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Em Morley

New Online Portal to Assist Londoners in Finding an Affordable Home to Buy

Published On: June 28, 2018 at 9:25 am

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Sadiq Khan, Mayor of London, has recently decided to launch an online portal, providing the citizens of London with a one-stop shop where they can search for and access affordable homes to buy in the capital.

This official platform has already listed over 1,400 shared ownership and 230 Help to Buy properties. The predominant aim of the platform is to assist Londoners who are unable to afford to buy a property on the open market. All homes will be funded through City Hall affordable housing programmes. New properties intend to be continually added.

The Mayor is strongly encouraging Londoners to sign up to london.gov.uk/homes   where they can register an account. The account will allow them to receive emails and alerts in the local area, register their preferences and interests in homes, check their eligibility as well as book viewings.

The Mayor of London, Sadiq Khan, said: “Here at City Hall, we’re doing everything we can to make sure all Londoners are able to buy a good-quality, affordable place to live in the city to call home. The Homes for Londoners website is a fantastic one-stop shop, bringing together affordable homes into one place for people who would struggle to buy in the open market. More and more homes will be added to the portal, so I urge Londoners to get online, set up a free account, and start browsing.”

In 2017, the Mayor’s Homes for Londoners Programme witnessed 12,526 affordable properties started. This was more than in any year since City Hall took ownership of the housing investment. Half of these homes were claimed to be affordable homeownership, alongside 2,826 brand new homes based on social rent levels.

Further plans for the platform later this year will be launched, including below-market rental properties being made available This portal is accessible on the Mayor’s website alongside his online Rogue Landlord and Agent Checker – a publicly accessible tool, enabling London’s 2.4 million tenants to make sure that their prospective landlord or agent has been previously convicted of any housing offences.

If any suspicions do arise, Londoners are urged to report this to their local council.

 

 

Government Multi-Billion Pound Investments to be made in aid of Affordable Homes Progress

Published On: June 28, 2018 at 9:05 am

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It has been confirmed that there is to be a multi-billion pound boost to social housing across England. This confirmation comes from Secretary of State for Communities, the RT Hon James Brokenshire MP, as part of the big push to deliver new builds to communities in need of more housing.

This will result in around 23,000 new affordable homes, as a result of a £1.67 billion government investment deal. In an attempt to support struggling families, this will include the addition of at least 12,500 social rent homes to high cost areas.

This movement is part of a £9 billion investment by the government to help provide affordable homes. £1.67 billion of this was announced in March 2018 for London. This latest funding will go towards supplying such homes across the rest of the country.

Local authorities were also invited by the Communities Secretary to bid for a share of £1 billion extra borrowing in order to build these much-needed homes. This has resulted in a raise of £1 billion to the cap of borrowing available, to be split equally between London and the rest of England.

This extra financial flexibility has been requested by local authorities. It will be allocated to the areas with the highest affordability pressures, in order to ensure that homes are being built where they are needed most.

Overall, the aim of the government is to build 1.5 million new homes by 2022. This ambitious plan is thought to be achievable through planning reform and targeted investment.

James Brokenshire commented: “The government has ambitious plans to fix the broken housing market and build the homes our communities need.

“Today’s announcement is a further milestone. It will secure the delivery of an additional 23,000 much-needed affordable homes as well as paving the way for a new generation of council houses.

“The majority of these new homes will be in high cost areas helping to ease the burden of rent on hard working families and delivering stronger communities.”

The bidding for both of these programmes will now begin. The areas which have made successful bids for affordable homes funding will be notified throughout the year, and the councils that have successfully had their borrowing caps increased will be announced as a list.

Price Increases for Apartments Show Rise in Popularity

Published On: June 28, 2018 at 8:03 am

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Halifax has released data revealing an increase in value for the average UK apartment. Over the past five years, prices have increased by £1,252 per month, resulting in a rise of £75,074 over the period.

Although the proportion of apartments in relation to home sales makes up just 15%, the Halifax data shows that such accommodation is becoming increasingly important in relation to urban labour markets. The data shows an increase by 48% in the value of apartments between 2013 and 2018. Terraced houses also saw an increase, but not by as much, at 42%, and detached homes only increased by 27%.

