Posts with tag: Affordable housing

£500 a Month for Mattress Inside Hut in Living Room

Published On: September 4, 2015 at 11:41 am

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Flat and house share website SpareRoom.co.uk has admitted that its rules were breached when it advertised a £530 per month large double room, which was actually a mattress inside a wooden hut in the corner of a communal living room.

Joe Peduzzi, 22, was looking for somewhere to live after getting a job in London.

He saw the SpareRoom advertisement, but was taken aback when he discovered that the large double room was in fact just a mattress inside a wooden shack in the living room.

The room was advertised at £480 a month for rent and £50 towards the bills, which are split with three other housemates.

The advert, which has since been removed, read: “The room is the biggest in the house and comes with a sofa, which means sharing it with the rest of us sometimes.

“We are on the search for a laid back, happy-go-lucky type that’s sociable, open-minded and creative.”1

SpareRoom admitted that its guidelines have been breached by the advert, but it did not say why the ad made it through to the site.

Director of the firm, Matt Hutchinson, says: “This particular ad does breach our rules, as there is a clear invasion of privacy.

“While we do moderate for scams and spam, there’s not much we can do to protect against people being misleading in their advertisements. This is why we rely on our users’ vigilance as the final piece in the protection we provide.”

He insists that SpareRoom has a team of moderators, but also relies on the honesty of advertisers and on users to report “inappropriate” adverts.

Hutchinson continues: “All ads must be in line with our terms and conditions. We take steps to scan adverts that are posted to our site for spam and scams. This is done by both automatic systems and manually by our team of moderators.

“We also have a report ad function for users to flag ads they think are inappropriate with a click of a button, so our moderators can look into them.”1 

Fortunately, Peduzzi got a laugh out of it: “I was laughing to myself down the road back to the Tube.”1

1 http://www.propertyindustryeye.com/530-a-month-for-mattress-inside-shack-inside-communal-living-room/

Top areas for academic and property balance

Published On: August 19, 2015 at 4:09 pm

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New research has collated the top 50 schools within England that offer the best balance between affordable housing and top quality state education. The findings suggest that three of the top-ten are in Birmingham.

Academically pleasing

Data from the report by eMoov compared the average house prices in the surrounding area of a school, to the average GCSE score per pupil.

Coming in with top-marks was the King Edward VI Handsworth School in England’s second city, with an average GCSE score of 588.9 per pupil backed up with average house prices of £107,305. This results in a property value of £182 for each GCSE point achieved.[1]

Two other schools from Birmingham also made it into the top-ten: The King Edward VI Five Ways School (3rd) and King Edward VI Camp Hill School for Girls (5th).

The full top-ten list is:

1st) King Edward VI Handsworth School, Birmingham

2nd) Blue Coat School, Liverpool

3rd) King Edward VI Five Ways School, Birmingham

4th) Devenport High School for Girls, Plymouth

5th) King Edward VI Camp Hill School for Girls, Birmingham

6th) Lancaster Girls’ Grammar School, Lancaster

7th) Lawrence Sheriff School, Rugby

8th) Crossley Heath School, Halifax

9th) Upton Hall School, Wirral

10th) Southend High School for Girls, Southend[1]

Top areas for academic and property balance

Top areas for academic and property balance

Moves

In addition, eMoov conducted another survey of 1,000 homeowners with children. Results from the report show that 22% of British homeowners moved closer to the preferred school for their child in order to secure them a place. 14% purchased property years in advance of their child starting school, purely because it was in their catchment area.[1]

10% of homeowners said they think about moving home to give their children a better chance of gaining entry into their ideal school. Another 10% said they had downsized to move into their desired catchment area.[1]

However, just 27% of those surveyed revealed that they had studied the school league tables before choosing their child’s school. This suggests that reputation and world of mouth are hugely prevalent in making this decision.

Hand in hand

‘Property and schooling go hand in hand,’ said Russell Quirk, founder and CEO of eMoov.co.uk. ‘Our research shows securing a place at your desired school by moving to its catchment area, is a driving factor for many.’ Quirk believes that, ‘it is one of the major life stages where property is concerned, first we get a foot on the ladder, then we climb a rung or two to start a family, then we turn our attention to educating our children.’[1]

Mr Quirk went on to say, ‘Unfortunately we aren’t all in the desirable position whereby we can wave our children off to a prestigious private school. This latest eMoov study identifies the top performing schools in the country where property in the surrounding area is relatively affordable.’[1]

[1] http://www.propertyreporter.co.uk/property/birmingham-offers-the-best-balance-of-affordable-property-and-top-schools.html

 

London House Prices Surge 43% Since Recession

Published On: August 19, 2015 at 4:00 pm

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London House Prices Surge 43% Since Recession

London House Prices Surge 43% Since Recession

House prices in London have soared by 43% since the pre-financial crisis peak in 2008.

The average price of a property in the capital rose by 5.3% in the past year, to £513,000, says the Office for National Statistics (ONS). The average price across the UK increased by 5.7% to £277,000 over the same period.

