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Em

Em Morley

Restoring Houses of Parliament could cost £5.7bn

Published On: June 19, 2015 at 10:13 am

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Carrying out restoration work on the Houses of Parliament without moving any MPs or peers could cost up to £5.7bn and would take a staggering 32 years to complete, according to a report.

However, if MPs and peers were to leave the premises during restoration, the cost could be cut dramatically to £3.5bn, the Independent Options Appraisal report states.

Damage

The Houses of Parliament is 150 years old and is a Grade 1 listed building. A 2012 report on the building revealed that it is sinking, is full of asbestos and has out of date cabling. The report states that without substantial restoration work, the Houses could suffer, ‘major, irreversible damage.’[1]

In the upcoming years, both the Commons and Lords will vote on what renovation route they will take.

Options

If it were decided that the £3.5bn option is to be taken, the Houses of Parliament would receive some new features, such as a lift for the Elizabeth Tower, a new media centre for television interviews and informal meeting rooms for those working within the Palace of Westminster.

For a slightly increased price of £3.9bn, the full-move out of all MPs and peers would allow for a new visitor centre, with exhibition and conference facilities.

It is estimated that this will take a period of between 9 and 14 years.

The report states that it does not advise members which option to choose, but a full move out is described as, ‘providing the best opportunity to mitigate risks, but the report recognises this would create logistical challenges.’[1]

Relocation

There are a number of alternative temporary homes for ministers if they choose to vacate the Houses of Parliament while restoration work is taking place. These include:

  • Queen Elizabeth 2nd Conference Centre

This Westminster venue is said to be the most likely temporary home, as it is only two minutes away from Big Ben.

  • Olympic Park media centre

Offering 1.2m sq ft of commercial space, this seems an ideal spot in the Olympic Park located in Stratford.

Restoring Houses of Parliament could cost £5.7bn

Restoring Houses of Parliament could cost £5.7bn

  • Birmingham Library 

Unsurprisingly the favourite choice for a number of some West Midlands MPs, this award-winning library was voted the top new building in the UK according to a 2014 BBC poll.

  • Manchester Town Hall

This building has already been used as a double for Parliament in films and there is no doubt that this grade-one listed building looks superb.

Restoration programme director Richard Ware said the members were faced with some tough decisions. Ware commented, ‘it is clear from this report that Parliament is faced with some difficult choices. The Palace of Westminster is a building of huge national and international importance and we face a massive challenge in securing its future.’

‘Parliament will now consider the recommendations of the Independent Options Appraisal and will do everything possible to secure value for money and ensure transparency throughout the process.’[1]

[1] http://www.bbc.co.uk/news/uk-politics-33184160?ocid=socialflow_twitter

 

 

Homeowners prefer older properties

Published On: June 18, 2015 at 5:02 pm

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An interesting piece of research has suggested that UK homeowners prefer older properties than new builds. The questionnaire found that a growing number of property owners see newer homes as cramped, characterless and of inferior quality than older houses.

The survey conducted by the HomeOwners Alliance found that just 21% of respondents would want to buy a new-build property, with 47% wanting a home that is at least 10 years old.[1]

Low quality

38% of people questioned for the report said that they a substandard build standard quality would be the main disadvantage of owning a freshly built home. A third were not pleased about the size of rooms, with others complaining about the size of gardens and the lack of charm.

Paula Higgins of the HomeOwners alliance, feels that, ‘we need more new homes, but they have to be homes that people want to live in, not homes that are quick, easy and cheap for house builders to throw up.’[1]

‘What we need to solve the housing crisis are quality homes of character and space, and challenge the housing industry to deliver,’ Higgins continued. ‘After the war, they built homes for heroes. All we want is homes fit for home owners. Homes shouldn’t be built just for a quick profit, but to last for generations to come,’ she added.[1]

Homeowners prefer older properties

Homeowners prefer older properties

Benefits

Despite the perceived negativity, positive responses to new homes were also recorded. The biggest benefit of a new build home was found to be low maintenance costs and higher energy efficiency.

