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Three year study says self builders in UK struggle to fulfil their dream home
Even people with the means to build their own home are struggling to do so in the UK in a housing sector dominated by traditional models of construction and ownership. According to a new report from Goldsmiths, University of London, despite the government wanting to encourage more people to build their own home and the huge popularity of the television programme Grand Designs, it is only those with access to certain things that ever end up fulfilling their dream. Dr Michaela Benson of the university's Department of Sociology at Goldsmiths, spent three years studying self building as a form of housing provision in the UK and examining the changing context of housing in Britain, from supply through to regulation, and the role this plays in contemporary self build. She conducted numerous interviews with those who have created their own homes, offering a personal, sociological, focus in contrast to most policy or industry led research and found that self build is a housing option only really open to those with social, cultural and economic capital as well as existing skills and knowledge. This is in contrast to the vision of Walter Segal and his self build projects in 1970s Lewisham, which saw men and women from a range of backgrounds come together to learn skills and create new communities, with dwellings that were quickly and cheaply built as well as environmentally friendly. Dr Benson has explored a diverse range of paths into self building, from community focused projects to self builds that weren’t planned but became necessary to families whose former houses had deteriorated to the extent to which the only solution was to knock them down and start again. She also found that while access to financial resources are a necessity in order to become a self-builder, even those with capital find that the housing sector and related industries just aren’t geared towards their needs. Many self builders seek new specialist materials, particularly those that reduce energy consumption for their homes, but have difficulty finding people with the expertise to install them. Self build mortgages are just as hard to procure. It’s apparent that more extensive adaptation of services and products to the needs of self-builders would be valuable if the industry is to be scaled up, Dr Benson argues. She says that the population of self builders can and should be more diverse. 'Although the majority of self build projects result in home ownership, the community self build sector also promotes self build for social or private rent, while some innovative schemes such as LILAC centre on mutual home ownership,' she said. 'These are an important part of the housing landscape that present real opportunities to challenge the system of house buying and tenure as it currently stands. Self building could challenge the dominant modes of housing procurement and a market oriented towards home ownership and profit making,' she added. The report includes a number of recommendations aimed at shaking up the traditional housing sector and making self building a more… Continue reading
UK report reveals the economic benefits of new home building
House builders in the UK are providing more than just homes with a new report revealing the extent of the benefits. The report from the Home Builders Federation, says that for example, in the South East of England where there is a shortage of new homes, last year some 22,470 homes were started by private house builders, the public sector and housing associations in the sector. But this is just the tip of the iceberg. Based on the findings of the report, the economic footprint of this house building meant that 96,621 jobs were supported, 899 graduates and apprentices positions were created, and 966,210 new trees or shrubs were planted. It also shows that £36,109,290 was contributed towards education in the area, £28,896,420 in extra council tax revenue was generated plus £224,700,000 in other tax contributions, and some £21,031,920 went towards new open spaces, community spaces or sports facilities, or enhancing existing resources through Local Authorities. On top of this 5,168 new affordable homes were built and payments of £497,553,210 were made to local authorities for further provision of new affordable homes. While house building is increasingly being recognised as a key driver of economic growth, there are still not enough new homes being built in the region, the report points out. In the South East, this manifests itself as a shortfall of 12,011 homes every year. If the region was to meet this need, the knock-on economic benefits would be 51,648 jobs created, 480 graduates and apprentices positions created, 516,482 trees and shrubs planted, and £19,301,998 going towards education in the area. There would be £15,446,403 in extra council tax revenue, £120,112,000 in extra tax contributions, £11,242,483 contributed to open spaces, community, sport and leisure facilities, 2,763 affordable homes built and payments of £265,964,002 to local authorities for further provision of new affordable homes. 'House building makes a huge, but largely hidden, social and economic contribution to the South East. And whilst housing output in the region has increased, we are still not delivering anywhere near what is needed' said Stewart Baseley, executive chairman at HBF. 'As well as delivering desperately needed new homes, increasing housing supply would deliver significant additional benefits for everyone living in the region. As well as providing desperately needed new homes, increasing house building would deliver massive additional benefits to communities across the land,' he explained. 'People often don't realise that the new community centre or school or football pitch has been paid for as a direct results of new homes. Ultimately, providing new homes for people also means better facilities for the wider community. These are the very things that turn a collection of houses into communities; brand new places where people want to live,' he added. Neal Hudson, associate director at real estate firm Savills, pointed out that house prices in the South East have risen by 17.3% over the last two years. 'However, the performance of markets within a region can vary substantially. These variations are determined by the economic, demographic and affordability profile of demand… Continue reading
UK housing market sees growth of second charge lending
Up to one in 10 remortgages or home owners seeking further advances in the UK could benefit from taking a second charge loan, it is claimed. Secured lending specialist V Loans believes that a combination of record low rates in the second charge market and the sector’s strong growth since 2011 highlights the benefits for customers and the opportunities for brokers. Customers who would potentially benefit include interest only borrowers, people facing early repayment charges, and people benefiting from lifetime trackers or low fixed rate mortgages who would lose deals by remortgaging, as well as those who may want more flexible terms for their further borrowing. Landlords could also be in line to benefit from increased competition in the buy to let second charge market, leading to significant pricing reductions, making second charge lending an attractive alternative to remortgaging allowing landlords to benefit from the increased equity within their current portfolio. The second charge market, which is on course to lend up to £750 million this year, has achieved year on year growth since 2011 against a background of a subdued remortgage market. Rates have dropped to all-time lows of 4.05% above base rate making the case for borrowers to take out a second charge without disturbing their existing mortgage arrangements. However V Loans estimates just 50% of advisers offer second charges to their clients, and is urging advisers to consider the benefits of second charge loans. 'Remortgaging or taking a further advance is not always in the client’s best interest and therefore it’s essential that all options are considered,' said Marie Grundy, managing director of V Loans. 'Interest only customers, those benefiting from lifetime trackers and low fixed rate deals or those who do not want to incur substantial early repayment charges by remortgaging, including landlords who wish to release trapped equity, could all stand to benefit from second charge finance,' she explained. 'The pending alignment of regulation for first and second charge markets will deliver huge opportunities and innovation to the market allowing advisers to provide better customer outcomes. Intermediaries should seriously consider including second charges within their scope of service ahead of the regulatory changes next year,' she added. Continue reading
