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Group of experts created to help bring more affordable homes to London
The Mayor of London has released the first details of his plans to set up what he describes as a powerful Homes for Londoners team at City Hall to oversee home building in the capital and boost the delivery of new and affordable homes. As a first step Sadiq Khan has begun recruiting new experts to scrutinise 'viability assessments', the financial details that lie behind how much affordable housing new developments include. The experts, who will be drawn from finance surveyors and property consultant experts and be based at City Hall, will support housing delivery by making planning decisions faster and more consistent, and by ensuring new developments include the maximum amount of affordable housing. Khan will also lead a new Homes for Londoners board, formed of London Boroughs, housing associations, and developers. The board will oversee delivery, land assembly and investment decisions, and will draw on expertise from across the housing and property sectors to help develop new policy for the capital. ‘Home ownership has been slipping increasingly out of reach for more and more Londoners, and rents have been getting harder and harder to afford. I want to be honest with Londoners from the start that it will take time to turn things around,’ he said. ‘I am determined that Londoners get the same opportunities this great city gave me. That is why I am setting up my Homes for Londoners team to speed up home building and to move towards 50% of new homes in London being genuinely affordable to rent and buy,’ he added. A review of capacity and skills across the GLA will now get underway. Its aim is to ensure the Homes for Londoners team can play a more active role in the delivery of housing, particularly in bringing forward public land in London, and speeding up the planning process. This may also lead to additional expertise and support being recruited into the team in due course. David Montague, chair of the g15, said that Homes for Londoners will bring together the GLA, housing associations, local authorities and house builders to tackle the capital's housing crisis. ‘The priority now must be to build a long term pipeline of clean serviced and consented land. With this we can guarantee apprenticeships, jobs, economic growth, thriving communities and affordable homes. Without it, London will lose out in the competition for investment and growth,’ he pointed out. Baroness Jo Valentine, chief executive London First, which has published a major report on Homes for Londoners, described the move as an important and encouraging step towards solving the capital's housing crisis. ‘We want it to have a relentless focus on delivery, including getting more public land into the market,’ she added. According to Steve Bullock, executive member for housing, London Councils, believes that it will help all key agencies work closer together towards building the thousands of extra homes London urgently needs. Continue reading
More UK home owners remortgaged in July due to falling rates
Home owners who remortgaged their properties in July lost no time in taking advantage of falling mortgage rates following the UK’s decision to exit the European Union (EU), a new report shows. Some 63% of remortgagers lowered their mortgage rates last month, up by 7% from May and 43% acted to reduce monthly payments as cheaper deals appeared on the market in the wake of the Brexit vote, according to data from LMS. With the exception of two-year variable products at 75% loan to value (LTV), Bank of England data shows average mortgage rates were lower across the board in July than was the case in May before the EU referendum took place with many falling to record lows. The rate cuts meant that more home owners who remortgaged to reduce their payments enjoyed substantial savings. Just 28% of those who took this course of action in May saved £200 or more each month from their new deal. In comparison, 35% who remortgaged to reduce their payments in July reported a monthly saving of £200 or more. The report says that the appetite for securing lower rates and reducing monthly payments in July came despite growing speculation of a base rate cut from the Bank of England, which ultimately occurred in August. For the first time since tracking began in December 2014, LMS data shows that there were higher expectations of rates falling than rising in July. Among the 13% of remortgagers who expected rates would change in July 59% expected rates would fall compared with just 18% who felt this way in May and 29% in June, when the EU vote took place. Despite widespread speculation over the economic impact of the UK’s vote to leave, the July data from LMS also shows little sign of a drop in consumer confidence in the remortgage market. The percentage of remortgagers increasing the size of their loan rose from 26% in May to 28% in July, while the percentage increasing their loan by more than £10,000 was unchanged from May at 19%. Similarly, the percentage remortgaging to pay for home improvements increased slightly from 19% in May to 21% in July, while there was a two percentage point increase in those remortgaging to pay off other debts from 7% to 9%, potentially in a bid to stabilise their finances in the face of an uncertain economic environment. ‘The aftermath of the vote to leave the European Union has seen many mortgage rates tumble to record lows, a fact that has not been lost by home owners as many seek to take advantage of low rates. July’s figures show many people were keen to press ahead with plans to remortgage, regardless of growing speculation that a base rate cut might be on the cards,’ said Andy Knee, chief executive of LMS. ‘The Bank of England’s reduction of the 0.5% base rate to 0.25%… Continue reading
Would be home owners in UK save for over four years for home deposit
Aspiring home owners in the UK believe they will need to save for more than four years in order to afford a deposit for their first home, new research has found. While most will safe for four years and four months some 27% believe that they will never be in a position to buy their own property, according to the report from insurance firm Aviva. Official figures show that the typical first time buyer home in Britain now costs £180,677. In order to save a 10% deposit, aspiring home owners starting from scratch would need to save £347 a month to build this deposit in four years and four months, assuming no interest growth. Despite property ownership becoming more difficult as UK house prices rise, under 45s believe home ownership will only become more important in the next 20 years, the report found. However, a clear distinction emerges between different age groups, with 73% of 16 to 24 year old and 60% of 25 to 34 year olds saying home ownership will grow in importance, compared to just 40% of over 55s. As younger age groups are the next generation of potential homeowners, it is clear that the desire to be a homeowner will continue to be very significant. Younger age groups are prepared to wait to get on the property ladder. Some 81% say that home ownership is perceived as a more important milestone in the UK than other parts of the world. On a personal level, 79% of people in the UK agree becoming a home owner is important to them or was, if they already are home owners. However, younger generations appear to accept that the path to home ownership might require some patience. Some 53% of over 55s say they want or wanted to become a homeowner as quickly as possible compared to 43% of 25 to 34 year olds, a key first time buyer age group. While 24% of over 55s say they don’t or didn’t mind waiting a while to become a home owner, this rises to 40% for 25 to 34 year olds. Despite the importance of getting on the property ladder, many people are failing to protect their possessions as 19% or 10 million UK adults do not have contents insurance if they own a home and 33% of those renting. The research also found that 40% of people don’t know the value of their contents insurance, leaving them at risk of being inadequately covered. In addition, 62% do not know how much their possessions and valuables are worth, potentially resulting in being under or over insured. ‘The UK’s households are changing, not just as the population grows, but as society evolves to include more family types. However, one thing remains constant and that is our desire to get on the property ladder. The next generation of home owners are certain this will… Continue reading
