Written By Em

Em

Em Morley

Are we Building in the Wrong Places?

Published On: August 5, 2015 at 3:51 pm

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It is well known that the UK is facing a serious housing crisis, fuelled by a lack of new homes. But are the homes we are building even in the right place?

The UK’s population is rising at an increasingly fast rate, but the level of house building has dropped recently. Two years ago, it even fell to a post-war low of 135,000.

It has been suggested that when homes are being built, they’re in the wrong places.

The following maps explain this idea:

The first map shows the rate of population growth in different parts of the UK. The darker the red, the more people.

The second map indicates the rate of house building in different locations around the country. The darker the red, the more homes being built.

This issue is worst in London, with the Greater London Authority (GLA) estimating that the capital needs between 49,000 and 62,000 new homes per year to keep up with demand.

However, the London Plan, the strategic planning team at the GLA, has set a target of only 42,000 a year. This was calculated based on how many it believes can be accommodated. Last year, the capital built around half of this, just 24,000.

Director of planning consultant Quod, Barney Stringer, who produced the data for the maps, expresses his concern: “There is an overall shortage of housing and not enough house building, and new homes are needed almost everywhere, but the high growth areas that need it most are not managing to provide new homes much faster than low growth areas.

“The really big planning question for the next few years is whether the districts around London can and will provide for any of the growth that London can’t accommodate. The maps show quite how little is being achieved at present.”1

But one of the biggest debates surrounding house building is the green belt.

When the Business Secretary, Sajid Javid, highlighted the Government’s plans to relax planning laws in a bid to drive up house building, he emphasised that the proposal would never breach green belt rules.

The green belt is the land surrounding towns and cities, which was reserved as building-free over 50 years ago.

However, ministers have recently released figures that indicate there is not enough brownfield land in the UK to accommodate the 300,000 homes that the country needs.

The Department for Communities and Local Government estimates that there is enough land for around 200,000 homes to be built on brownfield land.

Research by business group London First shows the huge opportunity that the green belt would offer to solve the UK’s housing crisis, compared to sticking to brownfield sites.

In total, urban areas of England cover just 9.9% of the total landmass and actual built areas just 4.2%. The green belt covers 12.4% of the total area of England.

London First, Stringer, academics and the Organisation for Economic Co-operation and Development (OECD) believe that the green belt should not be preserved forever.

The OECD says that the green belt is “a major obstacle to development around cities, where housing is often needed.”1

However, the Council for the Protection of Rural England argues that the green belt is to stop urban expansion.

Regardless of the solution, the two maps above reveal that when the UK does build, it’s in the wrong places.

1 http://www.independent.co.uk/news/uk/politics/the-two-maps-that-show-the-government-isnt-building-enough-houses–and-the-ones-they-are-building-are-in-the-wrong-places-10414255.html

New Group Formed to Address Housing Crisis

Published On: August 5, 2015 at 2:54 pm

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The new All-Party Parliamentary Group for Housing and Planning has been formed to address the housing crisis.

The group’s secretariat will be the Royal Institution of Chartered Surveyors (RICS).

New Group Formed to Address Housing Crisis

New Group Formed to Address Housing Crisis

It will be chaired by James Cartlidge, the Conservative MP for South Suffolk and involve MPs from a range of urban and rural constituencies.

The group has four vice-chairmen, including the former housing minister, Mark Prisk.

Cartlidge explains the organisation’s objective: “Housing is increasingly becoming one of the most critical policy challenges facing local and national government, and with a housing bill pending, it is likely to become more political and controversial.

“In this context, a cross-party parliamentary group focused objectively on the national policy challenge of housing offers a vehicle for taking the debate forward in a way that is both positive and constructive.

“Having spent my working life in the shared ownership housing sector, I am acutely aware of the challenges facing first time buyers, particularly in London.

“Equally, as a rural MP, I recognise the need for development to be sustainable. Ultimately, there are a whole raft of complex issues in housing and planning today, but I hope that we can make a real contribution to the debate.”1

Sean Tompkins, Chief Executive of the RICS, says: “We currently need to build in the region of 245,000 homes every year if we are to address the UK’s housing crisis.

