Tag Archives: europe
Research shows majority of UK parliamentarians support planning fees rise
Some 61% of MPs in the UK broadly agree that planning fees should increase and almost half 47%, say they should increase with stronger guarantees on planning performance. Indeed, MPS from all political parties support fees being changed, according to a new poll commissioned by the British Property Federation (BPF). Some 65% from the Labour party and 61% from the Conservative party support an increase in fees. The BPF says that the results show that Parliamentarians recognise that there is a problem, alongside the property industry and local authorities. The BPF and GL Hearn’s 2015 Annual Planning Survey revealed that 55% of local planning authorities perceived under resourcing to be a significant challenge, and that 65% of applicants are happy to pay more to shorten waiting times. The government has taken some steps to address this problem, proposing to allow local authorities to outsource the processing of planning applications and to reward well performing local authorities by allowing them to increase planning fees by an inflationary increase, but the BPF has warned that these steps will not go far enough. Responding to a government consultation on the technical planning changes set out in the Housing and Planning Bill, the BPF has welcomed the government’s recognition of the fact that local authorities ‘are struggling to provide the service required by applicants’, but cautions that the measures suggested will not be enough to plug the skills gap. ‘The public and private sectors have both been very clear about the need for more resourcing in local authority planning departments, and we now know that there is political understanding of this issue as well,’ said Melanie Leech, BPF chief executive. ‘We are supportive of the small steps that government is taking to address this, but are not holding out hope for any great impact. Some local authority planning departments are simply short staffed, putting those who remain under enormous strain,’ she explained. ‘Outsourcing the processing of planning applications is likely to relieve this burden to an extent, but it is not going to solve the chronic shortage of skills and resource that is the true problem,’ she added. Meanwhile, land broker Aston Mead is advising councils without up to date local housing plans in place to act quickly before the Government steps in to write their plans for them. Local authorities have been given until March 2017 to produce a local plan in accordance with the National Planning Policy Framework (NPPF), which was introduced in 2012. However, with less than a year to go, recent research suggests that fewer than a third of local planning authorities outside London have an up to date NPPF compliant plan. ‘It’s absolutely incredible that with the deadline looming large on the horizon, so few councils have got their act together. By next year they will have had five years since the introduction of the NPPF and yet the vast majority have still to… Continue reading
The growth of London house prices has slowed down, new data suggests
London house price growth has slowed in the first quarter of 2016 and is now nearly three times lower than it was in the last quarter of 2015, new research shows. The London market recorded price growth of 1.2% in the first three months of the year while nearby regions have seen higher price growth, according to the latest UK House Market report from the Lancaster University Management School. For example, the Outer Metropolitan area has seen price growth of 3.1%, Outer South East 2.5% and East Anglia 4.1%, the data from the report shows. The report says that this is in line with the so-called ripple effect, suggesting that substantial house price increases in London over the last few years spread out to surrounding regions over time and have a leading effect on the UK housing market. It suggests that the slowing growth in the London property market has coincided with two factors, possibly working in opposite directions: an increase in the uncertainty of global economic conditions, especially in the East, and the run-up to the introduction on the 01 of April of extra 3% stamp duty on additional property purchases. The Observatory has been set up to monitor for signs of exuberance in prices in the UK regions, and releases its analysis each quarter alongside the house price data. Continue reading
UK referendum on European Union membership set to hit real estate markets
The forthcoming UK referendum on the country’s future in the European Union poses risks for the re sector due to the uncertainty it is creating, according to a new analysis report. This uncertainty leading up to the vote on 23 June is likely to have a somewhat paralysing effect on investor decisions on real estate purchases, says the report from Standard and Poor’s. It also says that should the country decide in favour of leaving the EU, known as Brexit, then the uncertainty will be prolonged during the subsequent exit negotiations and this may turn investor sentiment more negative. ‘This could potentially reverse the significant boost to real estate asset values that the UK and London in particular has experienced in recent years. Added to this, financial services firms, already under pressure to contain costs, may find an additional reason to reduce office space in London,’ the report explains. ‘Consequently, we consider the risks to the real estate sector of a Brexit may be most pronounced in the commercial real estate sector, particularly in the office segment, more than in retail and logistics,’ it points out. ‘We also think the effects will be more concentrated in London than other parts of the UK. Within the capital, the City of London would be hardest hit, because of a high concentration of international financial services firms,’ it adds. Given the possible negative consequences of Brexit, Standard and Poor’s said that its ratings on real estate investment companies, home builders, and structured financing in commercial and residential mortgage backed assets will require ongoing monitoring. It suggests that in the next few months ahead of the referendum, the uncertainty regarding the outcome of the vote may slightly disrupt the real estate markets. ‘We think it could lead to some deferrals in deals, timed to close after, rather than before the June 2016 vote. We expect that commercial real estate may be more heavily affected than residential overall, as businesses may delay their investment decisions and investors may put on hold contemplated transactions pending more clarity on the referendum result,’ the report says. ‘In our view, a vote in favour of Brexit would accentuate and prolong this period of paralysis since it would most likely take several years for the terms of the exit to be defined. Since the 2009 downturn, wealthy individuals and institutional investors have considered the UK real estate sector a very safe asset class. These assets attracted sustained investor demand primarily for their value preservation characteristics,’ the report explains further. ‘A vote in favour of a UK exit from the EU in June 2016 would likely threaten that perception of safety, at least for some time. A falling UK currency may also contribute to such a change in perception but would also make real estate in the UK less costly to international investors in foreign currency terms,’ it states. It makes the point that residential real estate would not be immune to a Brexit. ‘The… Continue reading
