Docklands News

More young people believe they will use property to fund their old age rather than pensions, even though few have reached the stage of having a mortgage yet, research reveals. Standard Life's survey found that young adults intending to use their homes as a source of retirement income may not have realistic expectations given the nature of the housing and mortgage market today. However, Standard Life points out that many people are still likely to be paying rent or mortgages in later life. The survey also found that just one in ten people aged 27 or under currently have a mortgage, and one in five believe they will still be paying off a mortgage in retirement. "Relying on one asset alone for your retirement can be risky," says Standard Life's managing director for retail direct Dean Butler. 

Daily Mail (05/02/2023)  

One in 10 Londoners report negative impact on mental health due to rent and mortgage anxiety, according to an annual survey by the Office for National Statistics (ONS). The survey revealed that 43% of Londoners experienced an increase in rent or mortgage costs in the past six months, the highest among all regions. Overall, 6% of adults in Britain cited housing affordability as a factor affecting their mental health, rising to 10% in London. 

Evening Standard (02/02/2023)  

Mayor Sadiq Khan has given the green light for the next phase of EcoWorld London and Poplar HARCA's 1,500-home Aberfeldy Village redevelopment scheme. Of the 1,500 new homes, 39% will be allocated for affordable housing, with 89% of those for social rent. Nearly half (46%) of the homes will be family-sized with three or more bedrooms. Plans also feature new community amenities, a revitalised high street, new green spaces and play areas, and improvements to local parks. Construction costs and dates for the latest phase are yet to be disclosed.

Property Week (29/01/2024)  

Thousands of homes under construction have been left abandoned at stalled "ghost housing developments" across London due to the sudden downturn in the property market. Construction work at 61 house-building sites with at least 20 homes to be completed had been halted, leaving over 6,000 half-built homes. This number of schemes on hold is unprecedented, with only 10 schemes put on hold during the financial crisis in 2008 and 2009. Developers blame a "perfect storm" of setbacks, including interest rate spikes, contractor collapses, soaring costs, and new safety regulations. The figures reveal devastating falls in starts, completions, and sales in the London private housebuilding sector in 2023. 

Evening Standard (30/01/2024)  

House prices rose at their strongest pace in a year, according to Nationwide. The average home is now worth £257,656, with prices increasing by 0.7% between December and January. This marks a turnaround from the 1.8% fall recorded in 2023. Robert Gardner, Nationwide's chief economist, attributed the increase to cuts in mortgage rates and positive forecasts about interest rates. However, he noted that the outlook remains uncertain. The housing market has been lacklustre recently, but prices have stabilised in many areas. Nationwide also highlighted the challenges faced by first-time buyers, with the typical deposit equating to 105% of their average annual gross income. Gardner said: “There remains considerable variation in affordability across the country, with pressures particularly acute in London, the south of England and East Anglia. Scotland and the north continue to be the most affordable regions, with mortgage payments as a share of take-home pay much closer to their long run average".

Daily Mail (31/01/2024)   Financial Times (31/01/2024)   The Daily Telegraph (31/01/2024)   The Times (31/01/2024)  

House prices have risen so sharply that more people are waiting until their 50s to buy their first home. According to Financial Conduct Authority data, there has been a 29% increase in over-50s first-time buyers between 2018 and 2022. The number of 18 to 25-year-olds entering the property market has dropped by 8%, while first-time home purchases among those aged 26 to 30 have decreased by 1%. The trend of older first-time buyers is attributed to factors such as affordability challenges, longer saving periods, and extended mortgage loan terms. London has seen the most significant growth in first-time buyers aged 50 or older, followed by Northern Ireland, the East of England, and the South East. The average detached property now costs £457,222, compared to £268,000 in 2013.

The Mail on Sunday (28/01/2024)