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Call for UK Government to do more to provide affordable homes
Councils in the UK have called on the Government to do more to tackle affordable housing as prices continue on an upward trajectory. A report on housing need in the UK published by the Association for Public Service Excellence (APSE) and the Town and Country Planning Association (TCPA) calls for urgent Government action to deliver the homes needed in the UK. It also reveals that 72% of councils think the National Planning Police Framework (NPPF) hinders building of affordable housing, 96% of councils say that their need for affordable housing is severe or moderate and 7% think starter homes will help address affordable housing. In particular they says that it is the viability test laid out in the NPPF that is hampering their ability to build social and affordable housing. However 11% of councils think that the viability test will provide the numbers that we need to tackle the biggest housing crisis of a generation, an increase of 19% compared to a year ago. ‘With 96% of councils describing their need for affordable homes as severe or moderate, and 89% worried that the extension of Right to Buy will lead to less affordable homes, it is clear that there is a real crisis,’ said Kate Henderson, chief executive of the TCPA. ‘Councils are concerned that government policy is not enabling them to deliver genuinely affordable housing. We need to have a housing strategy that provides affordable homes to all people,’ she added. The report sets out recommendations to tackle the challenges of providing the necessary housing, saying that the government need to put in place a housing strategy that provides decent homes for everyone in society. The report also recommends that councils are not forced to sell off their social housing to fund the extension of Right to Buy with the research showing that nine of 10 councils are worried that the extension of Right to Buy will lead to less housing available for social rent. ‘Our main message is we need Government to put in place a housing strategy for the nation that provides decent homes for all. Whilst efforts have been concentrated on so called affordable homes this is often not the case and these homes remain out of reach for the vast majority of people,’ said Paul O'Brien, APSE chief executive. ‘The situation is even worse for those dependent on social and genuinely affordable housing for rent. Current housing policy is in need of demolition. The time has come to start afresh by putting local authorities and new council homes at the heart of a new housing strategy,’ he pointed out. The report also showcases innovation in local government, including effective new models of housing delivery, and the report calls for the government to give back control to local authorities over their investment plans, rents and assets. This is the second housing research collaboration between… Continue reading
Student property investment in UK hit record high in 2015
Investment volumes in student property in the UK reached a new record at £5.1 billion in 2015, more than doubling the previous year’s figure of £2.41 billion. It also accounted for 7.12% of total UK commercial real estate investment volumes with growth expected to continue due to strong market demands, according to the latest report from property firm Knight Frank. Indeed, Knight Frank predicts that the year-on-year rental growth witnessed in 2015 within student accommodation will continue in 2016, leading to a rental uplift of 3.5% over the year, providing a relatively secure income base for investors. ‘2015 was a bumper year in terms of transaction volumes, and whilst portfolios dominated activity, we expect to see an increase in single asset opportunities throughout 2016,’ said James Pullan, head of student property at Knight Frank. ‘We predict a rise in institutional and international investors looking to invest in a buoyant asset class as pipeline opportunities come to market and investors look to diversify their asset portfolios,’ he pointed out. ‘Despite predictions that the London development pipeline will fall, we anticipate that other UK markets will open up and that there will be a consolidation in the sector,’ he added. The report also explains that this increased momentum within the student property industry demonstrates a broader trend of a substantial shift to the alternative asset classes by investors, with purchasers now viewing specialist sectors as a resilient asset class, delivering longevity and stable income flows. The data from the firm shows that some 18% of all commercial property investment transactions in 2015 were in specialist property and Knight Frank predicts that total investment into these sectors will increase by 10% year on year to reach £14.3 billion by the end of 2016. All four core specialist sectors; hotels, healthcare, student property and automotive, saw volumes exceed their five and ten year averages in 2015. Since 2006 some £46.6 billion has been invested into these sectors, with a record £13 billion invested in 2015 alone. Continue reading
UK launches first register in the world for foreign property owners
Foreign companies already owning or buying property in the UK will have to reveal who the real owner is under new transparency rules being introduced by the government. The details will have to be disclosed in a public register, the first of its kind anywhere in the world, as part of Prime Minister David Cameron’s plan to clamp down on foreign money being ‘hidden’ in the UK. It means that for the first time, foreign companies that already hold or want to buy property in the UK will be forced to reveal the details of who really owns them and no longer be able to hide behind a company vehicle. It will include companies who already own property in the UK, not just those wishing to buy. Foreign companies own around 100,000 properties in England and Wales and over 44,000 of these are in London. ‘The new register for foreign companies will mean corrupt individuals and countries will no longer be able to move, launder and hide illicit funds through London’s property market, and will not benefit from our public funds,’ said Cameron. He added that he would like to reverse the burden of proof so that someone suspected of using stolen money to buy property can be forced to prove they accumulated their wealth legitimately or they would face having the property taken away from them by a court. France, the Netherlands, Nigeria and Afghanistan are set to follow the UK’s lead and commit introduce public registers of true company ownership, while Australia, New Zealand, Jordan, Indonesia, Ireland and Georgia have agreed to take the initial steps towards making similar arrangements. The UK’s public register will be launched next month. However, details of how the measure will be implemented or whether there would be penalties for non-compliance have not yet been published. Transparency International, the global group that fights against corruption in all walks of life, said the register was a bold step towards making it much harder for corrupt individuals to hide their money in UK real estate. ‘We strongly welcome the UK initiative to require full transparency of the companies who currently own or will purchase property in the UK, helping to close the door to corrupt cash,’ said Jose Ugaz, chair of Transparency International. ‘We welcome the fact that other countries also intend to shore up their own property markets so they don’t open the door to corrupt cash from overseas,’ Ugaz added. According to international real estate firm Knight Frank less than 2% of residential property in London is owned by offshore companies. The firm’s head of London research, Tom Bill, believes that the move means that offshore trusts and companies will reassess their property holdings following the announcement of the ownership register, and some may decide to sell. ‘However, there is unlikely to be a wave of properties coming to the market. Offshore structures typically own other assets beyond property and evaluating how to manage a portfolio will… Continue reading
