Tag Archives: news
London new housing zone target met ahead of schedule
The Mayor of London Boris Johnson has announced that his key target of 50,000 new homes for Londoners as part of a landmark Housing Zone scheme has been met ahead of schedule. A three further zones already announced will fast track much needed development in the boroughs of Brent, Westminster and Sutton along with continued efforts to free up land for new housing, he added. Other measures include the creation of the London Land Commission to identify all public land in London and strengthen its redevelopment alongside new transport infrastructure, the release of 99% of all land held in the Mayor’s own portfolio, and the establishment of the London Housing Bank to provide finance to accelerate the build-out of large sites. Eighteen out of a promised 20 Housing Zones across London have now been announced, bringing the total number of homes to be built to 50,965 of which nearly one third will be affordable to buy or rent. There will be two further zones confirmed by the late summer. Housing Zones are a collaborative effort between the Greater London Authority, the government and local boroughs to streamline approval processes and speed up development in target areas where it has previously been held back, unlocking valuable brownfield land to meet London’s growing need for housing. The Mayor will invest nearly £44 million in three new Housing Zones in vastly different areas of London which will together provide nearly 6,600 new homes as well as improved transport links, more than 13,000 construction jobs and new retail precincts, transforming these areas into new urban districts for generations of Londoners. ‘We have worked very hard to reach our goal of 50,000 homes, and we’ve done it with two more Housing Zones to go. This scheme has proven extremely popular with boroughs, who have clearly been looking for just that extra bit of assistance in revving up their housebuilding to answer clear demand from Londoners,’ said Johnson. Deputy Mayor for Housing, Richard Blakeway, visited a development at Wembley Park which will deliver 1,200 new homes in the shadow of the famous stadium, situated within the bounds of a second Housing Zone within Brent. In addition, the Edgware Road Housing Zone in the borough of Westminster will provide 1,113 new homes in the heart of London, adjacent to the major commercial centres of the West End and Paddington, of which 537 will be affordable. The borough will regenerate two existing estates with higher density housing, adding to the total number of affordable homes in the area. Once the Crossrail interchange is operational at Paddington Station from 2018, residents will also have access to this new transport link a mere 15 minutes away. ‘This is a great outcome for Westminster and the local community. The Futures Steering Group, comprised of residents and local businesses, has worked closely with the Council to help regenerate and improve this area for the benefit of local residents and businesses,’ said Westminster City Council’s cabinet member… Continue reading
First time buyers underestimate cost of moving into their home, survey finds
Almost three quarter of first time buyers in the UK underestimate the costs needed to buy a new home, with most only saving for a deposit, new research shows. They also spend £1,680 more than expected on essential repairs to a first home and under budget by over £6,000, according to a survey by home insurer Aviva. As a result, more than half were forced to wait an extra two years and eight months before finally having the cash to get on the property ladder and almost half confessed to coming close to giving up plans to buy their first home altogether. First time buyers typically take nearly four years saving for a first home, banking an average £12,143 during that time. In reality though, the average total amount actually needed is closer to £18,624. ‘Scraping together the cash for the deposit alone can be a mammoth task, but that’s just the first hurdle. It’s the other essential costs such as solicitors’ fees and Stamp Duty which can be the sting in the tail, not forgetting any essential repairs which might be needed once the keys have been handed over,’ said Heather Smith, marketing director at Aviva. Home owners spend an average £3,727 on essential repairs to their newly purchased home – typically forking out around £1,680 more than expected. One in five looking to buy their first home now would consider buying a house which needed significant DIY or repairs, just to get on the property ladder, the research also shows. ‘First time buyers face walking into a money pit if a first dream home turns out to be a nightmare. If the cash outlay needed to buy the house isn’t expensive enough, a hefty bill for unforeseen essential repairs is the last thing needed,’ explained Smith. ‘Anyone looking to buy a home should investigate every nook and cranny of the property before putting in an offer and must not be afraid of asking for several viewings,’ she added. With three quarters admitting to not doing enough research into the total cost of buying a home, Aviva has launched a First Home section to its website which includes a step-by-step guide to buying a first home and a mortgage jargon buster. Continue reading
Pending homes sales in US dipped in June, latest NAR data shows
After five consecutive months of increases, pending home sales in the United States slipped in June but remained near May's level, which was the highest in over nine years, the latest data shows. Modest gains in the Northeast and West were offset by larger declines in the Midwest and South, according to the pending home sales index (PHSI) from the National Association of Realtors (NAR). The index, a forward looking indicator based on contract signings, fell 1.8% to 110.3 in June but is still 8.2% above June 2014 when it was 101.9. Despite last month's decline, the index is the third highest reading of 2015 and has now increased year on year for 10 consecutive months. Lawrence Yun, NAR chief economist, said that although pending sales decreased in June, the overall trend in recent months supports a solid pace of home sales this summer. ‘Competition for existing houses on the market remained stiff last month, as low inventories in many markets reduced choices and pushed prices above some buyers' comfort level,’ he explained. ‘The demand is there for more sales, but the determining factor will be whether or not some of these buyers decide to hold off even longer until supply improves and price growth slows,’ he added. According to Yun, existing home sales are up considerably compared to a year ago despite the share of first time buyers only modestly improving and he said the reason is that the boost in sales is mostly coming from pent-up sellers realizing their equity gains from recent years. ‘Strong price appreciation and an improving economy is finally giving some homeowners the incentive and financial capability to sell and trade up or down. Unfortunately, because nearly all of these sellers are likely buying another home, there isn't a net increase in inventory,’ Yun pointed out. ‘A combination of homebuilders ramping up construction and even more home owners listing their properties on the market is needed to tame price growth and give all buyers more options,’ he added. The PHSI in the Northeast increased by 0.4% to 94.3 in June, and is now 12% above a year ago. In the Midwest the index fell by 3% to 108.1 in June, but is still 5% above June 2014. Pending home sales in the South also decreased 3% to an index of 123.5 in June but are still 7.8% above last June. The index in the West increased 0.5% in June to 104.4, and is now 10.4% above a year ago. The national median existing home price for all housing types in 2015 is expected to increase around 6.5% to $221,900, which would match the record high set in 2006. Total existing home sales this year are forecast to increase 6.6% to around 5.27 million, about 25% below the prior peak set in 2005 which was 7.08 million. Continue reading
