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New homes in UK seen as cramped and of poor quality, new research has found
The UK government has pledged to build hundreds of thousands of much needed new homes but it seems that this is not what home owners want with the majority preferring older properties. People think new homes are too small, characterless and of poor quality with new research finding that just 21% would actually buy a new build and 47% want a home that is 10 years old or older. The survey carried out for the HomeOwners Alliance found that 38% think that a low standard of build quality is the main disadvantage of a new home. A third were put off by the size of rooms and other dislike included the lack of character and smaller gardens. ‘We need more new homes, but they have to be homes that people want to live in, not homes that are quick, easy and cheap for house builders to throw up,’ said Paula Higgins, of the HomeOwners Alliance. ‘What we need to solve the housing crisis are quality homes of character and space, and challenge the housing industry to deliver. After the war, they built homes fit for heroes. All we want is homes fit for home owners. Homes shouldn’t be built just for a quick profit, but to last for generations to come,’ she added. There are however, positive aspects to new homes, the research also found. For example no old pipes on show and no hidden problems. And half of people believe the biggest benefits of a new build were the low maintenance costs and better energy efficiency. Kim Vernau, of BLP insurance, which funded the research, said that there is reasoning behind the perception over quality. ‘With activity in the construction industry on the increase as local authorities and developers attempt to meet the housing shortfall, there is a real risk that building standards will slip,’ said Vernau. ‘Consumers want peace of mind and reassurance that the home they are purchasing is fit for purpose and built to last rather than simply chasing a house-building statistic,’ added Vernau. Official figures show about 120,000 homes were completed last year, an increase on 2013 but still only half the 240,000 experts say are needed to deal with the UK’s chronic housing shortage. The Government has pledged to ease the supply shortage by building 200,000 cut-price starter homes. Prime Minister David Cameron said first time buyers under 40 would be able to buy these houses at a 20% discount to ensure everyone who works hard can have a home of their own. Continue reading
Three tier recovery in UK commercial property markets, led by offices
The UK commercial property market is experiencing a three tier recovery with offices and retail living in different worlds, according to the latest analysis report. All property capital growth increased by 0.8% in May month on month, up from the 0.5% reported for April, says the Knight Frank June market outlook report. Offices saw the highest capital growth at 1.5%, and retail the lowest at 0.2% while the 12 month total return fell again to 17.6% and investment volume from January to May was £23.6 billion, up from £17.8 billion for the same period of 2014. ‘The winter and early spring were a time of deceleration for commercial property, following the heady capital growth seen in 2014. While in May IPD’s capital growth index gained momentum, the improvement was not evenly spread across the sectors,’ said James Roberts, Knight Frank chief economist. The report analysis points out that offices surged ahead, industrial achieved a less dramatic increase, and retail barely saw any improvement. Roberts explains the disparity is probably due to the fact that in recent years industrial has enjoyed a fillip in the occupier and investment market from the rise of e-commerce but that is not ‘news’ any more. ‘Possibly investors now view the internet effect as priced in, taking some of the heat out of the market. This is perhaps a healthy downwards gear change, especially as the internet is no longer expanding its market share in retail as aggressively as a few years ago,’ he explained. He also pointed out that in 2000 the office market became overheated in London and the South East, as property investors and developers overestimated the growth prospects of tech firms. ‘Hopefully what we are seeing is a soft landing for industrial following its e-commerce boom of recent years,’ he added. But he also said that explaining retail property’s under performance is, however, getting harder. ‘After all, the UK retail sales figures have been robust for some time, and the consumer has done much to support GDP growth by compensating for sluggish export demand and a retrenching government. Plus, there are the new occupier groups and shopping formats that have emerged to meet changing consumer trends, such as cafés, mini supermarkets, and click and collect. These should be compensating for problems elsewhere in the sector. Perhaps the explanation is to be found in leasing market fundamentals,’ he explained. So far this year the UK shop vacancy rate has hovered around the 13% mark according to Local Data Company. This is in marked contrast to the steady decline in vacancy rates in many UK office markets, particularly in London and the South East where levels are in most cases lower than in 2007. ‘These dynamics are shaping rental growth, which is reasserting itself significantly in the office market, and barely in existence for retail. Admittedly, the rental growth for London and the South East is the driving force behind the IPD office figures, but there are… Continue reading
UK affordable housing target exceeded as next five year target is announced
More than 260,000 affordable homes have been delivered in the UK since April 2010 and a further 275,000 will be built in the next five years, it has been confirmed. In the last 12 months some 60,000 affordable homes were delivered, a rise of 63% on the previous 12 months, according to UK Housing Minister Brandon Lewis. He said that there will be £38 billion public and private investment for the Affordable Homes Programme between now and 2020 and he added that the 2011 to 2015 programme has exceeded expectation with 186,000 affordable homes since it started, some 16,000 more than originally planned. ‘This government is determined to ensure anyone who works hard and aspires to own their own home should have the opportunity to turn their dream into a reality. Our affordable housebuilding efforts are exceeding our ambitions and delivering more than 260,000 affordable homes,’ said Lewis. ‘It’s a boost to families across the country, providing them with new quality homes that are available at an affordable rent or to buy through our shared ownership scheme. This is real progress but we know there is more to do. That’s why £38 billion of public and private investment will be made available over the next five years to deliver 275,000 extra affordable homes, the fastest rate of delivery for 20 years,’ he explained. The Affordable Homes Programme includes social rented homes, affordable rented homes and affordable home ownership schemes, and is a key part of the government’s long term economic plan. The data shows that nearly a third of affordable homes delivered last year were in London. Council areas that have seen some of the biggest numbers of affordable homes delivered since 2010, include Cornwall with 3,750, Birmingham with 3,460, Wiltshire with 3,420, Leeds with 2,360, Liverpool with 2,270 and Manchester with 2,160. Continue reading
