Posts with tag: housing crisis

Thousands of London Homes Left Empty Despite Housing Crisis

Published On: February 22, 2016 at 4:53 pm

Author:

Categories: Property News

Tags: ,,,

Tens of thousands of London homes have been left empty for so long that they are classed as long-term vacant, despite a chronic housing crisis in the capital.

Data obtained by The Guardian found that more than 1,110 properties have been left uninhabited for over a decade.

More than 22,000 homes have been left empty for over six months, despite an extreme shortage of housing in the capital, according to figures from London boroughs in response to a Freedom of Information request.

Councils hoping to bring empty properties back into use have a variety of options, including charging an additional rate of Council Tax, helping homeowners will the cost of repairs and even compulsory purchase orders.

However, the data shows that a large number of properties have been left vacant for years rather than months, suggesting that councils have not been using their powers to ensure existing housing does not go to waste.

More than a third of the total number of empty homes (8,561) have been left vacant for over two years, with 1,151 uninhabited for more than ten years.

The Green Party candidate for the Mayor of London, Sian Berry, comments on the findings: “With homelessness rising to crisis proportions, it’s not right that so many properties should be sitting empty and for so long.

Thousands of London Homes Left Empty Despite Housing Crisis

Thousands of London Homes Left Empty Despite Housing Crisis

“The best way of bringing them back into use is via self-help housing groups – in many cases building a constructive relationship with the owner, who may well not have wanted the property to fall into disuse in the first place and will welcome efforts to put matters right.”1

The real number of empty homes may be even higher, as homeowners are not obliged to report that their property is empty to their local council and councils are not required to keep registers of vacant homes. Additionally, Council Tax databases do not include properties in such a state of disrepair that they are uninhabitable.

Also, just 31 of 33 London boroughs responded to the request – Bromley Council did not respond, while Westminster claimed it could not supply the dates that the properties became empty.

Since April 2013, councils have been able to impose an empty homes premium of an additional 50% Council Tax, discouraging homeowners from admitting that their properties are unoccupied.

Greater London has 3.4m homes, but this number is insufficient in housing the capital’s growing population. Some councils, however, are starting to take action against the buy to leave trend, which sees investors purchase homes with the intention of leaving them empty, in order to take advantage of London’s spiralling house prices.

Last year, Islington Council enforced planning laws aimed at banning owners of new homes from leaving their properties unoccupied for over three months, with a threat of legal action for those that flout the law.

Other reasons that homes become unoccupied include owners not knowing what to do with inherited property or lacking the funds needed to repair properties to a habitable state.

The Chief Executive of charity Empty Homes, Helen Williams, says: “With so many people priced out of decent housing across London, it makes sense to make the most of existing properties, as well as build new homes, to address the capital’s housing needs.

“The casework that councils do with property owners can be incredibly effective in ensuring that homes that have been stuck empty are brought back into use. At the same time, we would like to see more long-term empty properties across England bought by councils and charities to create new homes that are affordable to people on low to moderate incomes.”

However, she adds: “But questions remain as to how well Government-funded housing programmes will continue to support this work, now that dedicated empty homes programmes have come to an end.”1 

If you are a landlord with an empty rental property, remember that you can protect your asset with unoccupied property insurance, before your new tenants move in or while you are completing repair work.

1 http://www.theguardian.com/society/2016/feb/21/tens-thousands-london-homes-deemed-long-term-vacant

 

Even Conservative MPs Cannot Afford a Home

Published On: February 11, 2016 at 3:30 pm

Author:

Categories: Uncategorized

Tags: ,,,

A Conservative MP has spoken out about his struggles to buy a home after admitting to moving back in with his parents.

William Wragg, 28, earns £74,000 per year plus expenses as the MP for Hazel Grove. He is also entitled to House of Commons expenses to cover the cost of renting a second home in London, as well as office space.

Although he is, admittedly, “paid extremely well”, Wragg has been forced to move back in with his parents in the North West in order to save for a deposit.

Wragg earns over two and a half times the average national salary.

He explains his situation: “I am part of that boomerang generation. In a few years, hopefully I will have saved up enough for a deposit. I know exactly what it is like. I have complete empathy with people in that position.”1 

Many aspiring homebuyers are taking proactive steps to finally getting on the property ladder. Recently, we reported that since its launch on 1st December 2015, a Help to Buy ISA has been opened every 30 seconds by those needing some extra help in saving for the huge deposits required.

Additionally, we announced yesterday that a whopping 15,000 Londoners are looking to use the Help to Buy London scheme to help with purchasing a property. This level is unsurprising, with London’s average house price now £506,724.

The housing spokesperson for Labour, John Healey, comments on Wragg’s circumstances: “He is part of a generation for whom homeownership is in freefall. This is a generation of people who are often on good middle incomes but who still find the dream of homeownership is out of reach.

