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UK announces plans for more flexible planning scheme for new homes
Councils in the UK will compete to process planning applications and be able to offer fast track application services under new proposals from the government now out for consultation. Ministers announced a pilot scheme which is the first step towards tackling the lack of incentive for councils to improve and speed up their planning service which has been causing drawn out applications and local frustration for both house builders and individual applicants. The proposals are expected to boost house building and speed up the planning application process by giving applicants the choice of whether to submit their plans to the local council, a competing council or a government approved organisation that would process applications up until the decision point. Councils will also be able to offer the fast track planning application service either through competition pilots or potentially through devolution deals. However, decision making on planning applications would remain with the local council to ensure decisions are taken locally and maintain the democratic link between local people and decision makers. ‘Council planning departments play a vital role in getting local house building off the ground, but for too long they have had no incentive to get things done quickly or better, resulting in drawn out applications and local frustration,’ said Communities Secretary Greg Clark. ‘These proposals will be a boost for house builders looking to build much needed new homes for hard working families and first time buyers, and for local people looking to get a planning permission for home improvements through their local council quicker,’ he added. According to Planning Minister Brandon Lewis many councils are indeed already working hard to improve the services they offer their residents, and across the country people’s satisfaction levels remain high. ‘Now we want to go further by setting out these ambitious proposals to link any future increases in application fees to councils’ performance, and testing more competition including through offering dedicated fast track application services,’ he explained. Historically councils have had a ‘closed market’ in handling planning applications, with limited incentive for innovation and efficiency. However research studies over the last three decades in the UK and abroad suggest there are cost savings of up to a fifth for competitively tendered or shared services. A consultation on the competition pilots and fast track services has been published and it also includes proposals to make any future increases in councils’ fees for processing planning applications dependent on their performance in terms of speed and quality of decisions. Further details on how the pilots will run will be published after the consultation has closed. Change is needed urgently, according to the Federation of Master Builders (FMB). ‘Across the country small house builders continue to be frustrated by a painfully slow planning process that is holding back the delivery of new homes,’ said FMB chief executive Brian Berry. ‘The numerous sources of delays and inefficiencies in the system impact upon house building rates, and act as a major deterrent to small… Continue reading
Nationally home prices in Canada up 17% year on year
Residential property sales across Canada edged upwards from December to January with annual transactions increasing by 8% compared to a year ago. The data from the Canadian Real Estate Association (CREA) also shows that home prices were up 17% year on year but not everywhere with British Columbia and Ontario seeing values fall slightly. Month on month sales increased by 0.5% and this lifted national sales activity to the highest level since late 2009. The number of local housing markets was almost equally split between those where sales were up from the month before, and those where sales were down. Monthly sales increases in the Greater Toronto Area (GTA) and Lower Mainland of British Columbia fuelled the national sales increase and offset monthly sales declines in Calgary, Edmonton and the Okanagan Region. ‘Single family home buyers in the GTA and Lower Mainland of British Columbia had been expected to bring forward their purchase decisions before tightened mortgage regulations take effect in February 2016,’ said CREA president Pauline Aunger. ‘If listings in these and nearby markets were not in such short supply, January sales activity would likely have reached even greater heights. Meanwhile, other major urban housing markets have an ample supply of listings, particularly where some home buyers have become increasingly cautious amid an uncertain job market outlook,’ she added. CREA chief economist Gregory Klump pointed out that single family homes in the GTA and Greater Vancouver areas were in short supply amid strong demand in contrast to side lined home buyers and ample supply in a number of Alberta housing markets. ‘Tighter mortgage regulations that take effect in February may shrink the pool of prospective home buyers who qualify for mortgage financing and cause national sales activity to ease in the months ahead,’ he added. A breakdown of the figures shot that actual, not seasonally adjusted, is now 2.6% above the 10 year average for the month of January. Activity was up compared to January 2015 among roughly two thirds of all local markets. B.C.’s Lower Mainland and the GTA again contributed most to the national increase. Greater Vancouver saw the biggest rise in annual prices with growth of 20.56% followed by the Fraser Valley up 16.94% and Greater Toronto up 10.69%. Home prices in Victoria increased 7% and were up 5.5% in Vancouver Island. By contrast, home prices fell by 3% in Calgary, by 2% in Saskatoon, and by less than 1% in Regina. While home prices have begun to decline in Calgary and Saskatoon only fairly recently, they have been trending lower in Regina since early 2014. Prices crept higher on a year on year basis in Ottawa by 1.10%, increased by 1.48% in Greater Montreal and were up 6.57% in Greater Moncton. The actual, not seasonally adjusted, national average price for homes sold in January 2016 was $470,297, up 17% year on year but continues to be pulled upward by sales activity in Greater Vancouver and Greater Toronto, which are among Canada’s most… Continue reading
Number of million pound properties in UK expected to triple by 2030
The number of million pound properties in the UK will more than triple by 2030 and one in four London homes will cost £1 million or more by 2030, new research shows. Yet less than 1% of properties in the North East, Yorkshire and Humber, the North West, Scotland and the East Midlands will be in this price bracket, according to the study from Santander Mortgages. Also, by 2030 the average property price in the UK expected to double, surpassing the half a million pound mark with prices set to soar to as much as 16.5 times average incomes. Today, less than half a million homes in the UK are valued at £1 million or more, says the research done partnership with economist and London School of Economics professor of economic geography Paul Cheshire. It says that 25% of housing stock in London is expected to be valued at £1 million or more, rising to 70% in two London boroughs, highlighting a stark geographical divide. Overall, the average UK property price, which currently stands at £283,565 is expected to increase 23% by 2020 to £349,3000. Fifteen years from now in 2030, the average UK property price will have almost doubled with a 97% increase, surpassing the half a million pound mark at £557,444. While property prices are expected to soar, predictions suggest that incomes will not keep pace, resulting in an overall decline in affordability. At present in the UK, the average property price is 7.9 times the average income, but by 2030, this is expected to hit a multiple of 9.7. Again, this trend is elevated in London, where prices are currently 11.5 times incomes and predicted to rise to an eye-watering 16.5 by 2030. ‘Property price inflation will tip many existing home owners into the million pound price bracket but could also price some aspiring buyers out of the market if they don’t have the right support. The current property market is buoyant and the deals available to new and existing owners are extremely competitive, so those wishing to buy or move shouldn’t be put off,’ said Miguel Sard, managing director of mortgages, Santander UK. ‘Regardless of the price point a buyer is considering, our advice remains the same; do your research, find a mortgage provider that offers competitive rates and a range of products to ensure that the right deal is secured, and above all, ensure the repayments are affordable,’ he added. Cheshire pointed out that by 2030 the divide between housing haves at the top and the have nots at the bottom will be even wider than it is now. ‘More owners will enjoy millionaire status, as homes that many would consider modest fetch seven figure prices in the most sought after areas,’ he said. ‘Property price inflation is beneficial for existing owners who will see their net-wealth increase, but it will make entering the market more difficult still for new buyers, further highlighting the importance of… Continue reading
