Posts with tag: housing crisis

‘Distasteful’ London Holiday Lets Ad Sparks Petition to Sadiq Khan

Published On: May 31, 2019 at 9:04 am

Author:

Categories: Lettings News

Tags: ,

A ban on adverts encouraging landlords to move from providing long-term homes to tenants to Airbnb-style lettings has been called for in London.

Over 8,000 Londoners have appealed to Sadiq Khan, asking for changes to be made.

A petition was started by Generation Rent, the national campaign for private renters, on the 38 Degrees website. This movement has come after Hostmaker, a property management company, paid for adverts across the Transport for London (TfL) network, suggesting that landlords can earn 30% more by switching to holiday lets.

In response, Generation Rent supporters gathered yesterday at Bond Street Station entrance, to protest. They took their own advert on to the TfL network and one protester put on a pigeon mask, to represent the Hostmaker mascot, whilst another acted out shooing them away.

This petition fights back against the tube advertisement, described by Generation Rent as ‘distasteful’, for undermining the Mayor of London’s efforts to make affordable housing available in London.

Support has been gained from London politicians including Karen Buck MP and Assembly members Sian Berry and Tom Copley.

Generation Rent Campaigner Georgie Laming commented: “These tube ads are feeding a narrative that tenants are disposable, and profiteering from property is more important than providing long term homes. They are encouraging landlords to take homes off the market and turn them into hotels that will be often left empty, contributing nothing to the local community.

“If Sadiq Khan is truly committed to making housing affordable in London then he needs to ban ads like these. Unregulated holiday lets are driving up rents and preventing tenants from making a house a home.”

Megan Bentall, Campaigns Manager at 38 Degrees also commented: “Short term lets are spreading across London, pushing up the costs of rent and forcing people out of the communities they’ve always lived in. So these ads are in pretty poor taste.

“That’s why 8,000 people across London are calling for Sadiq Khan to step up and block these ads from Transport for London spaces. The public want politicians to work to fix the housing crisis – not allow companies to run dodgy ads that will make it worse.”

Update: Comment from Hostmaker

Nakul Sharma, Hostmaker CEO, has since commented on their ad compaign, stating: “We are sorry for the concern caused by our recent ad campaign and we acknowledge the tone was misguided. The adverts will be coming down this weekend and we will be reviewing all future creatives with our partners. 

“In a cosmopolitan city like London, there is a need for a range of housing and rental solutions to meet the needs of the wide variety of residents and visitors in our capital city. Whilst it’s critical that there is plenty of affordable housing stock available, our portfolio is made up of premium homes in zone 1&2 postcodes and does not take affordable housing stock away from the market.  We are here to meet the needs of Londoners and visitors to the capital who would prefer to stay in a high quality, furnished and managed home service. We provide a flexible lettings model to homeowners of these type of properties; blending long-term, mid-term and short-term rentals to suit market demands and help homeowners weather the current slump in rent prices and property sales, ensuring they aren’t left with gaps in the year when their property is standing empty.”

Housebuilding is Moving in the Right Direction, but Not Fast Enough

Published On: May 28, 2019 at 10:00 am

Author:

Categories: Property News

Tags: ,

Construction industry impacted by cost of living crisis, inflation, and supply chain issues

Housebuilding across the UK is moving in the right direction, but is not fast enough to keep up with demand, according to the latest Dwelling Stock Estimates from the Ministry for Housing, Communities and Local Government (MHCLG).

In its most recent report, covering up to 31st March 2018, the Government department found that there were 24.2m homes in England – an increase of 222,000 dwellings (0.93%) on the same point of the previous year.

Of these, 15.3m were owner-occupied, 4.8m were private rental, while 4.0m were social and affordable rental homes.

Between March 2017 and March 2018, the owner-occupied dwelling stock increased by 226,000, while the number of private rental homes increased by 10,000. 

The amount of homes in the social and affordable rental sectors dropped by 1,000, with other public sector stock down by 13,000 dwellings.

On 1st October 2018, 634,453 vacant dwellings were recorded in England – up by 28,562 (4.7%) from 605,891 on 2nd October 2017. Empty homes account for 2.6% of all housing stock.

Long-term vacant dwellings numbered 216,186 on 1st October 2018 – an increase of 10,893 (5.3%) from 205,293 on 2nd October 2017. Long-term empty homes make up 0.9% of all housing stock.

Joseph Daniels, the Founder of modular developer Project Etopia, comments on the report: “This ten-year high for the creation of new homes in percentage terms is a welcome milestone, appearing as it does in the long shadow of ambitious housebuilding pledges set out by the Government at the last election.

“That manifesto commitment equated to nearly 200,000 new homes a year, though there remains a question mark over whether the Tory pledge related to the building of new homes or just the delivery of new stock, which can include the creation of new homes through other means including change of use.”

He continues: “However, even if the Government was to argue all additional dwellings count towards the manifesto commitment, the rate of progress is still too sluggish to render its commitment for a further 500,000 homes by 2022 a safe bet.

