Written By Em

Em Morley

Planning permission numbers highest since 2009

Published On: May 3, 2016 at 11:20 am

Tags: house building levels,housing stock,planning permissions,UK housing

Encouraging new data has show that the number of planning permissions for new homes in England rose during the last year.

According to the latest housing pipeline report from HBF and Glenigan, planning permissions for 255,032 new homes were granted in 2015. This was 57% greater than the 162,204 recorded in 2009.

Increases

Permissions granted in the final three months of 2015 were 13% up on the same quarter in 2014, standing at 74,759. There have been steady rises in permissions over recent years, with housing supply also rising markedly during the last 24 months.

In excess of 180,000 new homes were added to the housing stock list in 2014/15, a rise of 22% year-on-year.

However, many of the permissions noted in the report still have problems to overcome before building work can be started. The industry has long called for the Government to simplify the planning process and make sure local authorities have the capability to deal with the volume of new applications.

These figures show that supply of houses in the future is promising.

Planning permission numbers highest since 2009

Soar in supply?

Stewart Baseley, Executive Chairman of the HBF, said, ‘the number of planning applications now being submitted demonstrates the commitment of the industry to deliver further increases in housing supply. The past two years have seen huge increases in house building levels, with housing supply in England surpassing 180,000 homes per year in 2014-15, up 22% on the previous year. Whilst the increase in the number of permissions is welcome-and a strong indicator of future supply-many still have to navigate the complexities of the planning system. This is a further sign that house builders continue to step up investment in future housing supply but we need to see these permissions being processed to the stage where we can get onto site and start building more quickly and really start to meet demand for housing.’[1]

Allan Willen, Economics Director and Head of Business Market Intelligence at Glenigan added, ‘The strong rise in planning approvals during the closing months of 2015, driven by an increase in the number of private housing units approved, bodes well for housebuilding activity during the current year. The expanded development pipeline will help housebuilders to meet any strengthening in demand from house buyers. Furthermore the rise marked rise in approvals in the Midlands and North of England last year demonstrates that the recovery in housing market activity is becoming more established across the country.’[1]

[1] http://www.propertyreporter.co.uk/property/planning-permissions-at-highest-levels-for-8-years.html

Buy-to-let lenders facing stricter criteria

Published On: May 3, 2016 at 9:27 am

Author: Em Morley

Categories: Finance News

Tags: Buy-to-Let,landlords,mortgage lenders,property investors,residential landlords

Mortgage lenders in Britain are widely expected to limit lending to buy-to-let borrowers, after a decision from the Mortgage Works that moved to restrict the amount landlords can borrow.

The Mortgage Works, a buy-to-let division of Nationwide, said last week that from 11^th May, residential landlords will require to have substantially more rental income relative to the cost of their mortgage than is presently the case.

Stricter

The division has tightened its rental cover requirement, which is the amount a landlord is required to take in rent in comparison to the cost of their mortgage repayments. This figure has now risen to 145%, from 125% previously.

This alteration means that Nationwide will not lend to landlords with a 20% deposit and instead will only lend to those with a minimum 25%. The changes come in response to the Bank of England’s announcement in March that mortgage lenders could face stricter lending criteria when offering mortgages to buy-to-let landlords.

Experts have forecast that property investors will need to have a 40% deposit when looking to purchase property, as a result of the alterations.

Buy-to-let lenders facing stricter criteria

Unsurprising

David Whittaker, managing director at broker Mortgages for Business, noted that he was not surprised to see lenders starting to increase cover ratios for borrowers. He said, ‘as one of the biggest mainstream buy-to-let providers, The Mortgage Works is taking the lead and demonstrating to the market and the regulators that it truly understands the forthcoming tax relief changes. It will be interesting to see how other providers react.’[1]

‘I anticipate a few will be making similar preparation, some will wait until the outcomes of CP11/16 (Recovery and Resolution Plans) are known and others will bury their heads in the sand. ICRs on products for limited companies will remain generally the same as they are now because these borrowing vehicles will not be subject to the new tax relief restrictions. Indeed, it will be the lenders with products in this category who will be the likely winners out of this in the long term,’ Whittaker continued.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/5/buy-to-let-lenders-to-face-tougher-checks

Derby Proposes New Measures to Tackle Rogue Landlords

Published On: May 3, 2016 at 9:21 am

Author: Em Morley

Categories: Landlord News

Tags: Derby,good landlords,Health and safety,rogue landlords

Derby Proposes New Measures to Tackle Rogue Landlords

Derby City Council has proposed a new scheme to help tackle rogue landlords in the area, which could be in operation by the end of the year.

Councillor Baggy Shanker says he is determined to crack down on rogue landlords in Derby and is hoping to replace the existing system, which has been run by the local authority since 2008. Shanker claims the current scheme is no longer “fit for purpose”.

