Investment
Survey reveals satisfaction in UK rental sector with more families renting
The private rented sector in the UK has entered a more settled periods with over 80% of tenants satisfied with their landlords and more families renting homes, new research shows. The sector has seen some shifting demographics and overall satisfaction levels remain high, according to the latest survey from Paragon Mortgages, undertaken by BDRC Continental. It found that an increasing proportion of those making a home in the sector are couples with children who now make up 21% and couples at 29%. In addition to this 87% of those surveyed consider the rental sector to be their home and the average length of time spent living in a rented home currently stands at 12 years and 41% of landlords reported an increase in tenant demand in the third quarter of the year. Alongside a shortage of housing stock nationally, one factor driving this change is ever improving standards in the sector and 81% of those surveyed said they were ‘satisfied’ with their landlord while 66% of respondents considered their rented home to be either ‘good’ or ‘very good’ value for money. ‘The message coming through in this survey is that, for many people, the private rented sector is an increasingly attractive option over the long term,’ said John Heron, director of mortgages at Paragon. ‘This in many ways reflects the ongoing issue of affordability in the housing market, simultaneously however, competition and best practice are driving higher standards in the sector, making it a more attractive proposition for both individuals and families,’ he explained. ‘This data underscores the value of the PRS to the UK’s housing market. The UK’s PRS still has some way to go to before it catches up with its counterparts in Europe, but higher tenant satisfaction with both standards and affordability, show that there is room for increased growth in this sector,’ he added. Continue reading
Pilot custom build scheme for new homes announced in UK
A new development of 122 homes has been selected as a national pilot in the UK for large scale custom build, as part of an overall policy to boost this sector of the housing market. The proposed custom build site at Park Prewett, part of a major new housing development in Basingstoke, will be developed by ZeroC. The developer will provide homes under the custom build model, ranging from self-build to custom fit-out. Housing Minister Brandon Lewis said that each of the homes can be customised to the buyer’s specifications with various levels of custom build on offer to buyers. Plans for the site will also include 44 plots which will be allocated for affordable housing, along with a few entirely-self build plots that will be made available. ‘This government is committed to increasing housing supply and helping more people achieve their aspiration of home ownership whether that’s buying on the open market through schemes like Help to Buy, or to build,’ said Lewis. ‘We want to see custom and self-build grow significantly and believe it can play a role as part of a wider package of measures to help deliver the homes people want. The Park Prewett pilot is a fantastic example of our commitment to double the number of custom build and self-build homes by 2020 so anyone who wishes to design their dream house can do so,’ he added. Kim Slowe, managing director of Zero C, believes that it is an outstanding opportunity for the firm to pioneer the delivery of custom build in the country. ‘We plan to take the lessons learned and roll out custom build in all our projects within the UK,’ he said. According to Colin Molton, executive director of the HCA in the South and South West, custom build offers a more accessible route onto the housing ladder. ‘By giving people the option to take on some of the build themselves, we can reduce the cost of owning your own home,’ he explained. ‘We’ve made land available for custom build on pilot schemes across England, and aim to give many more people the opportunity to design their own homes in the future,’ he added. Lewis pointed out the Government will increase initiatives to further support the sector, with £350 million additional funding. A new flexible fund offering £1 billion in loan finance will replace both the Builder’s Finance Fund and the Custom Build Service Plots fund. This is on top of a range of reforms to support small builders, including the measure in the Housing and Planning Bill which will require authorities to allocate suitable plots to prospective custom and self-builders registered in their area. Continue reading
Prices and sales up in Scotland as market recovers from impact of new land tax
Property in Scotland increased by 1% in October, the biggest monthly climb since April and sales were up 10% year on year, the highest figure for the month for eight years. The latest data from the Your Move index also shows that East Lothian saw biggest boost as new homes developments have pushed prices up 6.3% since September. West Lothian saw the biggest jump in home sales of any area in Scotland, with third quarter sales up 23% on the same period last year. The rise took the average price of home in Scotland to £168,843 and the market over a million pounds is starting to recover with 30 homes in this sector sold between August and October compared to just 14 in the previous three month period. Christine Campbell, Your Move managing director in Scotland, pointed out that average property prices in Scotland increased by £1,600 in October, twice the £761 rise reported in September, as sales of million pound home start again. ‘This growth means that we have seen the largest month on month rise in property values since the introduction of the Land and Buildings Transaction Tax (LBTT) in April this year and the fourth biggest monthly jump since the August 2007, at the height of the housing boom,’ she said. She also pointed out that the seaside town of North Berwick has experienced some of the strongest sales activity over the summer, as buyers hunt for somewhere which has an easy commute to Edinburgh. ‘Crucially, the town has seen three homes sold for over a million pounds and completions on premium new homes which has helped fuel this considerable increase in local prices,’ said Campbell. ‘The top of the market now appears to be recovering after being affected by the steeper LBTT. After the introduction of the new levy in April, home sales in this price bracket ground to a halt, but they are now picking up again,’ she explained. ‘The compromise is that higher end sellers are having to reduce the prices of their homes in order to compensate for the increased LBTT tax rate. In Edinburgh, sales of detached homes in the third quarter of 2015 are up 3% year on year, but average prices for these properties have dropped 2% over the same period,’ she added. The index data also shows that so far in 2015 property sales in Scotland for first time buyers and home movers are increasing three times faster than the rest of the UK. ‘The landmark LBTT switch has made it cheaper to buy homes with the first threshold at £145,000. Some 50% of home sales in Scotland are outside the system,’ said Campbell. ‘With the average cost of a flat in Scotland only £134,000, flat sales have jumped 8% in the third quarter of this year, compared to the same quarter in 2014. Low interest rates have also fuelled the rise as we have seen… Continue reading
