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UK housing market needs to address needs of ageing population, says new report
The need for an increase in the supply of new housing across the UK is now recognised as a key social and political issue but it needs to include housing for a rapidly ageing populations, says a new report. New home building needs to be widened with policymakers looking at how it can meet the needs of different buyers, especially older people, according to the latest Retirement Housing report from real estate firm Knight Frank. It points out that the population in the UK is expected to increase by nearly 10 million over the next 25 years, taking the total number of people to 74.3 million by 2039 and says that a rapidly growing population has ramifications for an already stretched housing market in the UK. But within this overarching challenge there is an issue which is becoming more pressing and that is providing housing suitable for an ageing population. Around 23% of the population are currently aged over 60. During the next 20 years this proportion will rise to 29%. This will push the median age across the UK from 40 today to nearly 43 in 2039, by which time nearly one in 12 people will be aged 80 or over, according to forecasts from the Office for National Statistics. In terms of housing, official data shows that households headed by older people account for nearly 30% of all dwellings. Of the projected increase in all households between 2012 and 2037, more than three quarters will be headed up by someone aged 65 or over, the report says. It explains that a significant cohort of home owners do not want to move house in older age, and instead will make changes to their current home to accommodate changes in their lifestyle and health as time goes on. ‘However, there are also a notable proportion of older people who do envisage moving house or downsizing to a home that better suits their requirements. This may mean moving to a more manageable property and moving to be much closer to amenities in the centres of towns and cities,’ the report adds. Specialist Knight Frank research shows that around 25% of those aged over 55 said they wanted to move into some sort of retirement housing in the future. This equates to around 2.5 million households. Meanwhile, a recent snapshot of buying intentions across 1,500 UK households within Knight Frank’s House Price Sentiment Index, produced in conjunction with Markit Economics, showed that 29% of over 55s planned to buy a property at some point in the future, while 35% were undecided. It adds that while some of these intentions may relate to investment property, the overall picture is one where the idea of downsizing is not being ruled out. It also explains that the UK housing market currently has a significant supply shortage, but the scale of the undersupply in retirement housing is highlighted when we examine the pipeline of new housing being built. Only… Continue reading
Edinburgh property market seeing strong demand and steady price growth
The residential property market in Edinburgh is experiencing high demand, especially at the middle to high end of the market, new reports show. The long term picture is one of steady growth. A comparison of property prices by agents Strutt & Parker shows that in March 2015, the month leading up to the introduction of the new Land and Buildings Transaction Tax (LBTT), and March 2016 reveals a 26% fall in average value. In March 2015 prices averaged £320,466 but in March 2016 this was down to £237,226, much of which has been put down to the distortion caused in the market by LBTT last year. However, the average value in March 2016 is significantly up on the average price in March 2014 which was £209, 624 and March 2013 when it was £200,744, indicating a steady upward trajectory in property prices. ‘The drop in average value simply serves to underline the huge spike in sales before the introduction of LBTT in April last year and it highlights the importance of experience when interpreting housing market trends,’ said Blair Stewart, head of Edinburgh City Residential Sales at Strutt & Parker. ‘It is not surprising that the 2016 average property price is less in comparison. It is more important to look back over the last three years during which time, taking 2015 out of the equation, we can see a steady rise in the city's average property price,’ he pointed out. In March, there were 247 sales in Edinburgh of which 225 were £300,000 to £750,000, 13 in the £750,000 to £1 million range and nine at over £1 million, up from 159 in February and 146 in January but down from 363 in March 2015, again underlining the surge in sales before the introduction of LBTT. ‘The high volumes and associated lower values in Edinburgh are partly reflective of a surge in the purchases of investment properties before the LBTT surcharge was introduced at the start of April. In general, additional and investment properties are lower in value, which is illustrated by both the jump in transactions and drop in average value,’ Stewart explained. ‘Correspondingly, we have noticed an adjustment in the average sale prices of the properties we are selling in Edinburgh change from around £780,000 in 2015 to approximately £600,000 in 2016. However, these figures also show a strong performance in the market in the first months of 2016 and I am confident we will see that continue into the summer,’ he added. He also pointed out that behavioural changes following two tax regime changes in a year are still playing out so a true picture of the market will become clearer over the next six months once there can be an analysis of figures which have not been distorted by either LBTT or the additional 3% surcharge on additional homes introduced this April. Agents CKD Galbraith is also reporting that demand for middle to high end residential property in Edinburgh city… Continue reading
Research reveals knowledge about self building land register is lacking in UK
One in five people in the UK believe there would be increased public support for the building of new homes if self or custom build properties contributed to a greater proportion of those built, new research shows. Despite the Self Build and Custom Housebuilding Act (also known as the Right to Build Act) coming into force on 01 April 2016, some 77% of people in the UK are unaware councils are now required to keep a register of those looking to buy land in the local area to carry out self or custom build projects. The registers will work alongside measures due to come into force in the upcoming Housing and Planning Bill, which will require authorities to ensure they have sufficient permissioned plots to match the local demand on their register. However, the research from the National Custom and Self Build Association (NaCSBA) and Ipswich Building Society found that one in eight expect to show an interest in self build property within the next year. This figure has remained constant since the annual survey was launched in 2013. However, just 2% of people stated their intention to take specific actions to progress their self build projects, such as purchasing land, submitting a planning application or starting construction, within the next 12 months. ‘At a time when much of the UK is experiencing a housing shortage, more needs to be done to raise awareness of this new legislation and encourage those looking for a new home to consider undertaking self and custom build projects,’ said Paul Winter, chief executive officer of Ipswich Building Society. ‘Due to the complex nature of a self build project, those seeking these specialist mortgages are advised to research the market and seek out a provider, and product, that best suits their individual needs and circumstances,’ he added. According to NaCSBA chairman Michael Holmes the success of the Right to Build Policy initiative, and the delivery of land to meet the huge pent up demand, depends on the registers yet he pointed out that the research shows that 77% of people aren't aware of the registers, nor what their success means to creating better new homes. ‘This figure needs to change. The NaCSBA is working hard to raise the public profile and support councils across the country to ensure that they have the correct measures in place. Currently, only 35% of LPAs have adopted a register and our aim is to get this to 100%,’ he said. Raymond Connor, chief executive of BuildStore, believes that this will change as more people become aware that finding a suitable plot of land has become simpler. ‘The research shows there is a significant gap between those interested in self build and those who intend to take specific action to progress self build projects. However, it is likely this sector will soon grow once more people are aware the main challenge of finding a suitable plot of land has now been simplified,’ he explained. Continue reading
