Docklands News

In The Telegraph, Melissa Lawford looks at how the post-pandemic return of workers to London is set to result in a property shortfall in the capital. The Greater London Authority forecasts the population to rise by 700,000 by 2031 and JLL predicts the capital needs another 300,000 rental properties in the next eight years. Overall, by 2031, JLL estimates London will have a shortfall of 110,500 rental homes. Emma Rosser, of JLL, warned: "In reality, this could be far higher, given the headwinds to home ownership and the challenges for small landlords limiting supply levels." 

The Daily Telegraph (06/03/2023)  

New figures show that 17% of all new mortgages taken out in December were for terms of 35 years or more, almost double last February's rate, when it was just 9% of home loans. Overall, around 55% of mortgage loans are now taken out for terms of 30 years or more, compared with just 9% in 2005. According to Halifax, the average age of a first-time buyer is now 32 and even older in London, meaning that many borrowers are now on course to still be paying off their home loans in their sixties or even seventies. A spokesman for UK Finance described stretching out mortgage terms as a relatively low-risk option for borrowers to increase their borrowing potential. He added: "It does, however, limit the ability of borrowers to save or invest in other areas - for example their pensions - for a longer period while they are still paying off their mortgage." 

The Sunday Telegraph (05/03/2023)  

A report by the London School of Economics and Political Science says that nearly 200,000 mortgage "prisoners" trapped on interest rates of up to 8.29% should be offered interest-free loans to set them free. The report calculated that the Government made £2.4bn profit from selling the mortgages on to lenders that are not regulated to offer borrowers new deals. Its report now proposes a package of support for struggling borrowers that would cost Whitehall up to £347m over ten years. These proposals include providing equity loans that would be interest-free for five years, to help borrowers reduce the size of their mortgage debt and qualify for a cheaper rate with a new lender. MoneySavingExpert founder Martin Lewis, who funded the research, called on ministers to act "with speed". 

The Sunday Express (05/02/2023)  

British Land is making its first foray in the residential market, with the launch of 186 "net-zero" apartments at its new regeneration project at Canada Water. A mix of studio, one-, two-, and three-bedroom homes, The Founding will also see the creation of 12 acres of new open space, including a 3.5-acre park, a new town square, and the first new high street in London for 100 years. British Land said that the project will be a net-zero neighbourhood by 2030, using an “all-electric energy strategy” which uses 100% renewable electricity. Phase one of the scheme is  expected to be completed in the third quarter of 2024, with prices for homes starting at £696,000. The centrepiece of the new district will be the building currently known as the Printworks. The distinctive, boxy structure, formerly known as Harmsworth Quays, was once owned by the Daily Mail and housed the newspaper’s printing press, before its more recent rejuvenation into a 5,000 capacity night club and event space. It is to be transformed again into a cultural venue, where drama and dance performances can be held, while the other part will be turned into an office, intended to become a company headquarters.

City AM (27/02/2023)   The Guardian (01/03/2023)  

A new report reveals that over the next 15 years London will become a global “megacity” with a population of 10m people. Economics forecaster Oxford Economics said London's economy will thrive, 600,000 high quality new jobs will be created, and its wobbling housing market will also recover — to the extent that an average owner will soon need to borrow 12 times their annual salary to buy a home (compared to a UK average of eight). The report said this prosperity will boost the housing market with price growth returning in 2025 after a two year hiatus. 

Evening Standard (28/02/2023)  

House prices are at their least affordable level in nearly 150 years, according to analysis from Leeds Building Society. The figures showed average home values last year were 9.2 times higher than average earnings. That multiple was last larger, at 9.3 times, in 1875, the year when the Leeds was founded, according to the analysis of data from the Office of National Statistics, the Bank of England and Land Registry. Back then average annual earnings totalled just £40, making it a struggle to afford a typical home - worth £372. Today a typical salary has surged to £31,928 but a residential property is valued at an average £294,329. A separate report from the asset manager Schroders also came to the same conclusion, and also found a gender gap. The average house in London costs more than 14 times a woman's salary, compared with 12 times for a man. Outside of London, the gender divide was most stark in the South East.

The Mail on Sunday (26/02/2023)   The Sunday Telegraph (26/02/2023)