Docklands News

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)  

House prices fell last month at the fastest annual pace since 2011, according to the Halifax, with the average UK property price in June down 2.6% year-on-year, or £7,500, to £285,932. The drop was more than double the fall of 1.1% in May, marking the largest such fall for twelve years. Prices have come under most pressure in the south of England, falling by 3% over the past 12 months. Prices in London are also down by 2.6% year-on-year to £533,057, the largest fall in the capital since October 2009. Kim Kinnaird, Halifax's director of mortgages, said: "With very little movement in house prices over recent months, this rate of decline largely reflects the impact of historically high house prices last summer supported by the temporary stamp duty cut."

BBC News (07/07/2023)   Evening Standard (07/07/2023)   The Daily Telegraph (07/07/2023)   The Guardian (07/07/2023)  

An under-resourced planning system is causing delays in home construction and discouraging foreign investment in Britain, according to developers. A survey conducted by CMS, the law firm, found that 90% of builders believe the planning system is slowing down development, while an even greater proportion of the 270 questioned said the delays were the result of a lack of planning officers around the country. Martin Evans, a partner in the CMS planning team, said Britain's planning process was “increasingly raised as an issue when inward investors are looking at the UK”. It comes as data from Barbour ABI, a construction analytics group that feeds figures into the Office for National Statistics, showed that planning applications for infrastructure projects had fallen by 45% between April and June. 

The Times (10/07/2023)  

Experts have warned that if the Bank of England pushes interest rates to 7%, it could have dire consequences for the housing market, causing average prices to plummet. Craig Fish, managing director at mortgage broker Lodestone, believes that a 7% interest rate would tank the mortgage market completely. Tom Pugh, an economist at consultancy RSM, predicts that house prices could fall by more than a fifth if the base rate reaches 7%. Riz Malik, director of mortgage broker R3 Mortgages, warns that further rate hikes could be the final blow for the housing market. The Bank of England is expected to increase the base rate above 6% by the end of the year, heightening fears for the UK economy and household budgets. 

The Independent (11/07/2023)