Posts with tag: new-build properties

Where are the best (and worst) locations for new builds in Britain?

Published On: September 12, 2017 at 9:59 am

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Interesting new research from Arygyll Property Partners suggests that a good combination of value for money, house price growth and demand is key to the UK’s best location to build a new property.

Taking this into account, Argyll’s analysis shows that Leeds offers the best mixture. New build homes here are worth 41% than existing properties in the city on average. In addition, new builds have risen in value by 13% year-on-year.

New Build Properties

Data from the report shows that the top 10 local authorities for building new homes were:

Region Major residential planning applications granted New build property price increase (YoY) New build value compare to existing homes Monthly Transactions compared to average for a local authority Weighted Ranking
Leeds 95% 13% 41% 380% 1
Birmingham 96% 14% 40% 373% 2
Cornwall 80% 11% 8% 355% 3
County Durham 85% 12% 59% 244% 4
Wiltshire 84% 14% 29% 215% 5
Bradford 94% 11% 42% 201% 6
City of Bristol 91% 13% 12% 180% 7
Manchester 95% 13% 23% 153% 8
East Riding of Yorkshire 87% 12% 41% 145% 9
Liverpool 97% 11% 55% 139% 10

Brian Markovitz, Director of Argyll Property Partners, observed: ‘Developers should head to Leeds if they’re looking to build homes in England. Property values for new builds in the city are seeing double-digit growth as increasing employment drives demand for homes. The significant gap in the price of new homes compared to existing properties means there are healthy profits to be made, while the high transaction figures suggest homes should be relatively easy to buy and sell.’

‘Leeds City Council is also one of the best for encouraging house building, approving almost all of the major applications it receives. Major new developments such as the Seacroft site in the east of the city suggest many are already discovering the opportunities Leeds has to offer for house builders,’ he continued.[1]

Where are the best (and worst) locations for new builds in Britain?

Where are the best (and worst) locations for new builds in Britain?

Worst New Build Regions

On the other hand, Surrey Heath in South-East England was found to be the least attractive location for new build homes. High property values in Surrey mean that developers have to pay a premium price to ensure a site, in comparison to other regions of the country.

The worst 10 local authorities for building new homes were found to be:

Region Major residential planning applications granted New build property price increase (YoY) New build value compare to existing homes Monthly Transactions compared to average for a local authority Weighted Ranking

(out of 324)

Surrey Heath 75% 7.24 -23% -52% 324
Hambleton 75% 4.44 24% -55% 323
Epsom and Ewell 38% 8.64 12% -50% 322
Ribble Valley 86% 2.69 49% -66% 321
Richmondshire 85% 4.22 35% -64% 320
Pendle 77% 0.96 62% -43% 319
Spelthorne 50% 9.27 -1% -41% 318
Three Rivers 67% 6.89 30% -58% 317
Hammersmith and Fulham 80% 5.23 -2% -17% 316
Islington 79% 6.86 -2% -31% 315

Mr Markovitz concluded by saying: ‘For developers, Surrey Heath doesn’t appear to be the best location for new builds. The higher land values in the area mean that profit margins will be squeezed. Despite Surrey Heath’s proximity to London, the large amount of Green Belt land in the area means home sales are also significantly lower than the average for a local authority. Renovating an existing home may yield better returns for anyone looking to invest in Surrey Heath. It’s also noticeable that two London boroughs feature close to the bottom as Stamp Duty, high land values and a decline in transactions combine to hamper Prime Central London’s attractiveness to developers.’[1]

[1] http://www.propertyreporter.co.uk/property/where-are-the-best-and-worst-locations-in-the-uk-to-build-new-homes.html

Leaseholds on new builds could be banned under new proposals

Published On: July 25, 2017 at 11:08 am

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Categories: Property News

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So-called unfair charges levied on purchasers of new-build houses could be banned in England, under a new crackdown proposed by the Government.

Leaseholds on new build properties would be prevented, while ground rents could also be dramatically reduced, under plans set for public consultation.

Fees

Some new-build property owners have found that they were permitted to pay large amounts of money for features that could be considered as ordinary. These included putting up a conservatory, changing floor materials or simply painting their garden fence!

In addition, spiralling ground rents, which can double over the course of a decade, are also leaving many out of pocket.

Government figures suggest that 1.2million leasehold houses are present in England, with this number rapidly increasing. The Government has acknowledged that the terms of some of these leases are becoming more-and-more onerous to those purchasing leasehold properties. Many are left needing to find thousands of pounds to pay their freeholder in order to carry out these often simple improvements.

As such, the Government has outlined plans to cap leasehold fees and crackdown on properties that qualify for the Help to Buy scheme. Some developers have voluntarily stopped the practice of selling on their leasehold to private companies but others have not.

Leaseholds

Generally, the term leasehold applies to flats with shared space. However, developers, particularly in the North West of England, have been selling houses on these terms, before selling the leases on.

Now, Communities Secretary Sajid Javid is pledging to try and solve these issues. Under the proposals, there will be a ban on new builds being sold as leaseholds, alongside ground rents being restricted to as low as zero.

Mr Javid noted that some buyers have faced, ‘unreasonable and long term financial abuse’

Leaseholds on new builds could be banned under new proposals

Leaseholds on new builds could be banned under new proposals

‘It’s clear that far too many new houses are being built and sold as leaseholds, exploiting home buyers with unfair agreements and spiralling ground rents. Enough is enough. These practices are unjust, unnecessary and need to stop. Our proposed changes will help make sure leasehold works in the best interests of home buyers now and in the future,’ he explained.[1]

The eight-week consultation process with new legislation is expected by the beginning of 2018.

Delighted

Beth Rudolf, Director of Delivery at The Conveyancing Association, observed: ‘We are delighted to see the Government responding to such a significant weight of evidence from leaseholders and stakeholders in the property industry, and producing proposals intended to prevent additional homeowners getting caught by escalating ground rents and unreasonable consent fees.’

‘We look forward to hearing more details on these proposals and hope they will deal with the single biggest loophole, the Commonhold and Leasehold Reform Act, which currently excludes leasehold homeowners from having any protection from unreasonable fees and unreasonable delays when buying, selling or simply improving their property,’ she added.[2]

[1] http://www.propertywire.com/news/uk/leaseholds-new-houses-england-banned/