“The solutions we need must be innovative and wide-ranging, but also grounded within a political framework, which allows them to be implemented.”1

1 http://www.propertyindustryeye.com/new-all-party-committee-formed-to-look-into-housing-crisis/

Deposit Protection Service Awards over £100,000 to Charities

Published On: August 5, 2015 at 1:57 pm

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The Deposit Protection Service (DPS) has awarded over £100,000 to charities, with the most recent donations to organisations in Bristol, Colchester and Sheffield.

Deposit Protection Service Awards over £100,000 to Charities

Deposit Protection Service Awards over £100,000 to Charities

The DPS is the largest provider of deposit protection in the UK. It established a fund last year to support charities that help the homeless and those that need help to live independently.

Head of Tenancy Deposit Protection at the DPS, Daren King, comments: “The DPS has now given £100,000 in donations to charities over the course of 15 months.

“StopGap Sheffield, Cintre Community in Bristol and Colchester Emergency Night Shelter are the most recent recipients. They provide vital services and we’re very pleased to be able to help fund the support they provide to those who need it.”1

StopGap Sheffield covers the cost of short-term accommodation for homeless people in the city. It will use its £5,000 donation to provide food and shelter as well as supporting those escaping violence.

Cintre Community offers services to vulnerable people in residential and community situations. A £5,000 award from the DPS will provide funds for Cintre Reachout in the South West, a service that helps people with various learning difficulties to live independently in their own homes.

Colchester Emergency Night Shelter helps homeless adults in many ways, from CV writing to providing emergency accommodation. The DPS’s £10,000 donation will help renters through their first year of a new tenancy by guaranteeing rent, offering a conciliation service and supporting the tenant in becoming an active member of the community.

Housing sector charities can apply for funds at the DPS website: http://www.depositprotection.com/charity

The next round of applications closes on 30th September.

1 http://www.propertyindustryeye.com/dps-chalks-up-over-100000-in-donations-to-charities/

Large Property Firm Reports 80% Drop in Profits

Published On: August 5, 2015 at 1:01 pm

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LSL Property Services, the parent company of Your Move, Reeds Rains, Marsh & Parsons and Davis Tate, has reported an 80% drop in pre-tax profits.

Profits fell from £31.4m last year to £6.2m, although group revenue changed only slightly, up from £139.8m in the first half of last year to £140.2m in the same period this year.

LSL said that revenue from house sales was hit by “weak first half market conditions.”

Large Property Firm Reports 80% Drop in Profits

Large Property Firm Reports 80% Drop in Profits

Its estate agency division earned £109.1m, similar to last year’s £108.6m. However, the division’s operating profit margin fell to only 5.8% from 11.3% and exchanges were down 6%. The firm said that it has maintained its average fees.

Residential sales income declined by 5% to £42m, down from £44.4m. Contrastingly, lettings revenue increased by 11% to £30.6m.

In London, Marsh & Parsons experienced a decrease in revenue of 5% to £15.4m. Sales were down by 13%, with 6% growth in lettings income. Lettings now accounts for 50% of Marsh & Parsons’ revenue.

LSL claims that its board is optimistic about the rest of the year, with solid sales pipelines, positive market sentiment and growth in activity. It reports that it has witnessed stronger trading in June and July.

The company purchased Thomas Morris estate agents in February and spent £3.9m on 13 businesses in the first six months of the year.

Chairman of LSL, Simon Embley, says: “The group has delivered a resilient first half performance in an evolving market. Key economic growth indicators, the political landscape and consumer confidence all remain positive, although the market is seeing lower levels of estate agency instructions, and availability of stock outside of London and the South East.

“With increasing levels of activity seen in recent months, robust pipelines and a broad coverage of the whole UK residential property sector, LSL is well placed to capitalise on the underlying market fundamentals.

“The outlook from lenders remains positive, with historically low mortgage rates and increased distribution of products through intermediary channels.

“As a result, we expect the market to return to year-on-year growth in the second half of the year, and the board remains confident in delivering year-on-year operating profit growth in the second half of 2015 and a full year result in line with expectations.”1 

1 http://www.propertyindustryeye.com/parent-company-of-your-move-and-reeds-rains-announce-results/

Affordable Housing Planning Policy Cancelled

A Government planning policy that could have allowed luxury London landlords to escape over £1 billion a year in affordable housing payments has been cancelled.

Housing Minister Brandon Lewis revealed the vacant building credit at the end of 2014, but councils soon experienced chronic housing shortages.

