Uk
UK’s new housing minister urged to get on with tackling major challenges
The new housing minister Gavin Barwell has been urged to tackle the major challenges facing the property industry including lack of supply and new home building. Estate agents and letting agents welcomed his appointment in the new government under new Prime Minister Theresa May and said that his appointment as Minister for London should help tackle the housing issues that particularly affect the capital city. ‘This is a crucial time for housing, with demand greatly outstripping supply and an urgent need to reshape Britain’s housing mix,’ said David Cox, managing director of the Association of Residential Lettings Agents (ARLA) and Mark Hayward, managing director of the National Association of Estate Agents, in a joint statement. ‘We worked closely with the previous administration to increase transparency in the UK property and sector and remain very supportive of the need for a beneficial ownership register,’ they pointed out. ‘Property transparency is particularly a problem in London where housing stock has increasingly become a vehicle for money laundering operations, so we applaud the decision to provide the Minister with a duel oversight for London,’ they added. The statement pointed out that the Government’s decision to sell the Land Registry risks reversing its good work on transparency and they are calling on the new minister to work with the new Business, Energy and Industrial Strategy Department to think again on this proposal. They say it is also essential to honour the commitment of the previous Housing Minister to bring forward a review of the need for mandatory Client Money Protection (CMP) for letting agents, following the discretionary powers that were brought in as part of the Housing and Planning Act as they believe that only this can provide the adequate level of protection for landlords and tenants alike. ‘These challenges are not insurmountable and we greatly look forward to working with the new Minister to find a solution to these issues in the months and years ahead,’ the statement concluded. Barwell said that he is looking forward to working with councils, housing associations, developers and investors to ensure ‘we build the homes people need and deserve and to working with the Mayor of London to ensure the continued success of our wonderful diverse capital and that all Londoners share in it’. Barwell has previously held various parliamentary private secretary roles, including to the Minister of State for Decentralisation and Planning Policy and Secretary of State for Education, and has more recently been Assistant Government Whip and Lord Commissioner of HM Treasury. He is taking over from Brandon Lewis who has moved to the position of Minister of State for Policing and Fire Service. Barwell joins the team at the Department for Communities and Local Government (DCLG) which is led by Sajid Javid, who was appointed Communities Secretary last week. Continue reading
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
