Docklands News

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)  

House prices fell at the fastest annual rate for 14 years in July, according to data from Nationwide. The 3.8% year-on-year decline was the steepest since July 2009. The fall took the average UK house price to £260,828, with this around £13,000 – or 4.5% - below a peak recorded in August 2022. Month-on-month, prices were down 0.2% in July. Noting that housing affordability “remains stretched” for those hoping to buy a home with a mortgage, Robert Gardner, Nationwide’s chief economist, said a “challenging affordability picture helps to explain why housing market activity has been subdued in recent months.” Separate data from HMRC shows that house sales fell by 15% in June compared with the same month a year earlier. An estimated 85,870 transactions took place in June 2023 across the UK, which was 6% higher than in May this year. The report said that part of the month-on-month increase can be explained by a higher number of working days in June than in May.

BBC News (01/08/2023)   Evening Standard (01/08/2023)   The Daily Telegraph (01/08/2023)   The Guardian (01/08/2023)  

Industry data suggests that the housebuilding market has slowed in recent weeks, with rising mortgage costs having an impact on the purchase of new homes. Department for Levelling Up, Housing and Communities figures show that the number of energy performance certificates (EPC) issued to newly-built houses — a key forward indicator of housebuilding completions — fell by 13.5% year-on-year in Q2. The fall to 58,000 new homes was the steepest dip in a decade, excluding a 60% drop seen at the start of the pandemic. As well as pressure from mortgage costs, the construction industry has warned that tougher environmental regulations will see firms cutting back on new homes. 

The Sunday Times (30/07/2023)  

Almost 90,000 homeowners took out a mortgage with a term of 35 years or more last year, according to Financial Conduct Authority data analysed by wealth manager Quilter. The report shows that 88,000 borrowers took out a mortgage with a term of 35 years or more in 2022, up from about 69,600 the year before and 36,000 in 2020. More than 3,100 of the longer mortgages taken out last year had terms of 40 years or more. Last year more than 12,000 borrowers over the age of 41 took out a mortgage with a term of 30 to 35 years, meaning they could still be paying off their loan in retirement. Ben Tadd from broker Lucra Mortgages commented: "A longer mortgage term has become a basic necessity for many borrowers trying to ensure their monthly payments remain affordable.” 

The Times (29/07/2023)  

Get Living has been granted planning permission for more than 1,000 homes in east London’s former Olympic Village.  The three new blocks, unanimously approved by the London Legacy Development Corporation, complete the original masterplan for the East Village neighbourhood in Stratford. Originally built to house athletes for the 2012 London Olympics, East Village has now grown to a community of 6,500 people with 25 acres of public realm.  The final elements of the development, which have been designed by Howells and TP Bennett, range in height from eight to 40 storeys.   The N18 and N19 buildings will provide a total of 848 new rental homes, while N16 provides 504 students homes, 35% of which will be “affordable”, along with a new space for independent retailers. 

Development Finance Today (26/07/2023)   Housing Today (26/07/2023)