*Slightly mind-boggling* scoop: new building is getting blocked in west London because the electricity grid is at capacity. There may not be a fix for A DECADE or more. 🤯
w/
@sjhmorris
My final piece as property correspondent looks at how London became an 'inheritocracy', and how damaging that could be for the city.
The data and interviews paint a picture of a city that has become inhospitable for many young people. (1/5)
TIL Americans have a *very* different understanding of Gooner than Brits.
Wish I’d known that before putting
#Gooner
in my Twitter bio and moving to SF.
1 millon people remortgage their homes each year. Their monthly costs are about to leap, making the risks of a serious property price crash much more likely. (1/3)
Delighted (despite appearances) to win property business journo of the year at the
#PropertyPressAwards
last night. Thank you to patient editors, chatty contacts and helpful PRs 🙏🙏
Some bittersweet personal news: I'm leaving the property beat and heading to San Francisco to cover venture capital for the FT next month.
Gutted to depart but can't wait to join
@Tabby_Kinder
@RichardWaters
and co. covering one of the most exciting stories around.
On a day of big vaccine and schools news, pretty significant that the Mail went with cladding on the front. This story is only going to get bigger this year.
Today's launch in full: homeowners paying more than £2bn pa in stop-gap safety measures and insurance hikes due to failures to fix unsafe homes = losing £6m each day work is delayed. That is *before* they're handed 6-figure bills to pay for repairs
A massively important story, which
@ncbrooker
and I have tried to unpick: how did 2m people end up trapped in their homes and what can be done about it?🙏to those who told us their heartbreaking stories and to others covering this brilliantly elsewhere.
💥Scoop: London's most expenisve mansion (£210mn!!) is owned by Evergrande chairman - once China's richest man, now staving off a crisis at his heavily indebted company.
@primroseriordan
@cynthiao
and I dug into a secretive property deal. 👇 (1/5)
Today I start a new job leading the
@FT
's property coverage, taking over from the excellent
@JudithREvans
. Just as well I have a few quiet weeks to settle in... 😬
Excellent dissection of the Grenfell inquiry and the corporate scandal which is emerging from it by
@PeteApps
, whose reporting on this has been phenomenal.
Last week ministers touted their big solution to the cladding crisis. But the fanfare looks premature: there is still major confusion around which homes are safe and lenders are nervy about issuing mortgages.
Meanwhile, leaseholders remain trapped.
"SVB’s bank run was largely unnecessary and it was stoked by venture capitalists freaking out... They killed their relationship bank"
The blame game is well underway in Silicon Valley.
w/
@AntoineGara
and
@tim
Robert Jenrick claimed that his intervention on cladding last week would free up the housing market. But by hobbling leaseholders with long-term loans it may just create other problems, not least negative equity... 👊
@MelissaLawford
Cladding repair costs will have "a devastating impact" on new affordable housing.
Yet another grim consequence of the building safety crisis exposed by Grenfell.
"The government’s announcement is doing no more than commanding pigs to fly, or frantically trying to stuff toothpaste back into the tube. Until that changes... leaseholders will continue to suffer."
@LiamSpender
is the top comment on our cladding story
It's been a year since I rocked up here knowing no one and nothing. Thank you to my wonderful colleagues, friends and contacts for making it feel like home.
This is blocking new homes and commercial projects in Hounslow, Hillingdon and Ealing - 3 boroughs responsible for ~10% of all new London homes.
The issue is worsening thanks to electricity-hungry data centres and demands that new homes come with EV chargers/heat pumps etc.
The stamp duty holiday handed a £3.1bn saving to buyers of homes worth £500,000 or more.
The handout is equal to what the government has put aside to fix unsafe cladding.
It's hard to argue that greasing the wheels of the housing market is the bigger priority of the two.
Was the stamp duty holiday a success?
It saved buyers £6.4bn, but about half of that went to people paying £500,000+ for a home. Possibly cost the Treasury £bns and market would've been hot without it. Exclusive w/
@MrJamesPickford
, 🙏 to
@LucianCook
Sunak's eco-credentials on show as he recycles a number of housing announcements. The big numbers - £11.5bn affordable homes programme, £5bn cladding fund - are old. The middling one - £1.8bn for brownfield sites - widely briefed.
San Francisco is a beautiful, wonderful city. But the extent of its challenges - drugs, homelessness, a hollow downtown - threaten its future and raise fears the city is stuck in a "doom loop."
@Tabby_Kinder
and I spent weeks asking: can SF escape?
I'm writing my last piece for
@ftproperty
🥲and would love to talk to:
- parents helping their child buy a first home in London
- first time buyers wondering if they can afford it/whether its worth it
Drop me a line (anonymously is fine) if that's you: george.hammond
@ft
.com
“There are going to be tonnes of stranded assets, let’s be honest.”
Here's a piece I've been working on for 9 months, looking at how much of the ofice market could be wiped out by environmental regulation and who'll get burnt on the way.
Boris met the UK's top bankers on Tuesday to talk cladding. On the agenda:
- restarting lending to affected flats
- loans for leaseholders
The meeting, a day after the
#BuildingSafetyBill
was published, shows just how much is left to fix. w/
@sjhmorris
?
The result is that high-earning, hard-saving young people like Michael Seal will move away:
"I don’t really know what society wants from me if not to be a hard-working teacher in a deprived school. But I’m still eating hummus sandwiches in a leaking flat. I’m angry about it.”
