Tag Archives: crisis
A rent freeze in London could seriously reduce number of properties available, study finds
Some 60% of London landlords would reduce the size of their property portfolios in the event of a rent freeze, new research has found. The report commissioned by the London Assembly Housing Committee carried out by the Cambridge Centre for Housing and Planning Research (CCHPR), surveyed amateur landlords with just a few properties as well as commercial build to rent landlords and investors. CCHPR put forward six potential scenarios of rent stabilisation, from a one off rent freeze for three years, through to linking rent rises to wage rises. The study found that the majority of landlords would continue as they are if rents could only be increased in line with inflation, although 40% of participants stated that they would sell some or all of their properties if this measure was introduced. What's more, the report claims that on the whole landlords taking part are not keen to offer longer tenancies but 52% said they would be more inclined to do so if tax incentives were available for doing so. ‘Much has been said from all sides about rent controls but the debate has been sorely lacking in facts, so it's incredibly useful to have these set out in this report,’ said Tom Copley, chair of the London Assembly Housing Committee. ‘The choice is not simply between regulating rents and not regulating rents. There is no one size fits all system of rent control, with many cities around the world adopting different models. Each system has upsides and downsides,’ he explained. ‘In terms of what would work for London we need solutions that work for the millions of Londoners, especially families, in the rental sector. For families, the prospect of having to up sticks with very little notice often means disruption to many aspects of their lives, including schooling and employment,’ he added. According to David Smith, policy director for the Residential Landlords Association, it is clear that the country will need more homes to rent, if it is to address the housing crisis. ‘This report reminds us of the dangers of rent controls which would in fact reduce supply, thereby increasing rents. Rent controls would also severely reduce standards in rented housing as investment dries up,’ he said. Continue reading
Rural homes in the UK £43,490 more expensive than those in urban areas
Property prices in the countryside in the UK are, on average, £43,490 or 22% higher than in urban areas, according to the latest annual Halifax Rural Housing Review. There is a rural premium in all regions with countryside homes typically commanding a significant price premium over urban areas, although there are large variations across the country. In rural areas of West Midlands the average house price of £252,927 is £84,610 or 50% higher than in the region's urban areas at £168,317, the largest difference in the index. In the East of England, the premium is £16,806 or 6%, the smallest difference. House prices in rural areas are less affordable than in urban areas, the research also shows. The average property price in rural areas is seven times average annual earnings compared with a ratio of 5.9 in urban areas. The least affordable rural local area district is Tandridge in Surrey where the average house price of £433,932 is 10.8 times local annual average earnings of £40,266. All 10 of the least affordable rural districts in Britain are in southern England, including East Dorset where the average house price of £329,056 is 9.6 times local annual average earnings. This is followed by Purbeck in Dorset at 9.4, Mid-Sussex, Cotswold and North Devon all at 9.2. The least affordable rural district outside the south are Hambleton at 8.2 and Ryedale at 8.1, both in the North York Moors. Copeland in West Cumbria is the most affordable rural district with an average house price of £140,364 that is 3.7 times local average annual earnings of £38,367 while Chiltern is the most expensive with an average house price of £465,970. The next most expensive rural districts are Waverley in Surrey at £462,145, Tandridge and South Oxfordshire at £396,287. The average house price in Chiltern is four times higher than in East Ayrshire at £115,394 which is the least expensive rural district. Despite the higher price for buying in the countryside the gap with urban prices is narrowing, and property prices have risen more slowly in rural areas during the past five years, according to the research. Between 2010 and 2015, the average price of a home in the countryside rose by 13% compared with an average increase of 23% in urban areas. Between 2014 and 2015, the average price of a home in the countryside has risen by 5% compared with an average 8% increase in urban areas, excluding Greater London. Overall, the rural/urban premium has narrowed from 34% or £52,279 over the last decade. First time buyers account for 42% of all mortgage financed purchases in rural areas. This is significantly lower than in urban areas where first time buyers account for 54% of such purchases. Affordability difficulties are the key factor behind the lower level of first time buyers in rural areas. Due to the high level of property prices, getting on the rural property ladder is at its most challenging for first time… Continue reading
New manifesto calls for a more democratic planning system in the UK
A new manifesto has been launched in the UK to fight back against what it calls an assault on the country’s planning system and calling for a more democratic outlook for home and infrastructure building. Over 60 organisations and individuals have come together to call on the Government to ensure that people are placed back at the heart of the planning system, led by charity the Town and Country Planning Association (TCPA) and supported by environmental and disability rights organisations, professional bodies, housing associations and community groups. The manifesto represents the views of a broad cross sector coalition of organisations and individuals who share a common belief in the value of planning to improve the quality of lives and the condition of communities, according to TCPA chief executive Kate Henderson. ‘We believe that a powerful and democratic planning system can help ensure the delivery of decent healthcare, schools, jobs, public transport and affordable homes which are accessible and have enough space for kids to play,’ she said. ‘These are things that all sections of society should be able to enjoy as a matter of course, regardless of where they live or their ability to pay. However, the planning system as we knew it is being continually undermined and devalued though significant reforms and deregulation,’ she explained. ‘Over the last 30 years the reputation of planning has declined and it has lost all sense of the progressive social values that once lay at its core. This is partly because it lost sight of any vision that connected with people's real lives and partly because planning regulation was seen as a brake on the free market. We know this is wrong: the countries that are creating great places have strong planning systems,’ she pointed out. ‘That is why we have brought together organisations and individuals who are determined to ensure that planning shapes the kind of places that this nation deserves. Planning must change so it is genuinely focused on people's needs. Our objective is to reinvent creative social town planning which did so much to lay the foundation of a civilised Britain,’ she added. The manifesto says that the Government should give councils back power over permitted development, rebalance the National Planning Policy Framework to ensure that outcomes for people are just as important as the needs of land owners and developers, and restore a comprehensive framework of place making standards for housing including mandatory minimum standards for accessibility and space. It also says that local Government should adopt a strong social dimension to local plans. This means shaping policy that prioritises place making, providing for the full range of hard and soft infrastructure, and ensuring social and affordable homes receive the highest priority. It also suggests that the private and third sectors should establish corporate commitment to a fair and inclusive planning system while planning professionals and academics should transform planning education to ensure planners have the right skills in community development. As… Continue reading
