Docklands News

The proportion of cash buyers in the property market is increasing, with 31% of all property sales in England and Wales in the first three months of the year being paid for without a mortgage. This is up from 29% in the same period last year and 27% in 2020, according to Land Registry data. Rising interest rates have put many people's plans to buy a new house on hold, leading to a decrease in the number of people buying a home with a mortgage. Cash buyers have the advantage of less competition and can negotiate better deals. Sellers are more willing to accept lower offers from cash buyers due to the reduced risk of the sale falling through. However, there are signs that this advantage may start to level out as inflation eases and mortgage rates decrease. 

The Times (15/08/2023)  

The average UK house price fell by 0.3% in July, the fourth month in a row, according to the Halifax house price index. Halifax said a typical UK home cost £285,044, compared with a peak of £293,992 last August. Property prices were down 2.4% last month compared with the same period last year, easing from a 2.6% decline in June. Analysis shows the biggest decline was again in the south-east, where the average price was down 3.9% in July, meaning just over £15,500 has come off the value of a typical property in the region over the last year. Kim Kinnaird, the mortgages director of Halifax, said: "In particular, we're seeing activity among first-time buyers hold up relatively well, with indications some are now searching for smaller homes, to offset higher borrowing costs". Mr Kinnaird said the wider housing market remained closely linked to the performance of the economy, adding: "Several factors are providing support, notably strong wage growth, running at around 7% annually".

Daily Mail (07/08/2023)   Financial Times (07/08/2023)   The Daily Telegraph (07/08/2023)   The Times (07/08/2023)  

Analysis of thousands of removal quotes suggests that August has been the most popular month to move home for the past 11 years. Research carried by property advice website the HomeOwners Alliance indicated that Friday August 25 could be the most popular day to move in 2023, enabling people to settle into their new home over the bank holiday weekend. Research found three in 10 (30%) households move on a Friday, and the last Friday in August tends to be the busiest day of the year to move.

Evening Standard (07/08/2023)   The Independent (07/08/2023)  

A survey of agents and surveyors suggests that high mortgage rates have hit property sales, with a net 44% saying they saw a decline in sales agreed in July. The Royal Institution of Chartered Surveyors poll saw a net 45% of estate agents and surveyors say inquiries from new buyers fell last month, with the report declaring this a “sharp downturn in buyer demand.” Even in 12 months' time, a net 25% of estate agents believe their deal pipelines will be smaller than they are now. Simon Rubinsohn, the institution’s chief economist, said: “The continued weak reading for the new-buyer inquiries metric is indicative of the challenges facing prospective purchasers against a backdrop of economic uncertainty, rising interest rates and a tougher credit environment.” The poll found that near-term sales expectations “have turned increasingly subdued of late”, while a net 53% of respondents reported a drop in prices last month.

Financial Times (09/08/2023)   The Times (09/08/2023)  

Analysis by the Resolution Foundation shows that renters spent 34% of their incomes on housing costs in 2021-22, compared to 9% for mortgage holders. Cara Pacitti, senior economist at the think tank, said private renting remained the most expensive type of housing despite rises in costs for homeowners. Labour said the figures showed renters were being hit by a "double whammy" of rising rental costs and the ever-increasing cost of buying a house, making home ownership an increasingly distant prospect. 

The Independent (07/08/2023)  

Cain International, the privately held investment firm, and affiliates of Starwood Capital Group, the global private investment firm, have agreed a £535m loan to Docklands developer Canary Wharf for the next phase of development at its Wood Wharf residential scheme. Cain and Starwood Capital will each provide half of the £535m development loan, one of the largest in the UK in the past 12 months. Part of the wider Canary Wharf estate, Wood Wharf Phase Three is a 1,308-home private build-to-rent scheme, split across three towers and two buildings, alongside 26,300 square feet of commercial. The phase includes 295 affordable homes.

CoStar (28/07/2023)