“A million more people became homeowners under Labour, but since 2010, the numbers have fallen by 200,000.”1 

It appears that more buyers are managing to get a foot on the ladder, however, as Marsh & Parsons reports a surge in first time buyer sales, up from 49% of all sales in December to 66% in January.

1 http://i100.independent.co.uk/article/even-74kyear-tory-mps-are-having-to-move-back-in-with-parents-to-save-up-for-a-house–WyM3qpeR6x?utm_source=indy&utm_medium=top5&utm_campaign=i100

Report Explains How to Overcome London’s Housing Crisis

Published On: February 8, 2016 at 3:19 pm

Author:

Categories: Property News

Tags: ,,

A new report, commissioned for the Mayor of London, has detailed plans of how to overcome the capital’s housing crisis.

The Growing London report states that by 2030, 1.5m more people – around the number that currently live in Birmingham – will be living in London, among the 8.5m residents the capital already has.

Growing London is the first in a series of reports, the Good Growth Agenda, written by the Mayor of London’s Design Advisory Group. It is examining what the capital will look like as it changes to accommodate a population of over 10m.

London has already surpassed a previous record of 8.61m residents back in 1939. However, in the 1930s, more than 500,000 homes were built on greenfield land. Now, the plan is to increase housing within London’s footprint.

Report Explains How to Overcome London's Housing Crisis

Report Explains How to Overcome London’s Housing Crisis

The report found that around 50,000 new homes must be built every year over a 20-year period in order to house almost 70,000 people in London, and the equivalent of more than eight Canary Wharfs to provide jobs.

One of Growing London’s key findings was the need to reconsider London’s overall density. This could lead to more tower blocks. It says that Londoners live at a density of 73 people per hectare, whereas 200 years ago, there were 297 – more than four times as many people in one hectare today. If London had the same density as it did in 1815, its footprint could accommodate around 35m people.

Density levels vary across the capital, with a high of 271 people per hectare. In comparison to other major cities, this is spacious; in New York City there are 585 people per hectare, and a huge 1,111 in Hong Kong.

Another method of measuring density is to count the number of units or dwellings per hectare. A tower block accommodates an average of 450 units per hectare.

The report found that while guidance suggests there should be a limit of 405 units per hectare, some developments in London have been planned for over 3,000 units per hectare. Growing London believes that more research should be conducted into high-density building.

At present, 263 buildings that are 20 storeys tall are in the pipeline for the capital.

Another of the report’s important findings was that local authorities have almost stopped building new homes, despite owning 40% of land that could be used for housing. In the mid-60s and 70s, councils built around three-quarters of all new homes. In 2014/15, councils built just 310 of the 26,843 new homes in London.

The report suggests that at least 154,000 homes could be built within existing town centres, which already have good transport links, shops and offices, with a potential of up to 218,000 new homes within ten years.

It also believes there is opportunity for building low-density housing in areas of outer London that have good transport links.

Acknowledging that the public must more involved in the planning process, Growing London says that information is often lost in translation when it comes to public consultations. It believes that a site notice and online planning database are inadequate in communicating the key characteristics of a planning application.

Do you believe the capital needs higher density housing, or are there alternatives?

The Redfern Review into UK housing launched

Published On: February 6, 2016 at 9:00 am

Author:

Categories: Uncategorized

Tags: ,,,,,

With home-ownership totals at their lowest for nearly three decades, the largest review into the housing market in recent times has been launched. The Redfern Review will investigate the key areas causing the crisis, such as housing supply, affordability for first-time buyers and planning and construction problems.

Assessment

Led by Pete Redfern, chief executive of house builder Taylor Wimpey, the review is being back by shadow housing minister John Healey MP.

Mr Redfern said that the review would be independent but still critical of policies and would take a long-term view of how to solve the situation.

Redfern said, ‘it’s not to knock party policy but to question and challenge and to say this is working really well or this isn’t working well but may do in the future. It’s pointless having the review if you’re not willing to challenge policy.’[1]

‘This is not about party politics, it affects us all,’ he continued.[1]

The Redfern Review into UK housing launched

The Redfern Review into UK housing launched

Homeownership 

Moving on, Redfern observed that while the review will look into homeownership, it would also be mindful of other tenures.

‘We are not trying to set a number for homeownership that we say is right and it’s not a one-way street, but it’s failing consistently and that’s not a healthy thing. One thing we’re clear on is we’re not promoting homeownership at the expense of other tenures,’ he stated.

Included alongside Redfern on the panel are Dame Kate Barker, Terrie Alafat CBE, Chief Executive of the Chartered Institute of Housing, Andy Gray, deputy chair of the CML and Ian Mulheim, director of consulting at Oxford Economics.

