Tag Archives: real estate
UK govt announces review to cut red tape for home builders
House builders in the UK are to have their say on red tape in the industry and how ineffective rules are hampering them from building more homes. The government has announced a Cutting Red Tape review which aims to uncover the issues that have the biggest effect on house builders and also wants to gather the views of smaller firms to understand the unique pressures they face. Ministers said that the wide ranging review will capture the experiences of all those involved in building homes, including developers, planners and trade associations. ‘This review will give house builders and smaller construction businesses a powerful voice as part of our £10 billion deregulation drive. Where rules are too complicated, ineffective or poorly enforced, I want to hear about it and the government will take action. Together we can cut red tape and get Britain building,’ said Business Secretary Sajid Javid. He pointed out that previously the Housing and Construction Red Tape Challenge delivered significant reforms and led to a review of local housing standards by the Department for Communities and Local Government. Housing Minister Brandon Lewis said he is determined to remove barriers faced by house builders to ensure more homes can be built to help reach the recently announced new targets for home building. ‘We want to hear the views of firms big and small so we can remove unnecessary red tape and help house builders do what they do best, building the homes we need,’ he added. He explained that the key starting points for the review are based on the priorities raised by the Task Force which include roads and infrastructure rules for new housing developments and environmental requirements, particularly European Union rules such as the Habitats Directive and wider EU environmental permit requirements. It will also look at rules that affect utilities such as electricity, gas and water as well as broadband infrastructure, and the government is also keen to look at the changes made to the Construction, Design and Management Regulations, as well as any examples of EU rules that are being implemented too strictly. John Allan, national chairman of the Federation of Small Businesses, said that the government is right to listen to the needs of smaller businesses. ‘In the 1980s, smaller house builders delivered around two thirds of our new homes. Today, it is less than a third. If the government can encourage small firms back into house building, that would be a major step towards meeting this country’s housing needs,’ he explained. ‘The new Cutting Red Tape review will look at the way the law is enforced, as well as whether the rules themselves are proportionate and fit for purpose. The responses from house builders will lead to government taking concrete steps to remove burdens on business,’ he added. The announcement was also welcomed by Stewart Baseley, executive chairman of the Home Builders Federation. ‘As the industry looks to drive further increases in housing supply we welcome moves to reduce… Continue reading
Call for more to be done for older home owners in the UK
The Council of Mortgage Lenders, to which most mortgage lenders in the UK belong, has outlined a range of calls to action for regulators, government and the industry itself to improve the market for older people who legitimately wish to borrow in retirement. In a new report, the CML demonstrates that the issues around lending to older borrowers are complex and interconnected. The overarching message is that improving this market in a meaningful way requires significant collaboration both inside and outside the mortgage industry. However, it is clear that the will to improve this market exists and the CML says that one of the most significant achievements of the work to date goes beyond the production of this report itself, and lies in the fact that so many different participants have come together with a common will to address the issues. Those involved range from mainstream lenders and lifetime mortgage providers, from across the spectrum of CML membership, to pension providers, financial advisers, compliance experts, groups representing older customers, retirement housing providers, think tanks, other trade bodies, and regulators. The report follows the publication last month of externally commissioned research on the demand for retirement borrowing and identifies a range of next steps and calls to action. These include continuing to work with the intermediary sector towards a more seamless advice framework. In particular, there needs to be work to identify how to improve ‘hand-off’ arrangements between different advisers when this would best serve the customer's individual needs. There ought to be monitoring of emerging evidence about how pension freedoms are interacting with the mortgage market, including whether access to pension pots is feeding through to some customers repaying their interest only mortgages, for example. This knowledge can be used to inform future action, the report says. It will also involve exploring the potential for a market in the 50 to 75 age group for a product that can flex between capital repayment and interest only rollup over time, and also the potential for further product innovation for the 65 to 74 age group. The CML is calling on the Financial Conduct Authority to consider addressing how regulation could encourage a more holistic approach to mortgage, lifetime and investment advice in the round, which is what many older borrowers really need. Also to look at how different reasons for borrowing should be reflected in sales channels, for example health may sometimes be even more important than age in determining the quality and suitability of products and the sales advice that accompanies them. The report says there needs to be a standard definition of retirement and some of the Mortgage Conduct of Business rules would need to be changed to allow, for example, for a lifetime mortgage to be an acceptable repayment strategy for interest only mortgages. On top of this the CML is asking the Treasury to consider introducing tax relief on professional advice received at retirement, to encourage take-up, and ensuring that the… Continue reading
Pending homes sales in the US up marginally after two months of declines
Pending home sales were mostly unchanged in the United States in October, but shifted marginally higher after two straight months of declines, according to the latest index data. The figures from the National Association of Realtors (NAR), show that gains in the Northeast and West were offset by declines in the Midwest and South. The Pending Home Sales Index, a forward looking indicator based on contract signings, inched 0.2% to 107.7 in October from an upwardly revised 107.5 in September and is now 3.9% above October 2014. The index has increased year on year for 14 months in a row. Lawrence Yun, NAR chief economist, explained that pending sales have plateaued as buyers struggle to overcome a scant number of available homes for sale and prices that are rising too fast in some markets. ‘Contract signings in October made the most strides in the Northeast, which hasn't seen much of the drastic price appreciation and supply constraints that are occurring in other parts of the country. In the most competitive metro areas, particularly those in the South and West, affordability concerns remain heightened as low inventory continues to drive up prices,’ he said. According to Yun, although contract activity has slightly trended downward since the spring, the ongoing strengthening of several local job markets continues to fuel the improved demand for buying that has now pushed existing sales above a five million sales pace for eight consecutive months. ‘Areas that are heavily reliant on oil related jobs are the exception and have already started to see some softness in sales because of declining energy prices,’ Yun added. With demand expected to remain stable through the final two months of the year, Yun forecasts existing home sales are set to finish 2015 at a pace of 5.30 million, the highest since 2006. He pointed out that although further expansion in existing sales is expected next year, ongoing inventory shortages and affordability pressures from rising prices and mortgage rates will likely temper sales growth to around 3% in 2016. Home prices are expected to slightly moderate from a 6% increase in 2015 to 5% next year. ‘Unless sizeable supply gains occur for new and existing homes, prices and rents will continue to exceed wages into next year and hamstring a large pool of potential buyers trying to buy a home,’ said Yun. A breakdown of the figures show that the index in the Northeast rose 4.5% in October, and is now 6.8% above a year ago. In the Midwest the index fell by 1% but remains 3.3% above October 2014. Pending home sales in the South decreased 1.7% in October and are now 0.3% below last October. The index in the West climbed 1.7% in October and is 10.4% above a year ago. Continue reading
