Docklands News

London Mayor Sadiq Khan has initiated a consultation aimed at making housing more affordable for Londoners, proposing that rents be set at 40% of key workers' average household incomes. Currently, key workers spend approximately 74% of their income on rent for a median one-bedroom property, according to Generation Rent. The London Mayor unveiled plans for at least 6,000 new rent–controlled properties, known as Key Worker Living Rent (KWLR) homes, in the city by 2030. Khan said: "I am determined to do everything in my power to make housing more affordable for Londoners." But critics of Khan's proposed policy suggested his record on building affordable homes has been poor. Just over 3,100 affordable housing builds began across Greater London between April 2023 and March of this year, down from 26,386 starts in the previous 12 months, according to the Office for National Statistics.

City AM (26/11/2024)  

Research indicates that London homeowners will incur significant costs when buying and selling properties in 2024, with upfront expenses reaching £30,048. This figure is more than double the national average of £13,978. The situation is set to worsen next April when Stamp Duty thresholds are reinstated, pushing costs to a record £32,549. First time buyers will be particularly affected, facing a 245% increase in moving costs, from £2,551 to £8,801. Rob Houghton, founder and CEO of reallymoving, explained: “Raising over £30,000 to finance a home move is a major challenge for most people.” The report highlights that the average time to save for a first home in London is nearly 8 years and 7 months, which will extend to 9 years and 9 months after the April changes. 

Evening Standard (28/11/2024)  

Recent data from Halifax indicates that buying a home in London has become more affordable, with the proportion of earnings spent on monthly mortgage repayments decreasing from 42.1% in 2023 to 35.7% this year. Matt Thompson, head of sales at Chestertons, noted: "London's property market has recently seen an uplift in activity," as buyers respond to lower interest rates and more attractive mortgage products. However, despite this improvement, the average house price in London remains £539,238, nearly double the UK average of £292,508. First-time buyers are particularly affected, as the upcoming stamp duty changes will limit their options, with only 8% of homes in London valued under £300,000. Analysts at Knight Frank warn against over-reliance on falling interest rates, predicting a slowdown in transaction levels next year.

Evening Standard (29/11/2024)  

The number of affordable homes constructed in London has dramatically decreased by 88% from April 2023 to March 2024, with only 3,100 builds initiated compared to 26,386 in the previous year, according to the Office for National Statistics. Mayor Sadiq Khan's ambitious target of 35,000 new affordable homes under his 2021-26 programme now seems unattainable, as this year's figures represent less than 10% of the promised total. Khan has attributed the slow progress to “Tory town halls” obstructing development and the government's failure to meet housing targets. He said: “I'll not hesitate to act to boost the number of new homes for London families.” The government has pledged over £5bn to address the housing crisis, aiming to build 1.5m homes during this Parliament, while also increasing the Affordable Homes Programme by £500m. A spokesperson from the Ministry for Housing emphasised the need for collective action to resolve the housing crisis. 

City AM (25/11/2024)  

St James, part of the Berkeley Group, has announced the launch of The Horizon Collection at Bow Green, in the Golden Triangle between Canary Wharf, the City, and Stratford. Over 50% of the 1,450-home development will be dedicated to green open spaces with landscaped residents' gardens, plus over five acres of public park. The Horizon Collection occupies the thirteenth to sixteenth floors of Bow View, and includes a mix of suites, one-, two-, and three-bedroom apartments. Each home features contemporary-styled kitchens with Bosch appliances, and elegant bathrooms with wall tiling to key areas. Each apartment includes its own private balcony for residents to enjoy the pandemic views. Facilities include a gym with boxing ring, an indoor pool and outdoor serenity pool, an IMAX cinema and lounges, and a 24-hour concierge. Properties in the Collection are priced from £480,000.

London Daily News (20/11/2024)  

The Adam Smith Institute (ASI) has called on the government to use local development orders to expedite housebuilding and tackle the housing crisis. Henry Hill, the report's author, emphasised that these orders could facilitate the rapid creation of new homes, particularly in the grey belt areas. He argued: “Our systematic failure to build enough houses in this country has been a national disaster.” The report highlights the challenges posed by the current planning system, which has hindered local councils from meeting housing demands. Maxwell Marlow, ASI's research director, argued that the nationalisation of the planning system has been detrimental, suggesting that development orders could help “cut through red tape” and enable quicker construction of necessary homes and infrastructure. 

City AM (15/11/2024)