Posts with tag: housing crisis

Balancing the North-South Divide will Solve Housing Crisis

Published On: August 17, 2015 at 12:55 pm

Author:

Categories: Landlord News

Tags: ,,,,

The director of Home.co.uk believes that balancing the north-south divide will solve the housing crisis currently experienced in the south of England.

The property search engine found that the gap between asking prices in the north and south is so wide that it completely contradicts Chancellor George Osborne’s idea of a northern powerhouse.

According to the Home asking price index, prices in the north of England dropped in every region between July 2008 and July 2015. The North East experienced the greatest falls, with a 6.45% decline.

Balancing the North-South Divide will Solve Housing Crisis

Balancing the North-South Divide will Solve Housing Crisis

Over the same period, asking prices in the North West decreased by 5.72% and by 4.56% in Yorkshire and the Humber.

These figures contrast dramatically with the housing boom in London and the south of England.

In the past seven years, asking prices in the capital soared by 44.9% and by 24.71% in the South East.

Osborne vowed to back a northern powerhouse, by boosting infrastructure, employment and the building sector.

However, his latest Budget revealed further welfare cuts, including a reduction in working tax credits.

Director of Home, Doug Shephard, comments: “It seems an appalling injustice that post-crisis economic measures have effectively meant austerity for the north and stimulus for the south and London. The north-south divide has been greatly exacerbated in recent years.

“There is no housing crisis in the north and there would not be in the south if workers weren’t forced to up sticks and move south to earn a living.”1

Asking prices in the East of England rose by 14.98%, by 9.82% in the South West, 6.72% in the East Midlands and 3.05% in the West Midlands between July 2008 and July 2015.

Meanwhile, Scotland and Wales experienced declines, of 4.56% and 5.72% respectively, over the last seven years.

The full index can be found here: http://www.home.co.uk/asking_price_index/Mix-Adj_Methodology.pdf

1 http://www.propertyindustryeye.com/15115/

Homeless Women Fall into Drug Abuse

Published On: August 17, 2015 at 8:55 am

Author:

Categories: Landlord News

Tags: ,,,

Recently, a study found that homeless women are more likely to start using hard drugs.

Homeless Women Fall into Drug Abuse

Homeless Women Fall into Drug Abuse

The research, by Homeless Link, surveyed 3,555 homeless people in England, of which 29% were female.

Despite more men saying that they had used drugs or were in recovery, women were more likely to use harder drugs, such as heroin, crack, cocaine or prescription drugs. Men were more likely to have smoked cannabis or used amphetamines.

A third of homeless women have used heroin in the past month and 31% of women admitted to using cocaine.

Mental health conditions, such as depression, are also more common in women than men, with 88% of women stating that they have had a mental health issue at some point. 47% were diagnosed with a mental health problem in the last year.

More men claimed to have used drugs or alcohol to cope with mental health issues, but women who remain homeless are more likely to suffer serious mental health conditions.

Miriam Morris, Director of Church Housing Trust, says: “It is tragic that women with mental health needs end up on the streets, where their mental and physical health only gets worse.

“But it is not just about providing a roof; these women have complex needs and they need long-term help and support if they are to rebuild their lives.

“We agree with Homeless Link that there needs to be a proper audit of the needs of all homeless persons and that we should recognise the need for investment in the future of these women.”1

1 http://churchhousingtrust.org.uk/homeless-women-drugs/

Are we Building in the Wrong Places?

Published On: August 5, 2015 at 3:51 pm

Author:

Categories: Landlord News

Tags: ,,,

It is well known that the UK is facing a serious housing crisis, fuelled by a lack of new homes. But are the homes we are building even in the right place?

The UK’s population is rising at an increasingly fast rate, but the level of house building has dropped recently. Two years ago, it even fell to a post-war low of 135,000.

It has been suggested that when homes are being built, they’re in the wrong places.

The following maps explain this idea:

The first map shows the rate of population growth in different parts of the UK. The darker the red, the more people.

The second map indicates the rate of house building in different locations around the country. The darker the red, the more homes being built.

This issue is worst in London, with the Greater London Authority (GLA) estimating that the capital needs between 49,000 and 62,000 new homes per year to keep up with demand.

However, the London Plan, the strategic planning team at the GLA, has set a target of only 42,000 a year. This was calculated based on how many it believes can be accommodated. Last year, the capital built around half of this, just 24,000.

Director of planning consultant Quod, Barney Stringer, who produced the data for the maps, expresses his concern: “There is an overall shortage of housing and not enough house building, and new homes are needed almost everywhere, but the high growth areas that need it most are not managing to provide new homes much faster than low growth areas.

“The really big planning question for the next few years is whether the districts around London can and will provide for any of the growth that London can’t accommodate. The maps show quite how little is being achieved at present.”1

But one of the biggest debates surrounding house building is the green belt.

When the Business Secretary, Sajid Javid, highlighted the Government’s plans to relax planning laws in a bid to drive up house building, he emphasised that the proposal would never breach green belt rules.

The green belt is the land surrounding towns and cities, which was reserved as building-free over 50 years ago.

However, ministers have recently released figures that indicate there is not enough brownfield land in the UK to accommodate the 300,000 homes that the country needs.