Jonathan Stephens, Managing Director for Surrenden Invest, said: “The sustained level of demand for apartments in regional city centres has shown solid credentials, even in the wake of the Brexit referendum. With dynamic local economies and solid labour markets, regional cities are an enticing prospect for those looking to make capital gains, whether as owner-occupiers or investors.

“In fact, the majority of investors we work with now come to us with a regional city firmly in mind – London has lost its shine as a residential investment prospect as the UK’s other cities are producing better returns.”

The latest House Price Index from Halifax shows home values to have risen during May by 1.5%. The lender has pointed out that two reasons for this include the recent performance of the labour market, as well as low interest rates.

Russell Galley, Managing Director of Halifax, has commented: “The continuing strength of the labour market is supporting house prices. In the three months to March the number of full-time employees increased by 202,000, the biggest rise in three years. We are also seeing pay growth edging up and consumer price inflation falling, and as a result the squeeze on real earnings has started to ease. With interest rates still very low we see mortgage affordability at very manageable levels providing a further underpinning to prices.”

The UK population is expected to exceed 70 million by mid-2029, and there is a steady increase of urbanisation reported by market research company Statista, with it sitting at 82.84% in 2016, up from 80.2% in 2006. This may result in the demand for city centre apartments to remain consistent for the next few years. With apartment prices increasing at a rate faster than those of other accommodation types, they may continue to be a popular choice for investors.

Independent Review Analysis Suggests Changes to Boost House Building

Published On: June 27, 2018 at 9:42 am

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With the current issue of new house building moving at a slow rate, there has now been a call for changes that should speed up the process. These changes aim to get thousands more British Bricklayers trained in order to help meet government targets.

A study by Conservative Politician Rt. Hon. Sir Oliver Letwin, commissioned by the government, was released yesterday, showing that the system is being slowed down by developers limiting the number of new build homes that are available for purchase at any one time.

The idea behind this staggering is that it should help prevent the prices of properties in the local market from falling, and it is known as the ‘absorption rate’.

However, when it comes to the design, size and tenure of new homes, the report shows how these choices could be increased without having an impact on the local market. This could therefore speed up the rate of buying and selling for the properties concerned.

The analysis goes on to address the shortage of bricklayers within Britain, which it states will have a “significant biting constraint” on the Government’s plans to further the advancement of new homes built, bringing it from 220,000 to 300,000 a year.

A total of 15,000 additional bricklayers has been called for by the analysis, to be trained over the next five years. It suggests that to “raise production of new homes from about 220,000 to about 300,000… the government and major house builders work together … on a 5 year ‘flash’ programme of pure on the job training.”

Sir Oliver Letwin said: “I would like to thank everyone who has contributed to the Review Panel’s work to date in analysing all possible reasons behind the slow build out of housing sites.

“It is clear that the main cause for delay is the absorption rate. We found that if house builders were to offer more variety of homes and in more distinct settings then overall build out rates could be substantially accelerated.”

Secretary of State for Communities Rt. Hon. James Brokenshire MP said: “We want to help people onto the housing ladder, and so I would like to thank Sir Oliver and the expert panel for their excellent work.

“I was particularly interested to see that increasing the choice of design, size and tenure of new homes in helping to speed up build out rates and help deliver the homes we need and communities want. I look forward to receiving the final report in the autumn.”

The draft analysis for the study is available to view here.

Insufficient Enforcement in Rental Sector Incentivises Rogue Landlords and Agents

Published On: June 27, 2018 at 8:54 am

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According to Kate Faulkner, Housing Market Commentator for the TDS Charitable Foundation, failure to enforce private rental sector (PRS) regulations is incentivising rogue landlords and agents.

Faulkner discovered that, despite efforts to rectify regulation and standards in the sector, including Housing Health and Safety Rating System, a lack of compliance was shown, in addition to a lack of enforcement by some landlords and agents. Due to this, many efforts made, were futile.

145 pieces of legislation have been presented covering the PRS, with 50% revealed since 1996. However, more properties are deemed as ‘non-decent’.

The report utilises data taken from the English Housing Survey to convey that, despite the proportion of non-decent properties with reported issues of overcrowding, damp, fire risks or hazardous electrics, there are properties in the PRS dropped from almost 47% in 2006 to 28% in 2015. The growth of the sector has meant that these properties have increased from 1.2m to 1.3m.