If Labour succeeds in retaining control of the council following this week’s local elections, Shanker pledges to make it much harder for rogue landlords to operate in Derby, by allowing members of the public to freely access an accredited list of private landlords.

Under the present scheme, the council conducts its own research to ensure that landlords are fit and proper. However, the public cannot access this list without contacting the council directly to request feedback about a landlord, including whether or not they are accredited.

Shanker hopes the new proposed scheme would work like an MOT check for both the landlord and their property. An open register would be made available on the council’s website, similar to a Trusted Trader initiative that allows people to check if a firm or tradesperson is considered trustworthy and dependable.

The new landlord list would include health and safety checks, such as ensuring a property has a gas safety certificate, and also checking whether the council has previously received complaints about a landlord, whether they use a deposit scheme, and whether the cost of renting the property is suitable for the area it is in.

Shanker comments: “We are thinking we should work the good landlords, exclude the bad ones and then people will stop using them. Some of the initial feedback [from city landlords] is that they are up for discussing the scheme. We would start it in certain wards: Normanton, Arboretum, Sinfin, some parts of Abbey ward. We may even be able to do it in selected streets.”¹

¹http://www.derbytelegraph.co.uk/New-scheme-pipeline-shame-Derby-s-bad-landlords/story-29203790-detail/story.html

MPs to Discuss Amendments to Housing and Planning Bill Today

Published On: May 3, 2016 at 8:46 am

Author: Em Morley

Categories: Landlord News

Tags: Housing and Planning Bill,landlord law,property market,right to buy

MPs will discuss amendments made to the Housing and Planning Bill this afternoon, after the House of Lords made changes to the controversial new law.

MPs to Discuss Amendments to Housing and Planning Bill Today

There have been 13 outright Government defeats on the bill, as well as several equally significant concessions made by ministers to avoid defeat.

Numerous issues will be discussed, including planning regulations, estate agents, compulsory purchase and environmental standards for homes and drainage, as well as pay to stay provisions, which require those on higher incomes to pay higher rent if they wish to remain in social housing.

Additionally, the controversial Right to Buy extension will be examined. Last week, the Public Accounts Committee (PAC) slammed the scheme.

The PAC emphasised a lack of clarity around how the policy would be funded or what its wider financial impact would be.

The Chair of the PAC, Meg Hillier, says the Government should be “embarrassed” by its findings.

“Extending Right to Buy will affect many thousands of people, yet the department has failed to provide basic information to support its stated aims,” she insists. “Instead we have heard vague assertions about what it will accomplish and how.”

She continues: “The approach to paying for this policy seems to be entirely speculative. On the basis of evidence heard by our committee, there are no costings or workings out. We are not talking about a back of an envelope calculation – there is no envelope at all.”

The Housing and Planning Bill was introduced to the House of Commons on 13^th October 2015 and completed this stage on 12^th January 2016.

The bill then went to the House of Lords for discussion, which was completed on 27^th April 2016.

Today, MPs will consider the amendments made in the House of Lords, before voting on the issue.

Once the House of Commons and Lords agree on the final version of the bill, it can receive royal assent and become an Act of Parliament.

We will keep you updated on all changes to the bill.

Improvement Tips to Add Value to Your Property This Month

Published On: May 2, 2016 at 8:15 am

Author: Em Morley

Categories: Property News

Tags: Bank Holiday,decorating,DIY,garden,property,spring

May is blessed with two bank holiday weekends! So why not make the most of the extra days off with some quick and easy tasks that will add value to your property?

If you are thinking of selling either your home or rental property over the summer months, now is the perfect time to improve and maintain the place so that it’s ready for a quick sale.

While improving a property can be a daunting task for many, there is a host of small and manageable jobs you can do to increase the value of your home. And don’t think you need to replace the whole kitchen or bathroom – simple updates can make a real difference.

Follow these improvement tips to ensure that you get the price you want for your property:

Create space

While not all homes are light and airy, it is possible to create an illusion of space in any property. Spend some time reorganising the furniture in each room to make the best possible use of space. A good idea is to take things off the floor and put them on shelves instead. Also, be ruthless and throw away any clutter.

Get out into the garden

Improvement Tips to Add Value to Your Property This Month

Don’t think you need a gardener or landscaper to transform your garden. Simply getting outside and mowing the lawn, tidying up the general area and planting some bright flowers will spruce up your outdoor space. A good garden is important to most buyers, so follow these helpful tips: https://www.justlandlords.co.uk/news/top-tips-stunning-springtime-garden/

Remember energy efficiency

All buyers will hope to keep their bills down, so it can be worthwhile fitting your property with energy efficient appliances. With new products on the market all the time, buyers will be looking out for ways to knock the costs off their bills. Moving forward, energy efficiency is only going to become more prominent when purchasing a home, so don’t forget it.

