Docklands News

New figures from The Mortgage Lender (TML) reveal that 19% of tenants are postponing property purchases due to the current housing crisis. The survey shows that 12% of tenants plan to continue renting until house prices fall, while 10% are waiting for mortgage rates to decrease. Furthermore, 9% believe there is no point in looking to buy until rates come down, and 6% are waiting to see the Bank of England's next decision on interest rates on 3 August before making a decision. Despite the challenges, 6% of tenants are still progressing with their home buying plans but are having to make significant compromises. This includes 25% buying away from traditional commuter towns, 32% moving further from city centers, and 16% opting for areas with cheaper living costs to offset expensive mortgages. Additionally, 21% are buying cheaper properties requiring more renovation work, and 12% are considering smaller properties instead. 

Daily Mail (25/07/2023)  

Official figures have highlighted London's gaping wealth divide, with the average price of a semi-detached house in Kensington reaching nearly £11m for the first time last year, 24 times as high as the average cost of a semi in Barking, and in Dagenham and Rainham. According to the Office for National Statistics, in 25 London constituencies, the mean price of an existing semi was above £1m, with the highest in Kensington at £10,893,289 in 2022. In Chelsea and Fulham the figure was £5,366,731, Westminster North £5,133,980, Holborn and St Pancras £3,234,360 and Hampstead and Kilburn £2,882,460. In comparison, the average cost of a semi in Dagenham and Rainham was £446,988, Barking £447,000, Erith and Thamesmead £460,257, East Ham £464,545, Bexleyheath and Crayford £484,695, and Hayes and Harlington £490,214. 

Evening Standard (18/07/2023)  

Figures from the Office for National Statistics show that house prices rose by 1.9% in May compared with the same period last year, down from the 3.2% recorded in April and the weakest rate since July 2020. The average UK home is now worth £286,000, £6,000 higher than a year ago but below the £293,000 peak recorded in September last year. In England, the average house price grew 1.7% to £304,000, while in Wales it rose 1.8% to £213,000. In Scotland, the average price was up 3.2% at £193,000 and Northern Ireland saw the average rise 5% to £172,000. In London the average price grew 0.6%.

The Independent (19/07/2023)   The Times (19/07/2023)  

Rising mortgage rates spark demand for smaller properties Rising mortgage rates and the cost of living crisis have led to a surge in demand for smaller properties, particularly flats. The share of first-time buyers seeking two-bedroom flats has increased to 20%, while the demand for three-bedroom houses has dropped to 40%. Flats have lagged behind houses in terms of price growth due to the search for space during the pandemic and concerns over cladding and leasehold charges. However, experts expect demand for flats to increase as buyers seek better value for money. The rising interest in flats is also driven by downsizers, rising living costs, and the appeal of urban areas. Overseas buyers are also taking advantage of discounts in London's central areas. In some areas, flat values are now increasing faster than house values. 

The Daily Telegraph (17/07/2023)  

A report from the Resolution Foundation think-tank suggests that higher interest rates could see house prices fall by as much a 25% over the next five years, taking the average price from £287,000 today to around £215,000. The report argues that higher interest rates could reduce the house-price-to-earnings ratio from its 2022 peak of 8.9 times a household’s income to 5.6 times. The report also shows that household wealth across Britain has fallen by £2.1trn over the past year. It said that a combination of rising mortgage rates, falling house prices and a collapse in the price of government and corporate bonds has led to total household wealth falling to 650% of national income. Although rising rates are squeezing mortgage holders, falling house prices could benefit young people hoping to get on the ladder in the years ahead, and the deposit barrier for first-time buyers could be reduced. 

Financial Times (18/07/2023)   The Daily Telegraph (18/07/2023)   The Times (18/07/2023)  

Newham Council has rejected plans to expand passenger capacity and flying hours at London City Airport, because of concerns about noise pollution. Plans to expand its capacity from 5m passengers to 9m, while also extending its operating hours beyond existing curfews, were blocked by councillors on Newham's Strategic Development Committee, following warnings that the extra flights would result in “materially new and substantial harm” in the form of noise pollution. Green Party councillor Nate Higgins said the airport was a “blight on residents” and that the expansion would have “exacerbated disruption and affected residents who are already unhappy about noise pollution caused by the airport”.

Property Week (11/07/2023)