Kim Vernau of BLP insurance, stated that, ‘with activity in the construction industry on the increase as local authorities and developers attempt to meet the housing shortfall, there is a real risk that building standards will slip.’ Vernau feels that,’ consumers want peace of mind and reassurance that the home they are purchasing is fit for purpose and built to last rather than simply chasing a house-building statistic.’[1]

 

[1] http://www.propertywire.com/news/europe/new-homes-uk-poll-2015061810646.html

 

 

Five tips for friends buying property together

Published On: June 18, 2015 at 4:13 pm

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There have been a number of enquiries from first-time buyers looking to share with their friends in order to financially subsidise their first home.

With this in mind, independent mortgage broker Private Finance has provided five key-tips for gaining access to valuable finance when purchasing property with a friend.

Straightforward

Experts at Private Finance describe co-borrower mortgages as more straightforward to obtain, due to lack of discrimination towards co-borrowers that are not related or married. However, the broker has issued the following five top tips for ensuring the best possible chance of obtaining finance for co-habiting friends:

  • Talk to legal experts 

Anyone looking to purchase a house with a friend should make sure that they have formal legal agreements in place. This agreement should take into account all possible future eventualities where circumstances could change. Examples of these changes could be one friend getting married or a disagreement leading to one or more friends wishing to leave.

  • Don’t hide finances

When buying a home with a pal, discussing finances could be something of a sticky point, especially if one investor is considerably wealthier than the other. However, it is better to be upfront from the beginning over how much each person has in the bank. If friends are not prepared to disclose their personal information which each other, then they are certainly not right to live together!

This is particularly important when considering a mortgage, as both credit profiles will be linked.

Five tips for friends buying property together

Five tips for friends buying property together

  • Look around for the right deal

Not only for friends buying together but for anyone looking to purchase a property, searching around for the right mortgage is extremely important. For young friends, short-term mortgage deals are the most obvious and popular choice. There could be advantages for one product over another, which is why it is important for all borrowers to seek sound legal advice before pressing ahead with plans.

  • Make a joint account 

By making a joint account, the job of sorting out bills and other joint expenses is taken away from one person, thus reducing the risk of disputes.

  • Keep a list of what is shared

The simple drawing up of an inventory of shared items in the legal agreement is very advisable before purchasing a house. Once again, this will negate the chance of any disagreements should one party come to move out.

 

 

UK affordable housing scheme exceeds target

Published On: June 18, 2015 at 2:47 pm

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Encouraging news has been released today with the announcement that the number of affordable homes delivered in Britain over the last five years has exceeded target.

Housing Minister Brandon Lewis said that more than 260,000 affordable homes have been provided since April 2010. A new target of delivering 275,000 homes in the next five years has now been set.

Increases

Mr Lewis announced that 60,000 affordable houses were provided during the last year, a substantial rise of 63% from the same period twelve months ago. Announcing the new target, the Housing Minister stated that there would be a £38bn public and private investment in the Affordable Homes Programme until 2020. Since the programme began in 2011, the scheme has provided 186,000 homes, which was 16,000 more than originally planned.[1]

‘This Government is determined to ensure anyone who works hard and aspires to own their own home should have the opportunity to turn their dream into a reality,’ said Lewis. ‘Our affordable housebuilding efforts are exceeding our ambitions and delivering more than 260,000 affordable homes.’[2]

UK affordable housing scheme exceeds target

UK affordable housing scheme exceeds target

He went on to state that, ‘it’s a boost to families across the country, providing them with new quality homes that are available at an affordable rent or to buy through our shared ownership scheme. This is real progress but we know there is more to do. That’s why £38bn of public and private investment will be made available over the next five years to deliver £275,000 extra affordable homes, the fastest rate of delivery for 20 years.’[3]

The Affordable Homes Programme  

Covering social rental homes, home ownership schemes and affordable rented homes, the Affordable Homes Programme is crucial in the government’s long-term economic plan.