John Healey MP said that, ‘The Redfern Review will take a hard look at the causes of the recent decline in home-ownership, to help bring fresh ideas to the wider public debate on how we can get to grips with this problem.’[1]

[1] http://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/12138852/Government-launches-biggest-housing-review-in-more-than-a-decade.html?utm_source=dlvr.it&utm_medium=twitter

 

Average property prices in England and Wales up 6%

Published On: January 29, 2016 at 2:32 pm

Author:

Categories: Property News

Tags: ,,,

The average property value in England and Wales increased year-on-year by 6.4% in December, according to the latest monthly index report from the Land Registry.

This took the typical house price to £188,270 as month-on month, values rose by 1.2%.

Rise and fall

London recorded the largest increase in average house prices, with an annual growth of 12.4, coupled with a monthly rise of 2.1%, taking the typical price in the capital to £514,097.

The North East saw the lowest annual price growth, with a rise of just 0.8%. This took the average price in the region to £99,069. Wales was the region with the largest month-on-month fall, with a decrease of 0.8%, taking the average price of a property in the country to £121,780.

However, the number of completed house sales in England and Wales dropped by 8% to 79,960. In addition, the number of £1m plus properties sold fell by 2%.

Repossessions also fell by 51%, with London recording a 71% decline.

Average property prices in England and Wales up 6%

Average property prices in England and Wales up 6%

Activity

Mark Posniak, managing director of Dragonfly Property Finance, pointed out that with high demand and weak supply continuing in December, the usual seasonal slowdown was more muted.

‘On a more positive note, we are seeing noticeably more construction activity at the moment, particularly by smaller developers. But this will take time to trickle through into the market,’ he noted. ‘Looking into 2016, it’s hard to see anything other than a continuation of the current trend of steadily rising prices, especially with interest rates unlikely to rise in the near future and a robust jobs market.’[1]

John Eastgate, sales and marketing director of OneSavings Bank feels, sustained demand is driving the growth in values. He said, ‘a strengthening labour market, robust consumer sentiment and a supportive mortgage market all played their part, despite the obstacles provided by the festive period. This strength of demand has been compounded by the record low levels of property on the market at present.’[1]

Caution

‘Uncertainty around economic growth in 2016 provides a reason for caution. The good news however, is that house building starts appear to be at their highest level since 2007,’ he continued. ‘It is not yet strong enough to counterbalance demand. However, if this trend of improvement is maintained, it should lead to a healthier property market for investors and buyers alike.’[1]

Jonathan Hooper, managing director of buying agents Garrington Property, also believes a lack of supply is the issue. He pointed out that, ‘even though the NHBC this week announced that house building in 2015 hit its highest level since 2007, the supply of homes is still falling far short of demand.’[1]

[1] http://www.propertywire.com/news/europe/england-wales-property-prices-2016012911497.html

 

 

Starting a Family in London is Impossible for Average Household, Claims Generation Rent

Published On: January 27, 2016 at 12:44 pm

Author:

Categories: Tenant News

Tags: ,,,

Living in London is not a feasible option for the average couple that wants to start a family, according to tenant group Generation Rent.

Starting a Family in London is Impossible for Average Household, Claims Generation Rent

Starting a Family in London is Impossible for Average Household, Claims Generation Rent

The group has launched a campaign, Vote Homes 2016, which calls for better conditions for private renters from the next London mayor.

Generation Rent has studied Government rent and earnings data, finding that there is not a single London borough where the median rent on a two-bedroom home is affordable to a household earning the median salary.

Across the capital, the median rent would eat up 52% of the median salary – much more than the 30% that is considered affordable. Even in the cheapest London borough, Havering, the average rent price on a two-bed takes up 35% of the median salary.

Struggles with paying the rent with just one earner means that having a baby is unaffordable for the typical London couple.

Vote Homes 2016 hopes to give impartial advice on the main mayoral candidates’ policies that affect private tenants. Each candidate’s policies on housing are ranked through a traffic light system: red if they fail to improve the current situation; amber if they’re on the right track; and green if they will significantly improve life for renters.

The website (http://www.votehomes2016.com/) will be updated as and when candidates announce new policies.

Additionally, the group is calling on the candidates to commit to building homes at genuinely affordable rents, where the poorest 25% of Londoners would pay no more than 30% of their income on rent.

The Director of Generation Rent, Betsy Dillner, insists: “Housing is now so expensive, even couples on ordinary incomes are unable to start a family. People who grew up here are facing an impossible choice about their future. London’s status as a world capital will rapidly disintegrate if half of its population see the shutters come down on their aspirations.

“We need a mayor who will make lower rents their first priority and take immediate action to help the capital’s two million private renters.”1 

1 https://www.landlordtoday.co.uk/breaking-news/2016/1/generation-rent-starting-a-family-unaffordable-for-average-london-household