Posts with tag: affordable homes

Scotland Commits to Delivering at least 50,000 Affordable Homes in this Parliament

Published On: September 6, 2017 at 9:12 am

Tags: affordable homes,housebuilding,housing crisis,Scotland

In its Programme for Scotland 2017-18, the Scottish government has committed to delivering at least 50,000 affordable homes over the lifetime of the current Parliament.

Scotland Commits to Delivering at least 50,000 Affordable Homes in this Parliament

The document insists that 35,000 of these homes will be for social rent. More than £1.75 billion is being allocated to councils over the next three years, to help deliver the government’s ambitious target.

In this financial year, the Scottish government is also committing over £590m to increase the supply of affordable homes across Scotland, through its pledges to local authorities and demand-led national schemes, such as the Open Market Shared Equity scheme and the Rural and Islands Housing Fund.

A budget increase of over £100m in 2016-17 has led to more than 10,000 new housing units being approved in the first year of the target period – a record-breaking level, notes the report.

The Scottish government will also support up to 3,500 households this financial year into affordable homeownership, including approximately 2,500 first time buyers, with assistance from its Help to Buy and other shared equity schemes. The total investment for these schemes in this financial year is £135m.

Scotland’s Rental Income Guarantee Scheme, which will launch this year, seeks to attract new institutional investment to the country, by sharing a limited proportion of the letting risk with participating members. Potential investment in the emerging Build to Rent sector in Scotland is estimated to be in the region of £500m over the next five years, which will support 2,500 new homes.

The government adds that the Scottish Empty Homes Partnership has brought over 2,400 homes back into use to date. It pledged to double its funding, helping local authorities to provide and sustain empty homes officer support in every part of Scotland.

Regarding the ways in which Scotland delivers homes, the government vowed to support the increased delivery of self-build and custom-build homes, and expand the options available and provide more flexibility for both individual homeowners and the construction industry. This will include Simplified Planning Zones for housing, in recognition of the significant opportunities for the self-build and custom-build sectors.

For more details of the Scottish government’s plans surrounding reform of the planning system, homelessness, Land and Buildings Transaction Tax, high-rise housing following the Grenfell Tower fire, and energy efficiency in the private rental sector, click here: http://www.gov.scot/Publications/2017/09/8468/10

Responding to the plans, the Strategic Development Manager for Propertymark Scotland, Daryl Mcintosh, says: “We welcome the Scottish government’s commitment to increasing housing stock in Scotland; improving the quality and supply of affordable homes remains a key factor which impacts so many people across the country.

“In principle, we support introducing energy efficiency standards for the private rented sector, however, we caution the government to make sure it doesn’t take a one-size-fits-all approach, as those with rural homes in particular may struggle to meet minimum standards.”

LendInvest Finances 66 Affordable Homes in Key Crossrail Town

Published On: May 12, 2017 at 9:23 am

Author: Em Morley

Categories: Property News

Tags: affordable homes,Affordable housing,Crossrail,property development

LendInvest, a leading specialist mortgage lender, has completed its largest development finance deal to date with an experienced borrower, who will build 66 new affordable homes in West Drayton, Hillingdon, a town set to benefit from a Crossrail station in 2019.

LendInvest Finances 66 Affordable Homes in Key Crossrail Town

LendInvest has been working with the borrower since June 2016, when it provided a bridging loan to acquire the site, while the client applied for enhanced planning for 53 new homes. The borrower then transitioned to a £17m development loan to finance the construction.

As construction began, LendInvest lent a further £4m to the borrower to acquire a neighbouring site that became available, on which he will build 13 new homes.

The total loan provision for both sites is £21m, with the total gross development value forecast to exceed £31m.

The development is due to complete by autumn 2018, at which point all 26 three and four-bedroom houses and 40 apartments across the two sites will be sold at affordable values, meaning that they will be priced to qualify for the Government’s Help to Buy scheme.

The Owner of Kearns Property Management and Development Ltd, Peter Kearns, comments on the plans: “LendInvest has been a fantastic partner to work with since the beginning of this development. Its flexible approach allowed us to finance the development through from pre-planning to enhanced planning. The team has been brilliant and, more importantly, they are always on hand to help every step of the way.”

Steve Larkin, the Director of Development Finance at LendInvest, adds: “Our role is to ensure we are offering both the products and the service that provides our developers with the funding and support they need at each touch point of their journey. From planning to completion, we know that working closely with a borrower and understanding their end vision is the best way to do this.

“Being able to back such a large development of affordable housing in a prime location is a great feeling. It counts massively towards our overarching goal of tackling the housing crisis in Britain.”

Just Four London Boroughs Offer Average House Prices Below £400,000

Published On: January 10, 2017 at 10:18 am

Author: Em Morley

Categories: Property News

Tags: affordable homes,house prices,London,London property market

Just four London boroughs offer an average house price below £400,000, according to recent statistics from Rightmove. The property portal found that east London’s Barking and Dagenham, Bexley, Newham and Havering are the only parts of the capital where the average home sells for less than £400,000.