Latest installment in the Jenrick saga: the communities secretary is now facing a possible parliamentary inquiry into his handling of Richard Desmond's property scheme. With
@PickardJE
When you think about London, you might think of Tesco, the largest retailer in the UK. But despite the store's success worldwide, you won't find it in the U.S. Here's why.
Thanks to
@SebastianEPayne
for the podcast debut. If I sound distracted at points its because my neighbour strolled by naked as I was attempting to unpick the biggest planning changes in a generation...
“Usually the depth of the downturn is in proportion to the magnitude of the bubble, which would imply we’re in for a brutal time.”
Venture Capital reckons with the end of the “megafund” era
?
Banks pulling mortgages, economists forecasting bigger price crashes than in the GFC. Sentiment has soured fast in the housing market.
Who'd have guessed it would do so off the back of a Tory budget?
A new mortgage guarantee scheme kicks off on Monday, designed to "turn generation rent into generation buy".
But banks won't lend against new homes, and builders warn the scheme might hit new housing. With
@NicholasMegaw
As AI models get more and more powerful, the evaluations used to assess their risks and performance are creaking.
"As models get better, the capabilities make these evaluations obsolete," according to
@aidangomez
.
@FT
is expanding its San Fran bureau to deepen coverage of the intersection of money and tech, with
@sjhmorris
as bureau chief,
@RichardWaters
as tech-writer-at-large,
@MActon93
as SF correspondent and
@CristinaCriddle
as tech correspondent. More here:
The government's flagship housing policy has not been "good value for money" according to a House of Lords report out today.
Gove is going after developers to fix the cladding crisis. Help to Buy is a big reason they have the cash needed to help
Whoever replaces Jenrick will have a meaty to do list. Planning reforms look to be heading for the rocks, building safety is in disarray and there's a green homes policy to figure out + plenty more besides. The new sec will be the 4th in 5 years asked to figure it all out.
Before interest rates spiked, homeowners could service mortgages on expensive homes and new buyers could enter the market provided they had a decent deposit.
That dynamic has changed far faster than anticipated, leaving an unaffordable market perilously exposed. (2/3)
Tower construction in London is falling. Rising costs and complexity are deterring developers; safety fears post-Grenfell are deterring buyers. The upshot is that hitting London's housing targets will become even harder.
Chesham and Amersham by-election defeat threatens to derail the Tories landmark planning reform. With
@SebastianEPayne
and that bloke who ate a hat for breakfast,
@PickardJE
Sanctioned Russian bank appeals to UK government to be able to pay sanctioned Libyan sovereign wealth fund for rent on prime City of London property overlooking the Bank of England.
🇬🇧 💷 Welcome to Britain 2022 🇬🇧 💵
👇 with
@GeorgeNHammond
Today I start a new job leading the
@FT
's property coverage, taking over from the excellent
@JudithREvans
. Just as well I have a few quiet weeks to settle in... 😬
Sign of the times in the tech sector as Google, Meta, Salesforce et al cut back on European office space.
Ominous news for London office landlords - tech has been a mainstay of demand in recent years.
Scoop with
@CristinaCriddle
and today's
@FT
splash
By the third anniversary of Grenfell, June 14, every tower with similar cladding was meant to be fixed. But that goal is still years off, with less than 1% of funds set aside for private developers to fix towers having been spent. Pretty damning report.
More than 4 years since Grenfell, the scale of the cladding crisis is still an open question. The Bank of England is increasingly concerned that the costs to lenders may be bigger than expected and could impact financial stability.
Lovely day to vote. My polling card offers Labour Party, Liberal Democrats and, intriguingly, ‘Local Conservatives’. Older gent in the next booth audibly unimpressed: ‘Local Conservatives? The bloody cheek of it’.
Scoop (and first SF byline) w/
@AntoineGara
+
@Tabby_Kinder
Tiger Global tells investors its portfolio of private tech companies is at "fair value" in an effort to reassure them the value of unlisted investments is steady after a string of writedowns.
... & Stuart Andrew is now the 20th Housing Minister since 2000, with the Housing Minister position changing every 15 months on average & Yvette Cooper remains the longest serving Housing Minister over this period (which most people forget).
#ukhousing
#housing
#reshuffle
The
@FT
spoke to Lord Norman Foster about the post-coronavirus city. The architect behind some of the world's best known offices and civic buildings says the pandemic will change cities for the better, and that we might soon be living in office blocks. 👀
Now SBF has been found guilty, Sequoia can break its silence. Alfred Lin, who led the firm's investment into FTX, says he and Sequoia were "deliberately misled and lied to" by the founder
Today’s swift and unanimous verdict confirms what we already knew: that SBF misled and deceived so many, from customers and employees to business partners and investors, including myself and Sequoia.
Prices have fallen in the last few years and are expected to do so this year too. That might provide FTBs some hope.
But real wages are still some way below 2008 levels, and the ratio of wages to prices is close to its highest ever level. (3/5)
Yesterday
@martinwolf_
@sarahoconnor_
and I took on the small matter of how to fix the housing crisis. They only gave us an hour but I'm pretty sure we figured it out...
Watch back here and sign up for the rest of the
@FT
New Deal for the young series.
This weekend's
@ftproperty
front is a despatch from a broken housing market. The supply of homes for sale in the UK has hit record lows, pushing up prices and freezing people out.
How did we get here?