TSI
Empty home scheme in Scotland has funding doubled
A scheme to tackle Scotland’s empty homes has had its funding doubled, the nation’s Housing Minister Margaret Burgess has announced. The Scottish Empty Homes Partnership (SEHP) will receive a three year extension backed by an additional £616,500 from the Scottish Government. SEHP, which is run by the housing charity, Shelter Scotland helps councils and their partners pursue work to bring private sector empty homes back into use. Overall, the number of unoccupied properties is falling. Currently, 31,457 homes are recorded as being empty for six months or more. Shelter Scotland will use the extra funding to recruit additional staff to support the Partnership and allow up to an additional 12 councils to participate in the Shared Empty Homes Officer programme. By the end of year three, up to 28 councils in Scotland could have had access to an empty homes officer and approximately 1,200 empty homes per year could be returned to use. ‘Empty homes are a blight on both urban and rural communities across Scotland. Bringing empty homes back into use is a cost effective way of increasing the supply of housing available to families across Scotland and it also aids community regeneration,’ said Burgess. ‘That is why the Scottish Government is not only providing a three year extension to the Empty Homes Partnership, but is also doubling its funding. Empty Homes Officers will report over 500 homes being brought back into use in 2014/2015, this compares with the 278 being brought back into use in 2013/2014,’ she explained. ‘There is still a long way to go but increasingly, local authorities across the country are embracing the work of the partnership. Clearly, the network of Empty Homes Officers is having a positive effect,’ she added. Graeme Brown, director of Shelter Scotland, described the move as great news. ‘The progress we have made supporting councils and their partners over the last four years to bring hundreds of empty homes back into use is testament to the hard work and commitment of everyone involved,’ he said. ‘Expanding the partnership and putting it on a longer term footing will allow us to do even more to bring private empty homes back into use. Our goal is to see a fully effective empty homes service in each local authority and to bring back as many of Scotland’s long-term empty homes as we can,’ he added. Continue reading
UK buyers and sellers concerned about property prices, research suggests
Both buyers and sellers in the UK are concerned about the price of property with 86% of buyers feeling it deters them and 91% worried about selling up. Some 40% of sellers stated that getting the best price for their property was their primary concern and an equal percentage of buyers listed house prices as a major deterrent to buying, according to research by online estate agent eMoov.co.uk. The over 50's lead the way as those most concerned about securing a good price for their property. With retirement potentially on the horizon, 40% of them listed getting the best price as their primary fear. This is in contrast to those looking to buy, as 43% of those aged 18 to 24 were most fearful of the price they would have to pay for their property. With London property costing double the national average, over 40% of people living in the capital feared property price tags, however Norwich was the surprise top of the bunch with over half of buyers surveyed worried about price. Southampton held the biggest fear factor for buyers searching for a new property with 42% of them stating that finding their next dream home was a concern. With interest rates currently as low as they can get and a rise inevitable next year some 19% of buyers considered this something to fear when looking to buy a property. The majority of these were under the age of 44, most likely as a result of larger mortgages and less equity in comparison to the older property buyers. Estate agency costs were the third biggest concern with 27% of sellers worried about it. This was most prevalent for those 35 and over. Finding the right mortgage concerned 29% of those aged 18 to 24, the highest of all the age brackets surveyed. Some 16% of those aged 25 to 34 also cited finding the right mortgage as a worry. ‘Buying or selling a property can be scary business for some. It can be a minefield of problems from start to finish and it's no surprise it strikes fear into the hearts of those involved,’ said Russell Quirk, the firm’s chief executive officer. ‘It won't come as a shock to anyone that house prices top the survey, they are what drive the market and unfortunately for the majority dictate the options open to them. It comes down to the age old game of cat and mouse, buyers worry about finding the lowest price, sellers are fearful about selling under value,’ he said. ‘It is interesting to see just 6% of people worry themselves silly over which estate agent they are going to use but 27% are put off by the actual cost of estate agency fees. This reflects a significant change in consumer behaviour over recent years and the importance put on ensuring value from an estate agent, something that the mainstream, high street agent simply does not provide,’ he added. Continue reading
London commercial property market expected to see strongest rental growth in 2015
London’s commercial property market experienced the strongest rental growth in 2014 and is expected it to stay in the lead over the next 12 months, according to a new outlook report. The recovery in the UK economy combined with low levels of development means that the balance between demand and supply is now swinging in favour of landlords, the report from Schroders also says. Risks to the positive outlook include the possibility that UK economic growth is much weaker than forecast, so that the upswing in rents stalls rather than accelerates. ‘While rental growth outside London is patchier, some regional markets are definitely coming out of hibernation. Given a reasonably high yield and a further rental growth as the economy improves, we expect that next year will see another solid performance from UK commercial real estate,’ said the firm’s head of real estate Duncan Owen. The report says that 2014 has been a good year for UK commercial real estate and unleveraged total returns are likely to be close to 20%. Most of this year’s performance has been driven by a favourable fall in property yields, as investors seek income. ‘Looking ahead to 2015 we expect that total returns will remain in double figures, but that rental growth will make a larger contribution. The recovery in the economy combined with low levels of development means that the balance between demand and supply is now swinging in favour of landlords and we anticipate that rental growth will accelerate,’ explained Owen. In the office sector, the emergence of central London as a powerhouse for international accountancy, law, media and technology companies has pushed vacancy rates back down to pre-crisis levels, not just in the prime locations of the City and West End, but also in less established areas such as Farringdon, Kings Cross and the South Bank, the outlook explains. ‘In previous cycles this squeeze on space and upswing in rents would have triggered a big increase in development and encouraged companies to move to cheaper offices in outer London, or other cities. However, so far we have seen relatively little new office building in central London, partly because stricter capital adequacy rules mean that banks are now less willing to fund projects and partly because competing residential schemes are often more profitable,’ Owen pointed out. ‘Moreover, central London now has such a deep pool of highly qualified labour that some companies are even re-locating to the centre from outer London or the wider South East, even though rents and business rates are more expensive,’ he added. Similarly, the report says that retail rents in many parts of London are rising on the back of strong population growth. There are also an increasing numbers of young professionals who choose to live in inner London rather than copy their parents and move to the suburbs. This is leading to the rapid gentrification of areas such as Brixton, Hackney and New Cross which were previously relatively poor. While rental… Continue reading