Just Four London Boroughs Offer Average House Prices Below £400,000

However, rising demand in these London boroughs is leading to rapid house price growth. If you’re a landlord looking to purchase a buy-to-let property this year, get in there quick before prices become out of reach.

Havering has enjoyed the greatest annual increase over the past year, with the average house price soaring by over £40,000 to an average of £392,000 – more than £200,000 cheaper than the London average of £616,000. Landlords will be pleased to learn that a new Crossrail station is promised in the main town of Romford by the end of 2018, which is likely to push prices up once more, ensuring strong capital growth.

Rightmove’s House Price Index for December shows that priced out buyers are widening their search in a bid to find a bargain, with increased demand pushing prices up on outer edges of the capital. Tenants will also be seeking lower rent prices in outer London boroughs, which is yet more of an incentive for landlords to snap up properties in these locations.

Meanwhile, sharp drops in house prices continue to affect the prime London market. Camden in the north suffered the greatest annual decline, of almost 18%, with the average house price now standing at £994,000. Prices also fell by more than 5.5% in west London’s Hammersmith & Fulham, Wandsworth and Kingston. Properties in these boroughs now sell for an average of £1.03m, £757,000 and £598,000 respectively.

Landlords with properties in the upmarket Kensington and Chelsea will be disappointed to learn that house prices dropped by nearly 15% over the year, taking the average value to £2.13m.

Increasing demand for boroughs beyond Zone 2 is a result of the growing affordability gap caused by years of house prices rising faster than wages, claims Rightmove.

The portal’s co-founder, Miles Shipside, comments: “London’s desperate need for affordable housing has moved to outer London, and we forecast that will lead to further modest price growth in 2017.”

If you’re seeking to avoid the stagnation seen in London’s property market over the past year, caused by Brexit uncertainty and Stamp Duty changes, look to these four boroughs for lower prices, high tenant demand and potential for strong capital growth.

First Wave of Starter Homes to be Built This Year, Says Housing Minister

Published On: January 4, 2017 at 12:24 pm

Author: Em Morley

Categories: Property News

Tags: affordable homes,first time buyers,housing crisis,starter homes

The first wave of the Government’s Starter Homes for first time buyers will be built this year, reports the Housing Minister, Gavin Barwell.

However, the pledge has run into immediate controversy over the prices of the Starter Homes and lack of rental properties on the sites.

Barwell promised that the first wave of the discounted homes on brownfield sites will be built this year in 30 local authority areas in England.

Labour and homelessness charity Shelter have insisted that it’s nonsense to describe the homes as “affordable”, as some will cost up to £450,000 each.

Furthermore, Barwell was unable to confirm how many Starter Homes will be built this year, making the original target of 200,000 by 2020 impossible, according to Labour.

Ministers had suggested that, under Theresa May’s leadership, the Government would refocus the Starter Homes scheme to include some properties to rent, as well as to buy.

The properties to be built this year will be made available exclusively to first time buyers aged between 23-40, at a discount of at least 20% below market value. A cap of £250,000 outside London and £450,000 within the capital will be put in place.

Yet, perhaps more controversially, the Starter Homes will count towards the Government’s wider target to build 400,000 new affordable homes.

First Wave of Starter Homes to be Built This Year, Says Housing Minister

Barwell insists: “This Government is committed to building Starter Homes to help young first time buyers get on the housing ladder.

“This first wave of partnerships shows the strong local interest to build thousands of Starter Homes on hundreds of brownfield sites in the coming years. One in three councils has expressed an interest to work with us so far.”

The first 30 local authorities have been selected because they have the ability to build the homes quickly, under a £1.2 billion Starter Homes Land Fund.

However, the housing spokesperson for Labour, John Healey, believes: “These so-called Starter Homes are a symbol of the Conservative record on housing.

“Ministers launched them in 2014, but will only start to build the first in 2017, promised they’d be affordable for young people when they’ll cost up to £450,000, and pledged to build 200,000 by 2020, but no one now believes that’s possible.”

And Roger Harding, the Director of Communications at Shelter, adds: “Efforts to build more homes are welcome, but these Starter Homes are only likely to benefit people who are better off and already close to buying.

“The Government recently signalled that it wanted affordable to start to actually mean affordable when it comes to building homes. We would urge them to keep to this, rather than continuing with Starter Homes, which have been shown not to work.”

The Managing Director of the National Association of Estate Agents, Mark Hayward, has mixed feelings: “Today’s announcement may feel like a welcome start to the New Year, but, as always, we need to see these plans put into swift action. The dream of homeownership is too far out of reach for thousands of aspiring first time buyers, and the building of new homes on disused brownfield sites, as well as a 20% discount for buyers aged 23-40, will go some way to bridging this gap.

“News that the Government will deliver 14 new garden towns and villages outside of existing settlements will also relieve some of the pressure on supply and demand, which should in turn act as a catalyst to help first time buyers fulfil their dreams of homeownership. However, we must not throw caution to the wind.”

He explains: “The Government has made promise after promise, and pledge after pledge to help first time buyers get onto the housing ladder, but until we see these houses built, we won’t hold our breath.”

The Government claims that the new developments will support wider growth and regeneration, including in some town centres.

