Tag Archives: shows
UK estate agents say controversial fracking plans already affecting home sales
Estate agents operating close to potential fracking sites in the UK are warning that the controversial technique is likely to wipe tens of thousands of pounds off the values of nearby properties. It could also make homes harder to sell with agents in areas already targeted by fracking companies reporting concerns from prospective buyers over looming shale developments, with some sales already falling through as a result. The findings from a survey of estate agents conducted by leading marketing research agency Redshift and for environmental campaigners Greenpeace UK in three key areas where energy firms are planning to carry out fracking in West Sussex, Manchester, and Lancashire, shows that 67% believe fracking could bring down prices. A majority of them estimate the loss in value could be up to 11% with two agents putting it as high as 41% to 70%. With the price of the average house in the UK estimated at £272,000, even just a 10% drop in value could translate into a loss of tens of thousands of pounds. Some 54% said they are concerned fracking could reduce property sales near potential sites. Most of those who say they’re concerned believe more than one in 10 purchases could be affected, with nine dealers putting the estimate as high as 25 to 50% of all sales. One in four respondents also say home buyers have expressed concerns about the prospect of fracking in the area, with four estate agents reporting some customers have pulled out as a result. The Department for Energy and Climate Change is expected to auction off licence blocks to fracking firms over an area covering more than half of Britain in the coming months. The government has previously stated there’s no evidence that fracking will affect house prices. But three quarters of the estate agents said fracking should not be permitted until more research is done. James Nisbet, who lives a few hundred metres from one of the Lancashire sites says a few potential buyers have pulled out of purchasing his £375,000 house after learning about the looming energy development. ‘We have had six viewings so far, all with very positive feedback, but no one wants to commit to buying with the fracking shadow hanging over us. I’ve been hearing the same story from quite a few people in the area. We have lived here for 15 years. I really like this place and I don’t want to move, but I also don’t particularly wish to stick around to see what fracking will do to this community,’ he said. Paula Higgins, chief executive of the Home Owners Alliance, said it is worrying that homeowners who happen to live in fracking zones are being kept in the dark on how fracking will affect them. ‘Some are already starting to bear the brunt through aborted… Continue reading
Supply of new homes in UK falling well below demand despite rising development
Activity in the UK house building sector has continued to pick up over the last year, but the supply of new homes is still falling well short of demand, a new analysis report shows. Boosting supply where new housing is most keenly needed, is a key priority if the UK housing market is to avoid long term distortion, according to the latest annual house builder survey from real estate firm Knight Frank. House builders say policymakers shout boost resources for local authority planning departments, increase skills and training for the construction sector and step up the delivery of public sector land to help increase the supply of new homes, the report explains. The survey, which shows the views of more than 160 respondents from house builders and developers across the country, also shows that two thirds of those in the industry believe that the maximum number of new homes which can be sustainably delivered across the country every year is 180,000 or less. Only 9% said that an annual supply of more than 200,000 homes was possible. Nearly 60% of respondents expect housing completions to rise over the next year, with 18% saying the rise could be between 10% and 25%. However around half of respondents expect no change in the delivery of affordable homes over the next 12 months. More than 90% of respondents are expecting construction costs to rise again over the next 12 months and two thirds expect that development land prices will rise again this year. Indeed, rising labour and build costs are expected to pose the greatest risk to the sector in the coming year. The biggest policy change that would help boost development volumes would be recruiting more people to local authority planning departments, according to respondents. The imbalance between the demand for new homes and the number of units being built is well-recognised, by the industry and political parties alike, the report points out. In the 12 months to April 2014, some 141,000 homes were built in the UK, up by 4% on the previous year. However, official household growth projections suggest an additional 230,000 potential households a year in the UK. ‘Below these headline figures, there is a recognition that the right type of homes must be built in areas where there is the most housing need, typically adjacent to existing urban areas. This has led to tensions about the greenbelt, with a lack of consensus on how to expand accommodation in some of the UK’s most thriving towns and cities,’ said Grainne Gilmore, head of residential research at Knight Frank. ‘Nearly one half of the respondents to the house builder survey said that rules around developing on greenbelt land should be loosened,’ she added. The report explains that policymakers from all parties are keen to encourage development on brownfield land and the Royal Institution of Chartered Surveyors has recently published research suggesting there is enough brownfield land available in England to build 226,000 homes… Continue reading
UK housing market activity remains strong despite election
Housing market activity in the UK was stronger across the board last month than at the same point last year, regardless of the general election, according to the latest research from valuers. There were 13% more property valuations conducted in April than a year ago, despite last month’s total dipping by 32% compared to March 2015, the data from Connells Survey and Valuation shows. According to John Bagshaw, the firm’s corporate services director, all indicators from first time buyers right through to remortgagers are up on compared to a year ago and he said this demonstrates the broad momentum in the property market, which he expects to continue through into the new Parliament. However, he pointed out that a less than clear election result could affect sentiment. ‘The latest monthly dip from March is generally a seasonal effect at this time of year so if this monthly slowdown continues further we’ll know that something has changed more fundamentally. Yet so far, there is no sign of a serious housing market slowdown,’ he said. The data also shows that in April remortgaging outperformed the overall housing market, posting a 25% growth on the same month last year, overcoming a 34% seasonal dip from March. Bagshaw believes that remortgaging is leading all other valuations activity, on the back of record low mortgage rates which are likely to stay low for some time. ‘Inflation is at zero and there’s little sign that the Bank of England will need to raise the base rate imminently. In the meantime mortgage rates have plummeted to the lowest level in over four years. Thus, many households may be capitalising on this period by refinancing to a fixed mortgage,’ he explained. The buy to let market, while experiencing the sharpest month on month decline compared to other sections of the market, contracting by 36% in April, also saw the largest percentage growth from the same time last year, up 29% on April 2014. Bagshaw said this could be due to talk of rent controls and three year tenancies. ‘Some would-be landlords are perhaps waiting to see whether and how these policies will be implemented before looking to invest further. Yet the long term picture is extremely positive,’ he pointed out. ‘Over the past year landlords have benefitted from a booming jobs market, which has led more people to move within commuting distance of work, thus increasing demands for rental properties in certain hot-spots. Equally, as real term wages pick up there has been an increase in the rental prices tenants are willing to pay,’ he added. There has been a slower pattern of activity among first time buyers. The number of valuations carried out on behalf of new buyers fell by 33% since March, leaving first time buyer activity up 7% compared to the same month last year. Moreover, activity on behalf of home owners… Continue reading