“The country is moving in the right direction, just not quickly enough, so it may take further incentives or policy changes to inject a bit of urgency into the growth in these figures.”

RLA Warns of Rental Housing Crisis, as Landlords Sell Up

Published On: May 2, 2019 at 9:00 am

Author:

Categories: Property News

Tags: ,

The Residential Landlords Association (RLA) is warning of a rental housing crisis, as a quarter of private landlords are looking to sell at least one property over the next year.

Of almost 2,500 landlords who responded to the latest RLA survey, just over 25% said that they were planning to sell at least one property over the next year – the highest proportion since the organisation began asking this question regularly in 2016.

The same study shows that 23% of landlords reported an increase in demand for rental housing over the previous three months, while 57% described it as stable.

However, more than a third of landlords reported low levels of confidence in the private rental sector over the next 12 months.

The results arrive following the publication of Government data earlier this year, which found that 10% of private landlords (representing 18% of tenancies) plan to decrease the number of properties they let, while 5% of landlords (representing 5% of tenancies) plan to sell all of their properties.

The Royal Institution of Chartered Surveyors has warned that the imbalance between supply and demand of rental housing is expected to see rent price growth average 3% per year over the next five years.

Amidst the rental housing supply crisis that tenants now face, the RLA argues that it is vital that landlords retain confidence to provide the homes to rent that are desperately needed. This means ensuring that new regulations, governing how landlords can regain possession of their properties in legitimate circumstances, are fair and effective, both for landlords and tenants.

David Smith, the Policy Director of the RLA, says: “All the talk of longer tenancies will mean nothing if the homes to rent are not there in the first place.

“The Government’s tax increases on the sector are already making it difficult for tenants to find a place to live, with many landlords not renewing tenancies. If rushed and not thought through, planned changes to the way landlords can repossess properties risk making the situation even worse.”

He adds: “Action is needed to stimulate supply with pro-growth taxation and a process for repossessing homes that is fair to all.”

End Property Shortage in Scotland: Developers Call for Partnership with Councils

Published On: April 24, 2019 at 9:26 am

Author:

Categories: Property News

Tags: ,,

With the aim of solving property shortage issues in Scotland, developers have called for local councils to work more closely with them.

Springfield Properties and Tulloch Homes spoke at a recent event that discussed the future of build to rent.

Springfield Properties chairman Sandy Adam had said: “There is a need for more housing, as demand in Inverness and Moray continues to outstrip supply. Springfield Properties supports the use of technology to make the planning process more transparent, which, in turn, should make it more efficient.

“However, this needs to be part of a wider, more joined up approach to delivering more homes in The Highlands and Moray. We need closer collaboration between developers and local authorities that can help unlock challenging sites, such as those close to existing services and schools.”

As is currently stands, there are around 8000 people on the Highland Housing Register for people looking to find council social housing.

In 2016 a pledge was made by the Scottish Government to deliver 50,000 affordable homes by 2021.

Tulloch Homes chief executive George Fraser said: “The vibrant Highland economy has been created by the actions of both the public and private sector – and should be celebrated. 

“Tulloch Homes looks forward to playing its part in satisfying this demand, working closely with the Highland Council’s Planning Department.

“The Scottish Government has quite correctly stated everyone should have access to high quality, energy efficient homes and if the introduction of modern technology can play its part in making the planning process more efficient then this should be embraced by all stakeholders.”

Kevin Stewart, Minister for Local Government, Housing and Planning attended the event. He commented: “Making sure everyone has a safe, warm and affordable home is central to this Government’s drive for a fairer and more prosperous Scotland.

“Our target of 50,000 homes in this parliamentary term is backed by more than £3 billion – the single biggest investment in, and delivery of, affordable housing since devolution.

“We have already begun consultation in our work to create a sustainable approach to housing beyond 2021. We are preparing for further engagement later in 2019, which will be another valuable opportunity for the housebuilding sector to share their views with the Scottish Government.”

Mayor Pledges £200m to Protect Affordable Housebuilding through Brexit Uncertainty

Published On: April 4, 2019 at 8:00 am

Author:

Categories: Property News

Tags: ,,

The Mayor of London, Sadiq Khan, has pledged £200m to protect affordable housebuilding in the capital throughout the continued Brexit uncertainty.

The continuing Brexit negotiations are already affecting the housing market, with falling sales and uncertainty over house prices. This is having a knock-on effect on housing associations, which currently receive low levels of funding from the Government and, therefore, rely heavily on income from selling new market-price homes to help subsidise new affordable housebuilding.

Faced with a slowdown of new home sales, the Mayor will help housing associations, by offering extra funding to switch homes from market sale or shared ownership, to homes for rent at social or intermediate rent levels, which are lower than market rents. This extra funding will enable them to commit to their future plans, sign construction contracts and begin development without further delay.