The first areas will begin construction later this year, along with sites supported by the Homes and Communities Agency.

The Local Government Association has called for councils to be given discretion on building Starter Homes, to ensure enough properties to both buy and rent are available in each development.

Government Still Doesn’t Understand the UK Property Market, Insists Expert

Published On: November 25, 2016 at 9:37 am

Author: Em Morley

Categories: Property News

Tags: affordable homes,Autumn Statement,letting agent fees,property market

Following Wednesday’s Autumn Statement, delivered by the new Chancellor, Philip Hammond, many experts in the housing, buy-to-let and financial sectors have spoken out about its effects on the UK property market.

But one sentiment seems to stand out more than any other: The Government still doesn’t really understand the UK property market.

Government Still Doesn’t Understand the UK Property Market, Insists Expert

While some believe that the Government has delivered yet more empty promises on housebuilding, others claim that the letting agent fee ban will force landlords out of the sector and raise rents, causing yet more difficulty for tenants.

Some believe that Hammond was wrong to leave further Stamp Duty reform out of the Autumn Statement, while others, predominantly tenant groups, have welcomed the lettings fee ban.

And the Managing Director of Nova Financial, Paul Mahoney, agrees that the ban may not be as detrimental as expected: “Some have viewed this as a negative, however, I believe it is a storm in a teacup. The fees aren’t generally exorbitant and it should encourage letting agents to be more efficient in the way they structure their revenue, as opposed to hitting tenants with fees they often can’t afford.”

He also claims that any expectation of a U-turn in the mortgage interest tax relief changes was “always a long shot”.

However, he adds: “The raising of the no tax threshold to £11,500 and the higher rate tax threshold to £50,000 will benefit mum and dad investors, who can split their rental income.”

But in terms of boosting the UK property market, was it all bad news?

Mark Lawrinson, the Regional Sales Director of Portico estate agent, explains: “The announcement of additional funding for affordable housing across the UK and new homes in areas ‘of high demand’ is good news for the housing market.

“The planned budget of £2.3 billion on infrastructure surrounding these homes is also a sensible move, but I cannot help but feel the Government still doesn’t truly understand the property market in the UK.”

He goes on: “The schemes the Government launch are typically geared toward the first time buyer, yet what we really need is a way of helping the second steppers move up the property ladder, which would stimulate the market, but also increase stock for first time buyers.

“If we found a way to encourage property owners to move, we would create both greater demand and greater supply. Ultimately, we need to enable the entire market to turn over – and as much as first time buyers are an important part of that, we can’t forever build starter homes. People need to move into bigger houses and different areas as their lives change, so the natural movement of the market needs re-establishing.”

He adds: “Further focus is also required on the red tape and processes surrounding building, and I believe this should be streamlined under one governing body, rather than individual local authorities. This holds up the development of sites through the amount of planning applications required, and more needs to be done on allowing sites – including brownfield sites – to be freed up for development.”

Has the Government Delivered Yet More Empty Promises on Housebuilding?

Published On: November 24, 2016 at 10:21 am

Author: Em Morley

Categories: Property News

Tags: affordable homes,Autumn Statement,housebuilding,housing crisis

In his first Autumn Statement yesterday, Chancellor Philip Hammond went some way to ensuring the property market works for everyone by announcing measures to boost housebuilding. But has the Government delivered yet more empty promises?

Has the Government Delivered Yet More Empty Promises on Housebuilding?

Ahead of the address yesterday, the Managing Director of the National Association of Estate Agents (NAEA), Mark Hayward, welcomed the plans for a £1.4 billion funding injection for housebuilding. He also praised the relaxation of how existing affordable housing funding can be used, believing this would help to diversify the country’s housing mix, creating the homes that people want and need.

“However, the creation of 40,000 new homes that this new funding is expected to deliver is still painfully short of the number of affordable homes we need to solve the housing crisis and get first time buyers on the housing ladder,” Hayward expressed ahead of the Autumn Statement.

He continued: “We hope that the Government will announce an intent to do much more when it releases a widely expected White Paper at the Autumn Statement. It is vital that the Government uses this to signal a radical rethink in its housing strategy and consider measures such as building homes on unused greenbelt land to really kickstart the housebuilding boom we badly need.”

So did the Chancellor deliver on his pledge, or has the Government simply offered yet more empty promises when it comes to housebuilding?

Speaking after the Autumn Statement, Hayward said: “The measures announced during the Autumn Statement today to boost housebuilding go some way to making the housing market work for everyone, but, quite frankly, do not go far enough.

“The Housing Instructure Fund, as well as the fund to build 90,000 affordable homes in London will act as catalysts to start closing the gap between supply and growing demand, but what we really need to see now is properties being built quickly.

“The Government has a long-standing history of announcing numerous housebuilding pledges, but in the last few years, we’ve not seen a sufficient impact on supply to make a dent in providing the affordable homes we really need.”

He holds on to hope: “The detail in the Housing White Paper will be crucial – let’s hope there are far more detailed plans in there when it is released.”

We will continue to keep you updated on the Government’s housebuilding plans at LandlordNews.co.uk.