Tag Archives: news
Calls for new home building quality to be improved in UK
Members of Parliament in the UK and construction experts are calling on the Government to set up a New Homes Ombudsman to mediate in disputes between home buyers and house builders. This is one of 10 recommendations setting out measures to improve the quality of workmanship in new homes and provide consumers with easier and cheaper forms of redress, to get problems fixed. According to the All Party Parliamentary Group for Excellence in the Built Environment (APPGEBE) house builders should be upping their game and putting consumers at the heart of their business model and the Government should use its influence to promote quality at every opportunity. ‘The Government is intent on seeing the construction of one million new homes within the course of this Parliament. However, our view is that increasing the quantity of new homes must not be achieved at the expense of their quality,’ said Chairman of the group, Oliver Colvile. ‘It is clear to us that there is a quality gap between customer demands and industry delivery. Closing this gap will only come about, we believe, if housebuilders make a concerted effort to create a more consumer focused culture. From the evidence we heard, consumers want to see an improved quality of build, homes that are fit for purpose and an easy to understand warranty,’ he pointed out. He added that when something is wrong, consumers want an affordable and accessible means of putting it right. ‘To this end we have set out a series of measures to redress the imbalance between buyers and sellers,’ he said. The report says that the role of the building control inspector is a key part of the process and it recommends that there should be a minimum level of compliance inspections. It also says that new home buyers should be given information about the building inspections carried out as this will improve transparency. The role of a New Homes Ombudsman would include mediating disputes between consumers and their builders or warranty providers to offer a quick resolution procedure paid for by a housebuilders’ levy. The report also recommends that house building sales contracts should be standardised as this would remove much of the uncertainty that presently arises from the bespoke nature of each builder’s sales contract, which can deter so many from pursuing claims Buyers should have the right to inspect properties before completion and this would discourage builders from serving notices to complete prematurely, or concealing major defects until after they have received the full purchase price, and would also encourage better quality control and site management pre-completion Builders should be required to provide buyers with a comprehensive information pack, the aim being to improve transparency of the design, building and inspection process. The pack should contain information including, designs and plans, specifications and details about both warranty and building control inspections, when carried out and by whom. The report suggests that the Department of Communities and Local Government should commission a thorough… Continue reading
Buy to let rush boosted rental supply in the UK, especially London
The buy to let rush in the UK ahead of stamp duty changes in April boosted rental supply with London seeing the biggest increase, a new analysis report shows. The rental market received a boost of 8% more new properties advertised to rent in the second quarter of the year compared to the same quarter in 2015, according to the data from property portal Rightmove. The majority of new properties were in London, up by 22% on the same period last year, resulting in a small drop in the region’s average asking rental price to just under £2,000 per month. Despite the increase in supply, all other regions recorded a rise in average asking rents this quarter, with the East of England’s 5% annual change leading the way. The data also shows that rental enquiries were up 2% in the second quarter 2016 compared to last year, and up 1% in the two weeks after the referendum compared to same two weeks in 2015, as the lettings market shows no immediate signs of a Brexit impact. The supply boost failed to stop rents rising 2.8% in the second quarter outside London in England and Wales, though this is only 0.1% higher than the rise in the second quarter of 2015. The East of England’s year on year increase of 5% was the highest of all regions, while the South East saw rents increase the most over the quarter, up by 5.1%. London saw the biggest increase in supply this quarter compared to any other region with growth of 22%, resulting in a fall in average asking rents by 1.1% to just under £2,000 per month. ‘The big spike in March transactions resulting from a large number of investors beating the more punitive stamp duty tax deadline has created a rental supply boost which is good news for prospective tenants actively looking for a new place to live,’ said Rightmove’s head of lettings Sam Mitchell. ‘Now that the stamp duty changes have come in this boost may be short-lived, as landlords consider whether or not to make further purchases. Our own research among landlords shows that just under a third of them are concerned that the stamp duty changes, plus the forthcoming tax relief changes, will potentially wipe out their profits,’ he explained. ‘Once the tax relief changes start to be phased in from next year new buy to let activity could slow further. However rental demand is still outstripping supply in many areas of the country so we may see a shift by investors to look in areas that offer better yields for long term property investments,’ he added. The report suggests that investors planning to continue expanding their portfolio could look to some of the areas with highest demand from prospective tenants. The top five places include Ashton-Under-Lyne, Stalybridge and Oldham in Greater Manchester where average asking rents for two bedroom properties are around £520 per month and you can buy a two bed… Continue reading
Median sales prices hit record high in five regions in New Zealand
Five regions in New Zealand saw median sales prices hit a new record high but overall the median price nationals fell by 1% in June, the latest real estate index shows. The median sales price now stands at $500,000 with the Waikato/Bay of Plenty region recorded its fifth record median sale price for 2016, reaching $438,000, while the median price in Auckland reaching $821,000. The data from the Real Estate Institute of New Zealand (REINZ) also shows that Northland recorded a new record median of $360,000, while Otago reached $295,000 and Central Otago Lakes hit $730,050. The index figures reveal that sales fell 13% month on month which is in line with the general trend at this time of the year although an increase of 6% was recorded in June 2015. ‘Although the onset of winter means that June is generally a quieter month for the real estate market, there has been no let-up in the rate of price increases across the country, with five regions recording new record median prices,’ said REINZ spokesperson Bryan Thomson. ‘Although there is much discussion about the housing market and increasing new build supply, the fact remains that the vast majority of the supply comes from the sale of existing properties,’ he added. The data also reveals a rapid declines in the volume of properties available for sale right across the country, with a number of regions, such as Wellington and Hawke’s Bay, recording very low levels of properties for sale. Thomson pointed out that while Auckland continues to be the largest single region, its influence on the national picture is waning due to its own weaker sales and strong growth in sales in other regions, particularly Waikato/Bay of Plenty and Northland. Auckland’s peak share of national sales was 39.7% in January 2014, however, its share is now just over 33.8%. Over the same period Waikato/Bay of Plenty’s share of national sales has increased from 14.3% to 19.0%. A breakdown of the figures shows that Central Otago Lakes recorded the largest percentage increase in median price compared to June 2015, at 42%, followed by Waikato/Bay of Plenty at 26% and Otago at 19%. The number of properties available for sale across all regions in New Zealand has continued to fall between June 2015 and June 2016. Wellington has the fewest properties for sale with just over seven weeks of supply, closely followed by Hawke’s Bay with nine weeks supply and Auckland with just under 10 weeks of supply. The number of days to sell has only improved by three days at the national level over the past 12 months, although the regions have seen some significant improvements with nine regions seeing a decrease of 20% or more in the number of days to sell. Auckland was the only region to see a lengthening of the number of days to sell over the past 12 months. Between June 2015 and June 2016, the number… Continue reading