Khan believes that the impact of Brexit uncertainty makes this extra funding essential, though he has warned that it will stretch City Hall’s affordable homes funding to its limit. The Mayor will explore all options for further funding, and is calling on the Government, at the very least, to match this funding, by providing extra investment for housing associations to deliver their planned schemes.

Khan says: “At City Hall, we are building record numbers of new social rented and other genuinely affordable homes. We must not let the Government’s chaotic mishandling of Brexit undermine our plans. That’s why it is right we push our funding to its very limits, to keep housing associations building more affordable housing through the ongoing uncertainty – and it’s even more important given the Government totally failed to address my concerns when I recently raised them. Whatever happens with Brexit, ministers must at the very least match my support, and ensure we can keep building the homes Londoners need over the coming years.”

The support received by individual housing associations will depend on the schemes and their pipeline, as well as those underway. Given the strains already on the Mayor’s affordable housebuilding budget, and the importance of targeting it effectively, this funding is only available for homes starting in this calendar year.

The Mayor’s investment comes after he wrote to the Secretary of State last month, along with Paul Hackett, the Chair of the G15 largest housing associations in London, and Councillor Darren Rodwell, the Executive Member for Housing and Planning at London Councils, outlining the immediate emergency support that would be required from the Government if the UK leaves the EU without a deal.

Helen Evans, the Chief Executive Officer of Network Homes and Vice-Chair of G15, comments: “The current market uncertainty limits our ability to generate cross-subsidy to reinvest in affordable homes, so this strong, positive action to address that is welcome. If enough additional funding is made available, we will be able to continue to commit to new developments and increase the levels of affordable homes we are building. We look forward to engaging with the GLA [Greater London Authority] to secure this.”

Chancellor’s Latest Housing Plans “Don’t Go Far Enough”

Published On: March 18, 2019 at 10:30 am

Author:

Categories: Law News

Tags: ,,

Last week (Wednesday 13th March), Chancellor Philip Hammond delivered the Spring Statement 2019, in which he announced his latest housing plans for the UK market. 

Despite Hammond’s claims that the Government is “determined to fix the broken housing market”, property expert Phil Spencer insists that the latest housing plans “do not go far enough”.

The Government reiterated that it is committed to building more homes in the right places, in order to unlock productivity growth and make housing more affordable. 

In the Autumn Budget 2017, it set out a comprehensive package of new policies to raise housing supply by the end of this Parliament to its highest level since 1970 – on track to reach an average of 300,000 per year. 

The latest housing plans contained within the Spring Statement set out further steps to deliver this ambition:

  • Through the Affordable Homes Guarantee Scheme, the Government will commit up to £3 billion of borrowing by housing associations in England to support delivery of around 30,000 affordable homes.
  • £717m from the £5.5 billion Housing Infrastructure Fund will unlock up to 37,000 homes at sites including Old Oak Common in London, the Oxford-Cambridge Arc and Cheshire.
  • Further progress was made on delivering growth in the Oxford-Cambridge Arc, including £445m from the Housing Infrastructure Fund to unlock over 22,000 homes, and a joint declaration with local partners, affirming the Government’s shared vision for the Arc.
  • £260m for the Borderlands Growth Deal, which, on top of the £102m announced recently for Carlisle from the Housing Infrastructure Fund, means up to £362m UK Government funding into the Borderlands area.
Chancellor’s Latest Housing Plans “Don’t Go Far Enough”

Spencer, who is the Co-Founder of Move iQ, reacts to the latest housing plans: “Any boon to Britain’s chronic housing shortage is, of course, not to be sniffed at — but the Chancellor’s plans simply do not go far enough.

“Britain needs a long-term, apolitical and impartial plan to build the homes we so desperately need, and not short-term sound bites to keep prospective voters happy.”

He believes: “Sorting out Britain’s housing crisis will not be a quick-fix; and certainly won’t be accomplished over any one Government’s time in power. 

“It’s time that housing experts were brought into the process of developing a strategic housebuilding plan — one that can’t be with tinkered with for the purpose of gaining votes every time a general election is on the horizon.”

The Managing Director of online letting agent MakeUrMove, Alexandra Morris, believes that there’s a wider issue to address: “We welcome the recognition that something needs to be done about the housing market, but it isn’t enough. Society is broken on many levels and housing is but one part of that.

“A strategic approach to infrastructure on a national level is absolutely required to help understand the requirements across the UK. The outcome would hopefully lead to tailored solutions regionally, which identifies the needs on a local level and goes further on the provision of resources to support local authorities in delivering what is needed to support their communities.”

She argues: “We need a higher target for the build of affordable and social housing. We also need to understand if existing schemes are actually delivering this. The build to rent sector is far too centralised, and the effect has been to push up inner city pricing across both sales and lettings. It hasn’t helped vulnerable people in need of quality housing get what they need.”

Morris adds: “Smaller landlords running good quality portfolios are in need of support. Encouragement to grow this sector should also be considered.”