Tag Archives: housing
British govt releases enough unused land for over 100,000 new homes
Enough unused public sector land has been released in England to build over 103,000 new homes, it has been announced. Communities Secretary Eric Pickles said that the amount of land sold by the government surpasses the original commitment set by the Prime Minister, and is expected to rise again by the end of March this year. Now, the government is calling on councils and developers to help turn it into housing as soon as possible, and is urging local authorities up and down the country to follow this example and sell their redundant sites and buildings. ‘House building is at the heart of the government’s long term economic plan. That’s why, rather than leaving surplus public sector land idle, we are putting it to good use by releasing it to build new homes across the country,’ said Pickles. ‘I now want to see councils following Whitehall’s example and explore what they can do to release land and deliver new homes and savings for local taxpayers,’ he added. Housing Minister Brandon Lewis pointed out that housing starts are at their highest annual total since 2007, but acknowledged that more homes are needed. ‘That’s why for the last four years we’ve pulled out all the stops to release formerly used surplus public sector land for house building meaning we have now exceeded our own target,’ he added. On top of this, there are plans to release land with capacity for 150,000 homes between 2015 and 2020. Lewis also pointed out that the government has already taken major steps to boost house building and get more people into a home of their own by simplifying the planning system, making it easier to convert empty buildings into new homes and prioritising development on brownfield land. ‘The results are clear as house building starts are now at their highest since 2007, empty homes are at their lowest level since records began and government backed schemes have helped nearly 192,000 people buy or reserve a property since 2010,’ he added. The land released to date comprises of 899 sites across England, and includes Ministry of Defence land at Aldershot in Hampshire where planning permission has been granted for up to 3,850 homes as well as road improvements, two new primary schools, extensions to two secondary schools, two new pre-schools and day care centres and 110 hectares of new managed green space, play areas, sports and community facilities. At Norton Barracks, site of the former Army archives in Worcestershire, sold by the Ministry of Defence to Rooftop Housing Group in partnership with Wychavon district council, is now the site for 10 new affordable homes for returning services personnel and those who have retired from the Armed Forces. Bexhill former galley sidings, a derelict former oil storage depot with railway sidings site sold by the British Railways Board, now has permission for 64 properties on the site, a mixture of two three and four bedroom properties, including affordable homes. At Stratford City former railway land, sold… Continue reading
First time buyers lending in Scotland up 23% last year
Lending for homes in Scotland fell in the final quarter of 2014 but there were more mortgages going to first time buyers compared to the same period the year before. The latest data from the Council of Mortgage Lenders shows that overall lending was up 23% last year but mortgages fell at the end of the year. Scotland accounted for 6.6% of UK wide annual house purchase activity, down from 6.9% in 2013. Lenders advanced 27,700 loans to first time buyers in Scotland totaling £2.9 billion, 16% up in volume compared to 2013, and 23% up in value. A breakdown of the figures show that there were 7,000 first time buyer loans in Scotland, worth £750m. This was down compared to the third quarter 5% by value and 4% by volume. Compared to the fourth quarter of 2013, the number of loans increased by 3% and the amount borrowed by 9%. There were 8,000 loans to home movers, valued at, £1.2 billion, down 8% in volume and down 9% in value compared to the third quarter. Compared to the fourth quarter of 2013, there was a decrease of 8% in volume and a decrease of 5% in value. The total number of remortgage loans declined in the fourth quarter to 5,700 loans at £650 million, which was down 3% in volume but unchanged in value on the third quarter. Compared to the fourth quarter of 2013, activity was down 17% in volume and 13% in value. First time buyer affordability changed slightly in Scotland quarter on quarter with first time buyers typically borrowing 2.90 times their gross income, less than the 2.94 income multiple in the third quarter and less than the UK average of 3.38. The typical loan size for first time buyers was £97,200 in the fourth quarter, down from £98,600 in the previous quarter. The typical gross income of a first time buyer household was £33,965 compared to £33,520 in the third quarter. The relatively low level of interest rates saw first time buyers' payment burden remaining relatively low in the third quarter at 16.8% of gross income being spent to cover capital and interest payments, higher than the third quarter's 17.3%. Home mover affordability changed fractionally, with home movers typically borrowing 2.64 times their gross income compared 2.62 in the third quarter and to 3.03 for the UK overall. The typical loan size for home movers was £128,244 in fourth quarter, down from £130,000 in the previous quarter. The typical gross household income of a home mover was £50,773 in fourth quarter compared to £50,971 in the third quarter. Home movers' payment burden remained relatively low in Scotland at 16.5% of gross income being spent to cover monthly capital and interest payments, less than the 16.9% in the third quarter and considerably less than the 18.4% UK average. Overall for 2014, remortgage lending in Scotland was 23,400 loans reflecting a value of £2.6 billion. This was 14% down in volume compared to 2013,… Continue reading
Rate of home ownership in England at lowest level for 30 years
After rising almost continuously over the course of the twentieth century, the rate of home ownership in England has been declining steadily since 2003, the annual housing survey shows. The report published by the Department of Communities and Local Government shows that in 2013/2014 home ownership fell from 65.2% to 63.3% and is now at its lowest rate for almost 30 years. Indeed it is some 8% below the all-time high of 70.9% in 2003 and among owner occupiers, the proportion of people owning their home outright overtook the proportion owning with a mortgage in 2013/2014. The data reveals a sharp decline in the proportion of younger people owing their own home, particular those aged 25 to 34 who are traditionally first time buyers who are vital to the housing ladder. But the number of this group owning their own home fell from 59% in 2004 to just 36% in 2014. Over the same period, the proportion renting, either privately or through a local authority or housing association, increased from 41% to 64%. For 16 to 24 year olds, the proportion renting increased from 76% to 91%. The increase has occurred in the private rental sector, which currently houses 19% of total households in England, the highest share since the 1960s. Indeed, over the last decade the number of privately rented households has nearly doubled to 4.4 million, while the percentage of households in social rental properties has declined from 18% to 17%. The survey suggests that 25% of people in social housing and 61% of those in the private rental sector expect to be able to buy their own home in future. However, this remains a longer term aspiration, with around half of renters expecting it to take five years or more to take their first steps into the housing market. The survey lays bare the generational divide in housing with older households continuing to benefit from the growth in home ownership and accumulation of equity in the second half of the 20th century, with younger households suffering from a lack of access to home ownership in the 21st, according to Lucian Cook, head of residential research at Savills. ‘We urgently need a co-ordinated, long term response to the housing crisis rather than short term populist policies that only address a few of the symptoms. A new government will need to front up to the need to provide a bigger, better private rented sector and find ways to encourage the recycling of existing housing wealth so younger households can get on and trade up the housing ladder,’ he said. Savills forecasts that number of private rented households will continue to rise, while levels of owner occupation will continue to slide as higher interest rates, greater mortgage regulation and an acute housing shortage further reduce access to mortgaged home ownership. The firm estimates that by the end of 2019 there will be more… Continue reading