Shelter’s Roger Harding says that prices were up £12,000 nationally from this time last year and urges the Government to build more affordable homes.

He believes a further price rise “means for an entire generation, a home of their own is nothing but a pipe dream.”1

Richard Snook, Economist at PricewaterhouseCoopers, warns that by 2025, there will be more private renters than those owning a home with a mortgage.

Housing Minister Brandon Lewis claims that the Government has delivered over 260,000 affordable homes in the last five years. He adds: “This is real progress, but we know there is more to do.”1 

1 Binns, D. (2015) ‘House prices soar 43% since crunch’, Metro, 19 August, p.7

 

 

 

 

 

 

 

 

Britain Needs More Slums, Says Oxford Student

Published On: August 7, 2015 at 3:59 pm

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An Oxford student has faced criticism after saying the answer to the housing crisis is to build more slums.

Libertarian think-tank, the Adam Smith Institute, has defended the student’s proposals for favela-style homes after he was sent death threats on social media.

In a blog on the Adam Smith Institute’s website, Theo Clifford, a Philosophy, Politics and Economics student at Merton College, Oxford, suggested abolishing safety regulations to introduce slums in the UK for those who cannot afford a home.

Clifford, who describes himself as a “recovering Lib Dem” who hopes to become a “yuppie”, wrote: “Sweeping deregulation is the only way to provide Britain with the slums it is crying out for.”

Clifford won the Institute’s Young Writer on Liberty competition in the 18-21 age group.

He continued: “Britain has a sore lack of property slums. Government regulations designed to clamp down on cowboy landlords restrict people’s ability to choose the kind of accommodation in which they want to live.”

Clifford argues that communal living is appealing to young people, as he too is struggling to get onto the property ladder.

Britain Needs More Slums, Says Oxford Student

Britain Needs More Slums, Says Oxford Student

He added: “Housing should cater to a wide array of preferences. Some people might not feel like they need a bedroom space as large as the state expects, while others might not mind sharing a bathroom with another family if it means lower rents.”

He claimed that over-regulation is the cause of the housing crisis: “The market desperately wants to provide houses people can live in at prices they can afford – but in the eyes of local authorities, these houses are too small, or too tall, or the ceilings are too low, or the windows not energy efficient enough.”

After the piece was posted online, Clifford received a stream of online abuse. One critic tweeted Clifford, calling him a “wet behind the ears libertarian who’s never laid in bed listening to rats scuttling about his kitchen.”1 

Another exclaimed: “’Britain needs more assassinations of @Theo_Clifford’ is about as offensive as this blog.”1

A housing law solicitor told Clifford he is “but a child & yet to learn to distinguish immediate self interest from general social benefit.”1

Clifford replied to one opponent: “A cramped flat you can afford is better than the sprawling detached house you can’t.”

He then asked: “Wonder if my proposal for a #NationalNetflix is going to get me as many death threats as yesterday’s housing essay.”

However, he was defended by the Institute’s Deputy Director, Sam Bowman, who said: “People should attack us, not him. We can take it. Theo is making the point that disadvantaged people who are price-sensitive might prefer an energy efficient house or one with a small bedroom than none at all.”

Bowman continued: “The word slum is quite emotive. But it is what people would call these dwellings if they were allowed. Theo is asking people to think past what the word slum means to us and ask if our minimum building standards are too restrictive?”

Bowman described Clifford as “an extremely smart, reasonable and pleasant chap” who “is destined for great things.”1 

Clifford did not receive support from the South East London branch of anti-austerity group, the People’s Assembly, which tweeted: “No, Theo, the country doesn’t need more slums, but yes maybe less building regulation, something rad needed to kickstart supply.”1

The Adam Smith Institute helped with the intellectual foundation of Margaret Thatcher’s Conservative governments and promotes free market thinking.

Clifford has previous blogged on the Liberal Democrat Voice website, where he called for deregulation of Sunday trading laws – now Government policy – and defined Lib Dem economic policy as a “belief in the strength of the free market to provide long-run economic growth.”1

1 http://www.independent.co.uk/news/uk/home-news/britain-needs-more-slums-thinktank-forced-to-defend-blog-proposing-favelastyle-dwellings-in-the-uk-10444002.html

Affordable housing schemes impact revealed

Published On: July 27, 2015 at 12:24 pm

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New research indicates that the average price paid for homes by buyers using affordable housing schemes in the UK has reached nearly £190,000.

