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Pilot custom build scheme for new homes announced in UK
A new development of 122 homes has been selected as a national pilot in the UK for large scale custom build, as part of an overall policy to boost this sector of the housing market. The proposed custom build site at Park Prewett, part of a major new housing development in Basingstoke, will be developed by ZeroC. The developer will provide homes under the custom build model, ranging from self-build to custom fit-out. Housing Minister Brandon Lewis said that each of the homes can be customised to the buyer’s specifications with various levels of custom build on offer to buyers. Plans for the site will also include 44 plots which will be allocated for affordable housing, along with a few entirely-self build plots that will be made available. ‘This government is committed to increasing housing supply and helping more people achieve their aspiration of home ownership whether that’s buying on the open market through schemes like Help to Buy, or to build,’ said Lewis. ‘We want to see custom and self-build grow significantly and believe it can play a role as part of a wider package of measures to help deliver the homes people want. The Park Prewett pilot is a fantastic example of our commitment to double the number of custom build and self-build homes by 2020 so anyone who wishes to design their dream house can do so,’ he added. Kim Slowe, managing director of Zero C, believes that it is an outstanding opportunity for the firm to pioneer the delivery of custom build in the country. ‘We plan to take the lessons learned and roll out custom build in all our projects within the UK,’ he said. According to Colin Molton, executive director of the HCA in the South and South West, custom build offers a more accessible route onto the housing ladder. ‘By giving people the option to take on some of the build themselves, we can reduce the cost of owning your own home,’ he explained. ‘We’ve made land available for custom build on pilot schemes across England, and aim to give many more people the opportunity to design their own homes in the future,’ he added. Lewis pointed out the Government will increase initiatives to further support the sector, with £350 million additional funding. A new flexible fund offering £1 billion in loan finance will replace both the Builder’s Finance Fund and the Custom Build Service Plots fund. This is on top of a range of reforms to support small builders, including the measure in the Housing and Planning Bill which will require authorities to allocate suitable plots to prospective custom and self-builders registered in their area. Continue reading
Experts pick out markets that are too hot in the US
San Francisco's housing market has grown so unaffordable that some experts say the market is already in a bubble and it's not the only market in the United States that they are concerned about. A third of the experts surveyed in the latest Zillow Home Price Expectations Survey said the San Francisco housing market is in a bubble and another 20% believe the market is at risk for bubble conditions within the next year. The survey, sponsored quarterly by Zillow and conducted by Pulsenomics, asked more than 100 panelists about their expectations for the housing market. Of those, 66 answered a question about bubble conditions in 20 local housing markets. The survey responses revealed that some housing experts are concerned about over valuation in some of the nation's hottest housing markets and that there is significant disagreement among experts about whether the rapid home value growth in those markets puts consumers at risk. ‘A handful of markets, especially the Bay Area, are very hot right now, and it's possible home values may actually begin to fall somewhat in these places as more residents are priced out amidst rising affordability concerns, especially when interest rates rise,’ said Zillow chief economist Svenja Gudell. ‘Whether those local conditions constitute a 'bubble' is up for debate, even among economists. Without 20/20 hindsight, it's difficult to identify bubbles as they're happening, but it is very clear that nationally we are not seeing a return of the conditions that caused the last national bubble,’ she explained. ‘Tighter lending restrictions today mean we aren't seeing buyers get loans they realistically can't pay back, like we did in years past. It's significant that some experts are starting to worry about bubble conditions, but in my opinion, there's no real danger of a severe crash like the one we all remember from the last decade,’ she added. Some experts said they think bubble conditions are already present in Miami, Los Angeles, Houston, San Diego, and Seattle. A quarter of respondents said they think there is significant risk of a housing bubble in the next three years in Boston. However, the same number of panellists said there is no risk of a bubble in Boston in the next five years. The bubble fears are coming to the surface even as home values overall are expected to gradually level off over the next several years. The ZHPE panel projects an annual growth rate of 3.9% through to the end of 2015, a gradual slowing of the US housing market. Over the next five years, among all 108 panel respondents, the expected average annual home value appreciation rate is now just over 3%. This scenario would result in a national median home value of more than $215,000 by the end of 2020. ‘The long term outlook for US home values has diminished to a three year low, and a clear cut consensus among the experts remains elusive, even at the… Continue reading
UK house prices up 7% year on year, latest index shows
UK house prices increased by 7% in the year to October 2015, up from 6.1% in the year to September 2015, according to the latest official statistics. The data from the Office of National Statistics also shows growth of 7.4% in England, 1% in Wales, 0.9% in Scotland and 10.3% in Northern Ireland. Average mix-adjusted house prices in October 2015 reached £300,000 in England and stood at £174,000 in Wales, £196,000 in Scotland and £158,000 in Northern Ireland. Excluding London and the South East, UK house prices increased by 5.6% in the 12 months to October 2015 and month on month on a seasonally adjusted basis, average house prices increased by 0.8%. A breakdown of the figures show that the pace of annual house price growth was again varied across the nine English regions in October 2015. The largest annual increase was in the East at 10.4% followed by the South East at 9.5%. The North East had the lowest annual growth of the nine regions, with prices increasing 2.9% in the year to October 2015 but up from 1.8% in the year to September. London prices increased by 7.7% over the year to October 2015, up from 7.2% in the year to September 2015. Prices paid by first time buyers were 5.9% higher on average than in October 2014 while for existing owners prices increased by 7.4% for the same period. Rishi Passi, chief executive officer of Oblix Capital, believes that prices are set to continue growing in 2016. ‘As the economy stabilises, driven by improving job prospects, rising wages and recurring delays in interest rate rises, for the meantime at least, it’s likely this surge in house sales and price inflation will continue,’ he said. ‘Warnings that growth on this scale is unsustainable may ring true in the long term, especially in crowded London and the South East, as affordability issues become too significant a barrier to entry for first time buyers and low income families. Developers should take heed and look to other regions for their next opportunity,’ he added. Continue reading