The credit allowed developers that were planning to convert vacant office buildings into flats to pay only an affordable housing contribution on new space created. Before its introduction, developers paid according to the size of the whole building.

Westminster Council voiced its concerns in January, stating that it could lose £1 billion a year from its affordable housing fund and called the credit “insane”.

On Abu Dhabi Investment Council and Finchatton’s project to redevelop the former US Navy HQ in Mayfair, the Council said that its affordable housing payment fell from £17.6m to just £8.6m.

Affordable Housing Planning Policy Cancelled

Affordable Housing Planning Policy Cancelled

A legal battle by West Berkshire District Council and Reading Borough Council has resulted in a judge ruling that part of the policy was incompatible with the legal structure for planning.

Head of Planning at law firm Mishcon de Reya, Daniel Farrand, says: “This means that councils will be able to once again levy affordable housing requirements on developments in accordance with their own local plan policies.”1 

Brandon Lewis initially launched the plans to boost house building and put vacant properties back into use.

Some raised concerns that developers could kick tenants out of offices to convert them into flats and others would resubmit plans already granted permission to take advantage of the lower affordable housing bill.

The decision to cancel the policy was welcomed by numerous politicians and groups.

Labour Mayor of London candidate, Tessa Jowell, says: “The vacant building credit has done untold damage to London and has now rightly been quashed by the courts.

“This Tory scheme delivered developers a loophole to avoid providing any affordable housing – just when our city needs it most.”1

A Generation Rent spokesperson adds: “This loophole absolved them [developers] of any responsibility to make a contribution to wider society and with the economy booming that is completely unjustifiable.”1

Mark Williams, Southwark’s councillor, believes it was “a deeply unjust policy that could have cost thousands of new affordable homes.”

A spokesperson for Labour Built Environment adds: “This court decision is a victory for common sense and will help generate more affordable homes in London.”1

JR Capital manages money from the Middle East for residential property investors. It says it does not believe the removal of the credit will stop developers investing in London.

The Department for Communities and Local Government says it is “disappointed by the outcome” and will seek permission to appeal against the judge’s decision.

It explains: “We’ve got Britain building and we’re determined to maintain this momentum, including by reducing the red tape and extra costs that prevent smaller developments from getting built.”1

The British Property Federation thinks that affordable housing payments should be set at a local level, rather than by the central government.

1 http://www.independent.co.uk/news/business/news/london-property-insane-planning-policy-that-could-have-saved-luxury-landlords-1b-a-year-quashed-10437270.html

easyProperty looking to secure Premier deal

Published On: August 5, 2015 at 11:57 am

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The football season returns in just three days and with optimism rife, predictions made and new signings in place, there is still one deal that is yet to be concluded.

After lengthy negotiation, the proposed easyProperty sponsorship of Tottenham Hotspur is still yet to be concluded.

Signing?

In March, the Daily Telegraph said that the online letting agency was in talks with the Premier League outfit over what it described as, ‘a multi-million pound sponsorship deal.’ Just the next day, marketing website The Drum, revealed that easyProperty was, ‘poised’ to sign a deal with Spurs.

However, with the start of the new Premier League campaign just days away, there is still no official word from White Hart Lane. Spurs’ website does not list the letting agency as one of its sponsors.

A representative from easyProperty commented, ‘they are in late stage talks but nothing has been agreed. The fact that Tottenham is the centre of a major regeneration scheme is of great interest and adds additional interest to the sponsorship.

easyProperty looking to secure Premier deal

easyProperty looking to secure Premier deal

Good company

If the deal is concluded, easyProperty would be in good sponsorship company, with Carlsberg, Marathon Bet, StubHub and Thomas Cook amongst Spurs’ official partners.

Reportedly, easyProperty are looking to have their logo utilised on the numerous advertising hoardings around the pitch, alongside buying into hospitality suites and player access. The Telegraph reports that a person, ‘close to the deal,’ said that the letting agent also wants to get, ‘involved in the local community,’ through any sponsorship deal.[1]

Considering a deal is eventually struck, the move could be considered as Champions League qualification for easyProperty. However, should an agreement not be reached given the advanced announcement, the letting agent will have certainly put one in its own net.

[1] https://www.estateagenttoday.co.uk/breaking-news/2015/8/easyproperty-and-spurs-still-talking-on-sponsorship