local businesses reliant on consumer spending. While the allure of London remains, the financial strain is prompting many to reconsider their living situation.

The Daily Telegraph (26/04/2025)  

In March, property sales surged by 50% compared to February, driven by buyers eager to avoid increased stamp duty costs, according to Barclays Property Insights. First-time buyers saw a 70% rise in completions, marking the highest volume since September 2021. The stamp duty threshold for first-time buyers decreased from £425,000 to £300,000, while for other buyers, it was halved to £125,000. Additionally, the average cost of buying a home has risen, with buyers needing an extra £13,530 to cover associated expenses. Jatin Patel, head of mortgages at Barclays, stated: "We experienced a blockbuster month for completions in March, as buyers raced to get ahead of the stamp duty deadline." Overall, housing costs now consume up to 28% of household income, increasing to 36% for renters.

City AM (22/04/2025)   The I (22/04/2025)  

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)