A report from the Halifax indicates the total average price of £189,786 is just 4% less than the £197,535 average total for house purchases as a whole.[1]

Regional rates

By region, the highest average price paid by buyers utilising affordable housing schemes was unsurprisingly in London, at £323,148 with the lowest being in the North of England, totalling £147,437. However, the average value of a London home sold via a scheme was found to be 33% lower than the average price of £482,579.[1]

First time buyers were found to be the biggest benefiters of the Help to Buy scheme, which accounted for 80% of sales over the previous year. This was in comparison to 46% of all mortgage financed home purchases made by first time buyers over the same period. What’s more, improving economic conditions and better market certainty has led to the largest number of first time buyer home purchases for seven years.[1]

Affordable housing schemes impact revealed

Affordable housing schemes impact revealed

First time buyers

The latest official data shows that Help to Buy equity loans and mortgage guarantee initiatives have assisted 99,601 buyers to purchase homes since the introduction of Help to Buy in 2013. First time buyers completed 79,680 of these sales.[1]

On average, the price paid by first time buyers using the scheme was found to be £150,361, 10% lower than the average price paid by first time buyers for all housing, which totals £167,093. In London, first time buyers benefit hugely from the scheme, paying on average a price 36% lower than the average value paid by first time buyers that are not using any of these initiatives.[1]

‘Many of the affordable home ownership schemes available have been designed specifically to help first time buyers get on the ladder and support construction of new build homes and the latest official figures show this has been successful, ‘observed Craig McKinlay, mortgages director at the Halifax.[1]

‘As the economy continues to recover and mortgage interest rates remain at very low levels, we expect to see continued growth in first time buyers during the second half of the year,’ he added.[1]

[1] http://www.propertywire.com/news/europe/uk-affordable-homes-research-2015072710791.html

 

 

Right to Buy Extension Will Hit Affordable Housing

Published On: July 24, 2015 at 12:57 pm

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Rural housing campaigners believe that the Government’s plan to extend the Right to Buy scheme to housing association tenants could destroy the delivery of affordable housing.

The Government is proposing allowing housing association tenants in England to buy their homes at a discount.

However, rural housing groups have criticised the plans, saying they will further limit the supply of affordable homes.

The Government insists it is listening to these concerns and details of the scheme are expected in autumn this year.

Farmer Michael Eavis, who is the founder of the Glastonbury Festival, says the plans are “absolutely dreadful.”

Over the past two decades, Eavis donated several acres of land to allow a housing association to build 22 affordable homes, close to the festival’s site in the village of Pilton, Somerset.

“It would be absolutely fatal for this village,” he believes. “They’d be sold off in no time, so they’d go to people who come in from outside.”

Right to Buy Extension Will Hit Affordable Housing

Right to Buy Extension Will Hit Affordable Housing

Additionally, Eavis says he won’t donate any more land if Right to Buy is extended in villages like Pilton: “It defeats the whole object of the exercise, which is to provide low cost housing to local people.”1 

Extending the scheme was one of the key points of the Conservatives’ housing plans.

The scheme would allow tenants to buy their housing association homes at a discount and would be financed by councils being forced to sell off their high value assets when they become vacant. The Government states that every house sold will be replaced.

Social housing accounts for just 12% of rural property stock, according to the Rural Policy Housing Review. This is 7% less than in urban areas.

The average rural house price is 26% higher than an urban home, due to competition from commuters, retirees and second-homeowners, revealed a study by the Halifax in November 2014.

Often, housing associations rely on local farmers donating or selling land below market rates, to build homes.

A farmer in Saham Toney, Norfolk, Ed Buscall, was approached by Hastoe Housing Association and the local parish council a number of years ago.

He says: “They came to me and said the village school was under threat and that locals were finding it increasingly difficult to find houses here because of people retiring from London and pushing up prices.”

Toney sold the land cheaply and Hastoe built eight homes. However, similarly to Eavis, he won’t do it again if the Government’s plans are realised.

He adds: “I wouldn’t have sold the piece of land if I knew that in a few years time people could just sell it on to anybody.”1 

Sarah Green, her husband and two children, now occupy one of the homes built on Buscall’s land. Sarah is a teaching assistant at the local school and couldn’t afford to buy a property in the village.

Sarah is the type of tenant that the Right to Buy extension is aimed at. But she is not interested: “I don’t think it’s my right to have one of these houses. Where is everyone else going to go? And the younger generations coming into the village? Well, they won’t be able to will they, as there won’t be any homes like this.”1 

About 465,000 council homes have been sold in rural England since Right to Buy was introduced for council housing tenants in the 1980s, says the National Housing Federation (NHF).

Furthermore, some stock has been transferred to housing associations, meaning that 65% of rural local authorities do not own any homes.

Campaigners are worried about who will compensate rural housing associations that must sell their homes.

The Government says that it is still consulting on this, but the Housing Minister, Brandon Lewis, suggests that urban councils will help fund rural sales.

He says: “The Government will fund that discount using high value sales. Central Government will ensure that housing associations are able to do 1:1 funding.

“We will make sure we support the discounts that housing associations will give, ensuring people can buy a home of their own. We will outline the details when we publish the housing bill in the autumn.”1

The smallest rural areas in the country are already exempt from the existing Right to Buy scheme and the Government plans to continue with these restrictions.

1 http://www.bbc.co.uk/news/business-33641869