The report expresses that, whilst the legislation introduced had rendered properties far safer, such as rules on gas safety, there remained many tenants who were oblivious to what passed as acceptable standards for a property.

It also warns that the cost of improvements could mean that rents will rise and that it will be more difficult for tenants to afford decent homes.

Faulkner comments: “Due to the rising costs to good landlords and a scant enforcement of PRS regulations, there is an incentive for some landlords and agents to act outside the law to increase their profit margins.

“The increased costs to landlords of buying a property, then letting it legally and safely, means that in some cases rents have increased beyond the means of some tenants. Reputable landlords and agents are being penalised financially for abiding by the law.

“It can create a vicious cycle and a two-tiered rental market, which the legislation was never intended to create.

“The problem, as I see it, is that bills are introduced on the sector all the time but aren’t backed with a communications plan or funding for enforcement.

“Myriad legislation can be confusing for tenants, and rogue landlords and agents often get away with offering sub-standard homes as tenants don’t know their rights.

“In reality, tenants hold the power in terms of accepting or rejecting poor or dangerous properties, although where supply is scant, this power disappears.”

Furthermore, the Government has recently launched new online information, with the purpose of enabling landlords and tenants to be certain about what rights they have. In addition, rental guides published by the Ministry of Housing, Communities and Local Government, also include checklists for landlords, existing tenants and letting agents.

These new guides will be extremely effective, as, private landlords will be provided with the opportunity to further their knowledge, regarding their primary responsibilities and most effective practices when letting a property. Moreover, paramount knowledge on how to conduct gas safety checks, install smoke and carbon dioxide alarms will be furthered, alongside the process of tenancy deposit protection.

Housing minister Heather Wheeler commented: “Every day across the country thousands of people move house – from young people leaving home for the first time, to those relocating after years in the same property.

“Whatever the circumstance, we want to ensure renters, landlords and leaseholders are armed with information so they know their rights, responsibilities and can challenge poor behaviour.

“The guides will be reviewed in light of any new legislation to ensure tenants, landlords and leaseholders are supplied with up-to-date information.”

 

To ensure that landlords understand their responsibilities, and protect the health and safety of their tenants, we have a wide range of free, useful guides on a host of lettings laws – view them here: https://landlordnews.co.uk/guide/

Call for New Housing to find Balance Between Building More and Building Beautiful

Published On: June 27, 2018 at 8:06 am

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The target has been set by Chancellor Phillip Hammond to see 300,00 new homes built per year by the mid-2020s. However, a recent report by Policy Exchange discusses the importance of the design, style and quality of these new homes. The report intends to start a debate about these factors, and how the needs of those who will be living in these homes should also be met.

In the executive summary of the report Building More, Building Beautiful, it is stated: “People don’t want excitement or drama from the design of their home. They want a sense of community, comfort and togetherness.

“The phrase ‘fittingness’ has been used in previous research and perfectly sums up the desires of most people. They don’t want identikit soulless developments or alienating expansive glass towers. They want homes that fit in with those already there. They want a sense of belonging and happiness to radiate from their properties. And they want to feel proud of their home.”

The report shows results from a public polling that there is a keenness for new builds to fit in with the style of the existing built environment. This poll was answered by 5,013 respondents from London and the South East, with 74% saying that new homes should fit in with their surroundings.

The poll also revealed that there is a desire for homes to be private, spacious and with design qualities such as feature windows and exposed brick facades.

However, it should be considered whether a focus on the design might cause an increase in prices for such housing. A planner in one of the focus groups gathered for the poll commented: “The problem with pushing for design, and if that pushes the cost up, is the viability of the scheme affects whether or not you get affordable housing, which is a massive need… there comes a point, the land values are so high that you’re in a trade-off situation.

“Do we want to really push on design? Actually you’ll find that local people, and local councils generally do want to push on design, but there’s a cost to that. You might not get health and education contributions, you really struggle to get affordable housing, so actually, there’s a limited pot that developers are able to commit.”

Is it time to reconsider the design of new homes? Secretary of State for Housing, Communities and Local Government James Brokenshire believes this is so. He contributed the foreword to the report, in which he underlines our current government’s commitment to meeting the country’s “pressing housing need”.

He goes on to say that more can be done about the major concerns of design, style and quality of new homes. He recognises that it is a particular need in London.

The full report by the Policy Exchange can be viewed here.