The Department for Communities and Local Government estimates that there is enough land for around 200,000 homes to be built on brownfield land.

Research by business group London First shows the huge opportunity that the green belt would offer to solve the UK’s housing crisis, compared to sticking to brownfield sites.

In total, urban areas of England cover just 9.9% of the total landmass and actual built areas just 4.2%. The green belt covers 12.4% of the total area of England.

London First, Stringer, academics and the Organisation for Economic Co-operation and Development (OECD) believe that the green belt should not be preserved forever.

The OECD says that the green belt is “a major obstacle to development around cities, where housing is often needed.”1

However, the Council for the Protection of Rural England argues that the green belt is to stop urban expansion.

Regardless of the solution, the two maps above reveal that when the UK does build, it’s in the wrong places.

1 http://www.independent.co.uk/news/uk/politics/the-two-maps-that-show-the-government-isnt-building-enough-houses–and-the-ones-they-are-building-are-in-the-wrong-places-10414255.html

First Time Buyers Seeking Rural Properties

Published On: August 4, 2015 at 10:51 am

Author:

Categories: Landlord News

Tags: ,,,,

Recent research from Experian indicates that aspiring homeowners are moving away from city centres and seeking properties in rural locations.

First time buyers are more likely to buy a house in the Western Isles of Scotland rather than in an exclusive area, such as Kensington and Chelsea.

Furthermore, the average age of a first time buyer has slowly risen over the last decade. Experian found that first time buyers are more often young families between the ages of 26-35-years old, than younger professionals.

This is believed to be due to families seeking a permanent residence and young professionals enjoying the flexibility of renting.

First Time Buyers Seeking Rural Properties

First Time Buyers Seeking Rural Properties

Affordability is also a key factor in purchasing one’s first home.

The latest data, from 2012, shows the average age of first time buyers in each region of the UK:

Region

Average age of first time buyer
North West 35
North East 35
Yorkshire & the Humber 36
East Midlands 35
West Midlands 38
East of England 43
London 52
South East 45
South West 48

These shocking statistics reveal that the average first time buyer in the capital is 52-years-old. This is considerably higher than other parts of the country, despite the youngest first time buyer still being 35-years-old.

London’s first time buyers must therefore wait longer until they have saved enough for a deposit and can securely purchase a property.

But London is still out of reach for so many. A report in 2014 states: “On the best measure of affordability, a standard property in London is half as affordable as it was in 1997 and not a lot more affordable than at the worst point in 2007.”1

An example of affordability pressures in the capital is emphasised by this property comparison: A two-bedroom home in Kensington and Chelsea is on the market on Rightmove for £3.1m. A three-bedroom house on the Scottish border is on the market for £182,500.

In this instance, a first time buyer could save a massive £2,917,500 by looking further afield.

Richard Jenkins, a senior consultant at Experian, comments: “The population in British cities has clearly dramatically altered in recent times. With central areas now dominated by a combination of the very well off and a new generation of young renters.”1 

Londoners are quite aware of the dramatic house prices in the city. But it is still a desirable location of accessible amenities. Property developers take advantage of this fact and make a considerable profit out of those that struggle to live in the capital.

It is a known fact that more homes need to be built, but a levelling of prices across all UK regions would also make housing more affordable for all buyers. First time buyers should have the flexibility of living either in a city or in a rural spot.

The amount of private renters in the country will continue to rise if prices do not come down, meaning more aspiring homeowners pushed out of the market.

1 http://www.todaysconveyancer.co.uk/first-time-buyers-moving-further-afield-cms-15391

Bolt-On Pods to Solve Homelessness

Published On: July 27, 2015 at 9:57 am

Author:

Categories: Landlord News

Tags: ,,,,

An architect has designed pods that bolt on to existing buildings in an attempt to combat the growing problem of homelessness in Britain.

James Furzer, an award-winning architectural technician, has created plans for the steel-framed pods that are reached by ladder. He believes they could be used nationwide as short-term shelters for those sleeping rough.

The 26-year-old has been praised by housing charities, which are shocked by the country’s lack of affordable housing.

The static pods are designed to provide four to eight hours’ shelter for those in need. Furzer says: “I know it’s not going to solve homelessness but it is somewhere to give them a night’s rest, to give them a bit of an escape for a few hours.”

The pods would be made from plywood and steel frames and could be bolted on to any building. They feature windows for natural light and a foldable shelf with a mattress inside.

Furzer, from Dagenham, East London, adds: “It’s not a five-star hotel, but it’s got a comforting feel.

“It’s literally somewhere warm, dry and secure where someone could just get a few hours’ rest, particularly in bad weather conditions.”1 

The designs won the top prize of £5,000 in the Space For New Visions contest, organised by manufacturers Farko.

Homelessness charity Shelter has estimated that there are at least 6,500 people sleeping rough in London alone.

1 Radnedge, A. (2015) ‘The cost bolt-on crash pods designed to keep the homeless off the streets… Literally’, Metro, 24 July, p.6-7

Right to Buy Extension Will Hit Affordable Housing

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

Author:

Categories: Landlord News

Tags: ,,,

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