Add some life to fixtures and fittings

It is inevitable that all properties will suffer wear and tear, so take a look around and pinpoint anything that may put buyers off. Many prospective buyers will hope to be able to move in without much work needing to be done, so addressing small issues can leave them feeling confident about the condition of the property.

Let in the light

If you have a particularly dark and dreary room that no amount of white paint will brighten, it could be wise to install a new window. This is usually quite reasonably priced and will benefit you in the long-term.

Make small replacements

If you really must replace some fixtures and fittings, don’t think this means you need to splash out on a completely new kitchen or bathroom. Small replacements can make a huge difference – whether it’s a new floor or cupboard doors.

Take on some DIY jobs

With the internet at our fingertips, finding DIY advice has never been easier. Don’t be afraid of picking up the tools yourself and fixing small damages or making minor improvements to the property. But always remember to watch out for yourself – a professional should tackle anything too heavy or difficult.

Add a lick of paint

One of the easiest and cheapest ways to freshen up a property is by giving it a lick of paint. Remember the importance of neutral colours when decorating a home, as some buyers could be put off by garish tones. We have the top interior colour schemes for the spring season: https://www.justlandlords.co.uk/news/interior-colour-schemes-new-season/

Transforming your property and adding value doesn’t need to be difficult – just give your home some TLC this bank holiday!

Landlords to Blame for Decline in DIY Among Under-30s?

Published On: May 1, 2016 at 8:29 am

Author: Em Morley

Categories: Landlord News

Tags: buy-to-let landlords,DIY,first time buyers,Generation Rent,housing crisis

According to new research, buy-to-let landlords are to blame for the sharp decline in under-30-year-olds carrying out DIY work in their homes.

Generation rent cannot afford to buy and fix-up their own homes, reports credit card provider MBNA.

The firm says that spending by under-30s on DIY has fallen by a third since the mid-1990s. It blames the decrease on the rise of buy-to-let landlords.

These figures arrive as a report from Halifax shows that the average age at which people purchase their first home is still rising, with buyers having to take out longer mortgages in order to get on the property ladder.

MBNA’s Mark Elliott explains: “Generation rent is usually barred from making home improvements by clauses in their tenancy agreements. Although [overall] DIY spending has grown by 42% in real terms since 1996, an increase in the proportion of people renting in the UK could impact the sector’s growth in the future.”

Landlords to Blame for Decline in DIY Among Under-30s?

Based on spending trends among millions of credit card customers, under-30s’ spending on DIY has dropped by 32% since 1996, to an average of £108 per year. At the same time, 45-60-year-olds have increased their spending, to an average of £240 a year.

“Any further increases in the average age of first time buyers could impede the DIY sector’s future growth by narrowing the window in which most people undertake DIY tasks during their lives,”¹ says Elliott.

The report from Halifax found that the average first time buyer is now almost 31, compared with 27 in the early 90s. Some predictions say the average age of a first time buyer could be over 40 in the next ten years.

The young adults who are able to get onto the property ladder have to stretch themselves much further with ever-longer mortgages, says Halifax.

It reports that 26% of first time buyers are taking out 35-year mortgages, up from 16% in 2007.

As the average age of a first time buyer rises and the mortgage term is stretched, many will still be paying off their debt into retirement, warns the lender.

The report states: “One in three (34%) young people don’t expect to pay off their mortgage under after their 60^th birthday – more than one in 20 (6%) still expect to be paying their mortgage over the age of 70, while almost one in ten (8%) expect to be paying their mortgage throughout their life.”

The research also highlights the huge deposits that young buyers now have to save. The average deposit size increased by 13% in 2015 to a huge £32,927.

Until now, the size of the deposit has been the single biggest barrier to buying a home. But now, it is the size of the deposit and the absolute level of house prices combined that are keeping youngsters off the property ladder.

“The generation rent report has repeatedly shown that raising a deposit has been the consistent barrier for the majority of would-be homeowners,” says Halifax. “However, the 2016 report tracks the emergence of high property prices being perceived as an increasingly large barrier to purchasing a first home (rising to 60% in 2016 compared with 52% in 2011). The average price of a first property is now £196,801, rising from £134,889 in 2010.”¹

But the situation does not look set to improve. Figures from the Office for National Statistics show that the number of private rental homes has more than doubled in recent years, from 2.13m in 2001 to 4.74m in 2015. And prices in the private rental sector aren’t low either – the average two-bedroom property in London is forecast to cost £2,000 per month by September.

¹http://www.theguardian.com/lifeandstyle/2016/apr/29/buy-to-let-landlords-decline-diy-under-30s-generation-rent-age-first-time-buyer