[1] http://www.propertywire.com/news/europe/uk-affordable-homes-target-2015061810644.html

 

 

Yorkshire property prices soaring

Published On: June 18, 2015 at 12:24 pm

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Yorkshire has experienced the largest property price jump outside the South East of England over the last year, according to new data released today.

Research from property website Rightmove indicates that the average cost of a home in the county is now £174,000, an increase of almost £6,000 on the same period last year. Rightmove suggests that the lengthening imbalance between supply and demand is forcing average prices up.[1]

Post-election surprises

Taking England as a whole, the number of properties listed for sale was down 8.5% on the same period last year, with last month also seeing a 3.9% fall in supply of new homes. This has surprised a number of experts, who felt that supply would surge following the outcome of the election.[1]

Miles Shipside, director of Rightmove, described the fall in supply as, ‘unanticipated.’ He went on to say, ‘agents report that the election surprise has given a boost to market sentiment, driven by more certainty about future economic and taxation policies.’[1]

‘While would-be buyers have been able to respond quickly to these events, many potential sellers have so far failed to come to market,’ Shipside continued. ‘This has pushed up some of the asking prices of those properties that have been marketed, meaning that buyers are faced with paying a new average record price high for the more limited choice available.’[1]

Shipside describes this as, ‘the price of political certainty.’[1]

Yorkshire property prices soaring

Yorkshire property prices soaring

Rises

Property prices in Yorkshire have increased substantially, but the average home still costs less than in all other parts of the country, apart from the North East, where prices average at £144,000. Across both England and Wales, the average property on the market is more than twice as costly as those in the North East of England at £294,351.[1]

Shipside feels that the market is set for a surge during the second-half of the year, stating, ‘it all seems set-up for an active second-half housing market in 2015, barring any external shocks to the economy. However, it remains to be seen whether stretched buyer affordability can reach sellers’ post-poll pricing.’[1]

‘The new Government and other stakeholders now need to urgently deliver more new-build homes, to stop asking prices being pushed further up.’[1]

[1] http://www.yorkshirepost.co.uk/business/business-news/house-prices-grow-faster-in-yorkshire-than-anywhere-else-1-7308747

 

 

Gross mortgage lending remains steady in May

Published On: June 18, 2015 at 11:01 am

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Latest reports from the Council of Mortgage Lenders has indicated that gross mortgage lending during May remained stable, both month-on-month and year-on-year.

Despite rising by 2% on April to total £16.2m, total lending was 3% down on the £16.8m recorded a year ago. However, forecasts from the Bank of England suggest that the market will improve over coming months, backing up the CML’s belief that a recovery is starting to take shape.

Stability

CML economist Mohammed Jamei feels that, ‘economic environment is one that should support increased activity in the near term, coupled with low mortgage rates. But while we expect these factors to support activity, there is a limited upside, driven mainly by affordability constraints.’[1]

Richard Sexton, director of e.surv chartered surveyors, noted, ‘the mortgage market has shown stability against all the odds. Last April saw the new MMR regulations come into play, whilst this April, we were anticipating the most uncertain election in a century. Against these headwinds, the lending recovery has been remarkably resilient.’ Sexton described the stability as, ‘encouraging,’ as he feels it signals a, ‘potentially sustainable long-term trend, rather than the volatile days of recent years.’[1]

Gross mortgage lending remains steady in May

Gross mortgage lending remains steady in May

The proportion of lending to borrowers with smaller deposits is holding steady, as banks continue to support first-time buyers. Wage rises are starting to look healthier, while the cost of living remains low, meaning household finances are starting to finally put on some muscle. The threat of mansion tax has lifted, and several housebuilding initiatives are underway. Any remaining caution left from the run up to the election is dissipating, and lenders are optimistic that the summer will see the market stretch its legs and get into its stride.’[3

[1] http://www.propertyreporter.co.uk/finance/may-lending-remained-st4ble.html