Docklands News

New research reveals that younger homeowners are more likely than older borrowers to take a risk with their mortgage payments by not locking into a fixed deal. According to the comparison site Uswitch, 42% of borrowers aged 18 to 24 have a fixed-rate mortgage, this compares with 81% of 25 to 34-year-olds on a fixed rate, 80% of 35 to 44-year-olds, 71% of those aged 45 to 54, and 57% of those over 55. Analysis shows about 25% of those aged 18 to 24 are on a standard variable mortgage. A further 18% of this cohort are on tracker mortgages, which usually follow the Bank of England's base rate, and 15% are on discounted mortgages, which is a set percentage below the lender's SVR. Younger homeowners also have the highest average mortgage costs at £1,390 a month, nearly double the £764 paid by those aged over 55. 

The Times (12/11/2022)  

Estate agents say buyers are increasingly interested in the energy efficiency of homes. According to a recent study by NatWest, four in ten buyers now believe that the energy efficiency of a prospective home is a very important factor, up from less than a third a year ago.

Metro (14/11/2022)  

New data from UK Finance show home repossessions rose 15% between July and September this year compared to the previous quarter. Some 700 homeowner mortgaged properties were taken into possession in the third quarter of 2022 while the number of buy-to-let properties taken into possession rose 11% to 390. Inflation and rising borrowing costs are blamed for the rise. UK Finance's figures also showed that 74,440 homeowner mortgages were in arrears of 2.5% or more of the outstanding balance in the third quarter of 2022, 1% fewer than in the previous quarter. Within the total, there were 28,910 homeowner mortgages with more significant arrears, of 10% or more of the outstanding balance. This was broadly unchanged from the previous quarter. Meanwhile, 5,760 buy-to-let mortgages were in arrears of 2.5%, 2% more than in the previous quarter. 

Daily Mail (15/11/2022)   The Independent (15/11/2022)  

Southern Housing Group has agreed a deal to build 236 affordable homes at Fish Island in the London Borough of Tower Hamlets. The project, which will be completed in partnership with O'Shea Group and Galliard Homes, will be delivered over four phases and will complete in Spring 2026. “The surrounding area has already undergone such significant regeneration whilst maintaining its industrious tradition", said Rory O’Connor, managing director of O’Shea Group. "Wickside will be the largest development on Fish Island and most important in its regeneration with a strong focus on place making and community with the delivery of such mixed uses of residential and commercial, over three acres of landscaped gardens and a new pedestrian bridge".

Construction Enquirer (09/11/2022)  

Halifax has revealed that average house prices in the UK slid 0.4% between September and October, the sharpest drop in 20 months, as a surge in borrowing costs hit the property market. Annual house price growth slowed to 8.3% in October, from 9.8% growth recorded in September. Across the UK, the average house price in October was £292,598, which was the lowest figure since May this year, although typical prices remained near record highs. In London, the average price grew 6.8% to £551,320. Kim Kinnaird, director of mortgages at Halifax, said: "While a post-pandemic slowdown was expected, there's no doubt the housing market received a significant shock as a result of the mini-budget which saw a sudden acceleration in mortgage rate increases." Kinnaird believes it likely that house prices will rise to new records over the longer term, particularly given the well-documented shortage of homes for sale. However, she added: "With tax rises and spending cuts expected in the autumn statement, economic headwinds point to a much slower period for house prices."  

Financial Times (07/11/2022)   The Daily Telegraph (07/11/2022)   The Guardian (07/11/2022)   The Independent (07/11/2022)  

Mayor of London Sadiq Khan has urged ministers to reinstate mortgage payment holidays to ease the financial burden on homeowners amid soaring inflation rates. Mr Khan also called for the reintroduction of the Mortgage Rescue Scheme which, prior to 2014, allowed households struggling with mortgage repayments to stay in their homes by selling them to social landlords and continuing to live there as tenants. He said this would be the “right and proportionate approach” to tackling the ongoing crisis which “is only going to become more significant and dangerous”, adding: “Many London homeowners already face sizable monthly mortgage payments, alongside rising costs and stagnant wages. With re-mortgaging rates now hitting levels not seen in more than a decade due to the economic chaos created by this government, it is essential that ministers act to ensure Londoners do not pay the price by losing their homes". 

Evening Standard (07/11/2022)